Day Trading the E-minis
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Daily Trading Log
Day trading the
eminis takes a combination of discipline, caution,
aggressiveness, fortitude, and willingness to take small losses quickly. I
doubt that anyone is born with all these traits. Instead, the majority of
traders day trading the eminis start
this business with the wrong instincts.
They’re naturally willing to give up control of a losing position. When the
market heads towards a rookie’s stops, he/she waits, hoping things will turn
around. When they don’t, there’s often a temptation to loosen the stop and
increase the potential for loss. This makes no logical sense, but it’s human
nature. When day trading the eminis you have to
learn to take small losses quickly to succeed.
We naturally get excited when the market starts making a big move. The new
trader feels anxious about being “left behind,” and chases the market,
usually getting on board near the end of the trend or just before the next
pullback. By doing this, he/she has to suffer through the pullbacks as they
approach their hard stops, often stopping out for a loss. A trader
day trading the eminis needs to develop the
discipline to wait for the pullbacks that end at high-probability setups
before entering a position.
Sometimes a monster trend will falter at a key support and resistance zone
with a high TICK spike, looking like a great scalp setup or a possible trend
reversal. Those inexperienced in day trading the
eminis will jump all over this setup and too often get run over
by the continuation of the strong trend. This is where caution is important.
A very strong trend cancels a classic reversal entry setup.
After a losing trade or two, a new trader will be apprehensive to enter the
next setup. The market may pop up to a key moving average during a strong
down trend, and the Tick may record an emotional extreme, but this trader
hesitates to enter. The market will often move quickly and the edge that
this classic RBI setup had a few seconds ago is now gone. This is where
aggressiveness is key.
Everyone who has ever considered day trading the
eminis for a living has been told something like this, “Are you
kidding, the game’s rigged.” “It’s impossible to time the markets.” “My
cousin tried that and lost $15,000.” “I read that 95 % of traders blow up
their accounts.” “Better keep your day job.” No matter what you try to do,
it’s going to be tough to get beyond your own doubts and especially the
doubts of your family members and close friends.
This is where true grit, perseverance, and an intelligent, well-informed
approach are essential if you want to make a living day trading the eminis.
Next, if you don’t use support and resistance in your trading, you
absolutely should. Accurate support and resistance is the only unchangeable
part of the markets that I know of, and in my opinion, any trading strategy
must include it to survive. I should know, I’ve been trading for more than
30 years, and for the past 18 years my support and resistance numbers have
been published and subscribed to by traders of various degrees of
experience. My RBI Trader’s Updates have
the most accurate support and resistance levels you will find anywhere.
Looking for consistency in your trading?
Subscribe to my RBI
Updates and see how my support and resistance levels and
market analysis will help your trading - no matter what method you’re
There’s never been a better opportunity to turn the corner and become a
The financial markets are risky. Investing is risky. Past performance
does not guarantee future performance. The foregoing has been prepared
solely for informational purposes and is not a solicitation, or an offer
to buy or sell any security. Opinions are based on historical research
and data believed reliable, but there is no guarantee that future
results will be profitable.
We are not advocating trading futures. The prices and contracts in the
TradeStalker's RBI Updates specify a manner in which you could trade. We
occasionally mention the SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets. This is not an
endorsement or recommendation of the SP500 and Nasdaq futures markets.
The risk of loss in futures is substantial. You can lose more than your
original investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.