Emini Course - Do You Have What It Takes To Be A Emini Index Futures Trader?

The index futures market has seen an increase in volume over that last few years since the introduction of the scaled down emini contracts which are offered on all three major indexes. What makes them so appealing is traders no longer need a surplus of cash available to trade the futures markets since margin requirements are significantly lower. With more traders involved during the daily sessions, increased liquidity and volatility offer multiple daily opportunities for market participants to execute profitable trades.

However, emini index futures trading does require a certain level of skill on the part of the trader to be successful. If you are considering trading in the futures markets, it is important that you first take a personal inventory of both your personality characteristics and your skill level in the financial markets. Emini futures trading is best utilized by those people who are looking to apply a short term trading methodology such as day trading or scalp trading, since volatility and liquidity in the futures markets lend themselves very well to these trading methods.

Taking an inventory of yourself should be your first step since personality characteristics will be a major factor in your success as a emini trader. Understanding that losses will be incurred when trading, no matter what financial market is chosen to trade, is an absolute necessity. Many people have difficulty accepting monetary losses and losses are an absolute when trading futures. No trader executes winning trades one-hundred percent of the time although skill levels can be increased to the point where the trader understands losing trades are a part of successful trading. Bad trades will happen but a skilled trader knows how to protect his trading capital by cutting losses short on broken trades.

Most veteran traders utilize a tandem trading system that employs indicators to alert them of possible trade set ups and money management rules. Indicators used for possible trade set ups is self-explanatory since most people with even a rudimentary knowledge of trading understand charts and indicators are employed to determine trade execution. However, money management or preservation of capital is what separates successful traders from struggling and broke traders.

Brokers and market gurus emphasize the need for trading software and order entry with very little said about the principles of sound money management in a trading system. A complete system will help the trader determine when to enter the market and more importantly, when to exit the market. Determining your personality traits as well as having the discipline to follow your trading system rules are attributes of a successful emini futures trader.

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