Micro Emini Trading Strategies Plus Data For
Just take the profit from the move, as long as you chose the right direction. Scalping can be done in either direction, up or down. If you do not have a data feed we recommend which ones to use in the member area.Taking small profits from tiny moves is called scalping. For most of our clients VIX Volatility index feed is just a 7-10/month addon. I decided to limit my losses to $200 and let my winners run a little further, but taking the profit quickly before it turned around again.NOTE: In order to generate the Vix Index Setup Signals you need a data feed that gives you: VIX (Volatility Index) and SP500 (S&P 500 Index), plus data for the E-mini markets you intend to trade.
I got stopped out half the time.And the other half the time, those trades that went up high, always came back down to the point where I just had a $200 gain.Not wanting to give it all back, I had another rule, when a good trade seems to start coming back down, get out while I still have a gain.Well, with all that, you can see that on the average I was gaining $200 half the time and losing $200 half the time.Due to my strict discipline and risk management, I never lost money by trading futures. The odds are pretty much balanced.So if I force half my trades to be limited to losing $200 while at the same time allowing half my trades to make more than $200, I thought I'd be on the positive side most of the time.That didn't work. That's how it is with buying stocks. I reasoned that every trade has a 50/50 chance of going in my favor. Micro E-Mini S&P futures contracts are one-tenth the size of the E-Mini S&P.When I began, I thought this would be a reasonably sure thing. How I Began Trading S&P FuturesThe trading strategy utilized by E-mini S&P 500 options ranges from basic to.
After a while, I had enough data to have something sufficient to analyze.Looking over all my losing trades, I discovered that I was always right. Analysis of the TradesAs for me, I was keeping a detailed log of all my trades. It's essential to get a handle on these things. They either trade too big, they trade on greed, they let emotion get in the way, or they don't use protective stops.
It was not uncommon to be sitting on a paper loss of one or two thousand dollars, before turning around and ending up with a $200 gain.As I tested this theory, I always placed a closing order to take just $200 because I didn't want to be greedy. Without a protective stop to limit risk, I found the losing trades would go very much in the wrong direction before turning around. If there were, everyone would be billionaires.The process involved vicious swings. There are no sure things in trading. But none took any longer than 24 hours to turn around.Hold your horses! Before you run and try this for yourself, I need to tell you how it goes through the process of going from a losing position to a winner, and the risks involved.
But in between, it’s a roller coaster—one that we have to endure for this to work, I imagined. All I had to do was to wait and be patient. Roller Coaster TradingSo what have I learned? I was always right.
It not only can happen, but it will happen.Even Market Wizards Experience Major LossesMany traders are very successful with trading futures. If I were to put complete trust in my idea and allow significant moves in the wrong direction—thinking that the market always turns around—the day would come that this rule breaks and the market continues to move against me. But statistically, it's still only 50/50. I know that there's a bigger part to the puzzle that is hidden from view.How do I know this? Mainly because, as I mentioned earlier, if a sure thing really existed, everyone would be billionaires.So what am I missing with my reasoning? One word: uncertainty!My logic may be right. I studied logic and statistics in my college days, and I realize that what I think I had learned from my trading experience is only the tip of the iceberg. But is this feasible? The Uncertainty of TradingIs this a good thing? Did I really learn something beneficial, something that I can use for the rest of my life making money?Sorry to disappoint you, but I'm not telling you to do this.
It's best not to make it too close, or you will be stopped out prematurely. Avoid Flash-CrashesAs with any trade, use a protective stop order, and make it GTC.I always choose the max loss I'm willing to risk, and I put a stop at that price. I found this to be a sincere presentation without the hype of unrealistic success some other books claim to provide. You can find his book on Amazon: The Little Book of Market Wizards: Lessons from the Greatest Traders.Jack Schwager shares critical lessons he learned by interviewing some of the best Futures traders. He interviewed many well-known successful traders.
The game can change before we even realize it.This article is accurate and true to the best of the author’s knowledge. What Did You Learn?Whatever you do, whatever you believe works at the moment, always keep the notion in the back of your mind that you're missing something in your reasoning that can change anytime.Remember that once we feel we discovered something that works with trading, or even longer-term investing, it can change in a heartbeat. If you don't have this feature, I would suggest you get another broker.
Of course this logic only applies to short term trades. I've had cases where I was too greedy, and even when I had a nice profit I would hold out for more, only to give it all back. Take smaller profits than others might take, but at least you increase your chances of success.
Having some greed, I set the sell point up a little from what I paid too (below what everyone else might think is a good profit). Thanks for the vote up.Suzanne Day from Melbourne, Victoria, Australia on August 10, 2014:A hub that has piqued my interest! Having traded regular stocks, I always set down a limit to sell, no matter what else I do.that way I don't force myself to sell under what I paid. Better, sometimes, to not even look at those too often.
Micro Emini Trading Strategies Trial And Error
Enjoyed and voted up!Glenn Stok (author) from Long Island, NY on March 24, 2014:Hi Kate, It means a lot to me to have someone of your stature in the brokerage business giving me such a positive review on this hub. And I had to go through many years of trial and error to learn how to trade safely, and overcome the negatives.Writer Fox from the wadi near the little river on April 01, 2014:What an interesting article on E-mini Futures! Your experience shows and I think many will benefit from your advice here. Trading Futures is not for everyone.
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