Investing Guide

A search on any of the popular search engines will provide a trader with a plethora of high probability e-mini trading setups. Oddly enough, I was unable to locate any specific article concerning low probability e-mini trading setups. Yet the problem of most e-mini traders is avoiding low probability setups, which are generally unprofitable. Considering the astounding number of new traders who fall victim to low probability e-mini trading, I found it odd that so little has been written on this particular topic.

Obviously, some trading setups are better than others. That is to say that an e-mini trader who regularly takes high probability setups succeeds at a higher rate than in e-mini trader who takes low probability setups. That being said, the rate of failure of first-year e-mini traders is in the 80% to 90% range. Obviously, an awful lot of new traders are taking low probability setups and failing.

Why, then, are we reluctant to talk about low probability trading setups?

In my world, it is very important to be able to identify high probability e-mini trading setups; but it is just as important to be able to identify low probability trading setups. Perhaps e-mini educators are loathe to discuss the negative aspects of trading as it may discourage potential students from entering the business; for whatever reason, I am baffled at the lack of discussion of low probability trading. Obviously, the failure rate for new traders would indicate that an awful lot of traders are taking an awful lot of lousy trades. Continue reading ‘E-Mini Trading: Low Probability Trading Setups Are the Bane of Effective Trading’ »

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In several recent articles I have been discussing some of the phases that new traders enter and exit in their e-mini trading careers. Each phase is a stopping point, or at least point where traders pause to rectify their trading styles, and then move on to another stage. The goal, of course, is to become a consistent and profitable trader. The final stage that I generally encounter with unsuccessful e-mini traders is a stage where they are on an eternal search for that one system that will make them the trader they want to become. I should also add, that the eternal search stage is usually a terminal stage in a trader’s career. I know many traders who are in this stage will not greet this article with warm smiles and a happy demeanor, but the truth is the truth.

Very quickly, we initially discussed the initial stage a new trader enters; where everything is brand-new and the realization that money can be lost is shocking. Following this new trader stage is a fear based stage where traders are hesitant and reluctant to let their profits run and enter normal setups. Quite simply, they are worried about losing money, not making money. A good many e-mini traders emerge from fear-based trading to successful trading; and a sizable number of traders end their career at the fear-based stage. This group finds trading very stressful, more stressful than they care to endure. Continue reading ‘E-Mini Trading Systems and the Search for the Holy Grail’ »

Chicago mercantile exchange or the CME first introduced the E mini contact in the year 1997. This was launched in order to catch the attention of amateur investors. S&P 500 was the first one which tracked S&P 500 index. Not only the amateur traders but also the professional traders soon become attracted to this trading. Amateur traders were able to enter this business because Chicago mercantile exchange made this possible for them. CME reduced the contact to one fifth of the S&P5 00 standard futures contact.

The advantages of trading in E mini futures are many. The margin required is smaller than the full sized contracts. Thus this is affordable for a lot of new investors. There are slight variations of the money required to enter the business due to the difference of the brokers. Near about $2,250 is required per contact in order to start day trade. Approximately $4,500 is required if you want overnight position. Fairly small and the offer is attractive to the new investors. This amount also varies time to time. Continue reading ‘Advantages of Trading in E Mini Futures’ »

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In recent articles I have been focusing on charts and current methodology for displaying market data on your e-mini trading chart. The vast majority of traders seem to focus their charting exposition on time-based trading bars. It seems to me that e-mini traders use time based charting techniques simply because they are popular, but it behooves a trader to explore other important and valid charting techniques that have some specific advantages in interpreting market data.

This article will focus on range e-mini charting techniques and some of the advantages of range bars. More specifically, range bars are based solely upon market price; time and volume are of no consideration in this methodology. Quite simply, range bars use only market pricing to display price action data. It is the trader’s responsibility to determine the specific range of each bar to be displayed. For our purposes we will be examining range bars relative to the ES and YM e-mini contracts. Continue reading ‘E-Mini Trading: Learning to Trade With Range Bars’ »

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E-mini trading charts are a visual representation of the data created by the price action of the market. Traders have a number of choices as to how that data is represented on a trading chart. In my opinion, most traders seem to opt for time-based charting methods. There are, however, other ways to display market data which may be a better option for some traders. In this article we will discuss some of the advantages of using tick charts (volume based charts), which are not based on time but on a traded selected number of trades. For example, a 500 tick chart draws a bar for every 500 trades, regardless of the amount of time it takes to accrue those 500 trades. In a heavily traded market, a 500 tick chart may display bars at a brisk pace; and in a slow market a 500 tick chart may only draw one bar every 10 minutes. The point is a simple one; volume based charts have no correlation to the amount of time it takes to accrue 500 trades. Continue reading ‘4 Reasons to Use Tick Charts in E-Mini Trading’ »

Incoming search terms:

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