Trading the emini index futures contracts has grown in popularity over the past few years since margin requirements are substantially lower compared to the full-size contract.Emini index futures trading is now available to people that in the past could not afford to meet the account minimum requirements for the full-size contract.Unfortunately, many new traders have opened futures trading accounts without first acquiring the necessary knowledge to become successful at futures trading, with many blowing out their brokerage accounts within the first few weeks.Successful futures trading with emini index contracts requires preparation and careful implementation of a system that is mechanical in nature with total eradication of emotion.Mechanical trading systems are preferred since they use indicators and chart patterns along with pivot points, support and resistance levels as part of the system.A profitable trading system also includes guidelines for proper money management, a very important part of any trading system.Money management or protection of capital is suggested by many successful emini traders as the most critical part of a mechanical system.A majority of seasoned traders with experience in the futures market concentrate on cutting bad trades short and letting the winning trades run.The importance of stop losses cannot be stressed enough and an experienced trader will know exactly where to terminate a trade should it go against him before he ever initiates the trade.Although mechanical systems are designed to remove the emotional aspect of the individual trader using the system, the system does capitalize on the impact of emotion in the market with range, trend and price development.The markets are driven by insiders and emotionally charged packs of investors and traders which pushes the markets up and down offering trade set-ups that mechanical systems recognize and alert the trader.
Saturday, September 15, 2012
Emini Education - What You Should Know Before Trading Emini Contracts
Trading the emini index futures contracts has grown in popularity over the past few years since margin requirements are substantially lower compared to the full-size contract.Emini index futures trading is now available to people that in the past could not afford to meet the account minimum requirements for the full-size contract.Unfortunately, many new traders have opened futures trading accounts without first acquiring the necessary knowledge to become successful at futures trading, with many blowing out their brokerage accounts within the first few weeks.Successful futures trading with emini index contracts requires preparation and careful implementation of a system that is mechanical in nature with total eradication of emotion.Mechanical trading systems are preferred since they use indicators and chart patterns along with pivot points, support and resistance levels as part of the system.A profitable trading system also includes guidelines for proper money management, a very important part of any trading system.Money management or protection of capital is suggested by many successful emini traders as the most critical part of a mechanical system.A majority of seasoned traders with experience in the futures market concentrate on cutting bad trades short and letting the winning trades run.The importance of stop losses cannot be stressed enough and an experienced trader will know exactly where to terminate a trade should it go against him before he ever initiates the trade.Although mechanical systems are designed to remove the emotional aspect of the individual trader using the system, the system does capitalize on the impact of emotion in the market with range, trend and price development.The markets are driven by insiders and emotionally charged packs of investors and traders which pushes the markets up and down offering trade set-ups that mechanical systems recognize and alert the trader.
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