E-mini Trading Tips
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Daily Trading Log
If someone tells you that you can get rich quick day trading...run
for the hills! There are no overnight successes, unless you are very lucky!
Day Trading isn't easy, but with experience, dedication, self- control and
hard work, you can become a successful day trader. Here are some
Trading Tips that I have gleaned over the past 30 + years
day trading support and resistance.
Emini Trading Tips #1 - How to Treat Gap Openings
A gap up or gap down open is an emotional move, and it often will reverse
course and turn in to "trap open". Gaps that are less than 4 points on the
SP Future tend to get filled in the same day, especially Tuesday through
Thursday. Turns will occur within 20 to 40 minutes after the open. A trader
must be on the lookout for a reversal as soon as early momentum is lost.
A gap into a good support /resistance zone is almost always a good "fade" -
with stops no more than 1 point on other side of the support /resistance
(A "fade" is simply entering a position opposite of the direction of the
gap. If the market gapped down, a "fade" would be entering a long position
(buying) in to the selloff.)
Emini Trading Tips #2 - When the Market Moves Against You, When Do You Exit
Now admittedly, there are those out there offering e-mini trading tips that
would tell you to wait till your hard stops are hit before exiting a trade,
but the way I trade, I exit as soon as my ''edge'' on the trade is gone
rather than wait, hoping not to be stopped out. I like to stay in control of
my trades, and if the market doesn’t do as anticipated, I don't wait for my
stop to get hit. When there is no longer a high probability situation, exit
and take a second look.
Emini Trading Tips #3 - The Best Times of the Day to be Trading
For me, the best times of the day for trading are the first hour and the
last 2 hours. Here's an old rule of thumb (and this used to work like
clockwork in the "old days", and although it has diminished a bit, it still
"The Minor Time of Day"- If the Market opens higher, then there tends to be
a pullback within the first 20 to 40 minutes. If the pullback is weak, there
will probably be a continuation of rally into the early afternoon. But, if
the pullback is sharp, then you've likely seen the high for the day and
you'll want to be selling the bounces.
"Major Time of Day"- Around the 2:20pm to 2:40pm time frame, we'll often see
moves reverse or gather steam in that timeframe. People that have been
holding positions all day long become a bit "antsy" - they have to do
something with them before the Market closes for the day. When people
holding losing positions into late into the day see the time until the close
is near, that can cause the market to make some sharp turns in the last 90
minutes. The program gang also likes to get active that time of day.
Emini Trading Tips #4 - How Can Anyone Trade a Choppy Market?
I take a number of scalps in choppy markets. I time entries with Tick
extremes, especially when price pops into previous high areas of congestion,
or other intraday support and resistance. Moving averages are not good
during choppy days. (Scalps : small profit, "hit and run" type of trades)
Emini Trading Tips #5 - How To Measure Pullbacks
In a trend move, I like to see shallow pullbacks to a steeply sloped moving
average on one of the 3 time frames I follow. (more time frames, the better)
Pullbacks to symmetry in a persistent trend are useful when present.
Example: Rally, dip 2.00 points – Another run up, then a dip of 2.25 points
– A another push higher, then a dip 1.75 points. Note continued dips of
1.75-2.25 points repeatedly hold. A pattern has developed, and you want to
be buying those shallow pullbacks. This works great used in conjunction with
a steep slope of the 20 ema on the 5 minutes charts, or slightly bigger
picture, the 60 ema on the 5 minute chart.
Since 1996 I've been writing the RBI Trader's Updates,
a market newsletter, my "game plan" for the next trading day. I'm as
specific as possible including Support and Resistance levels that I will be
buying and selling against, which provides my subscribers with great trade
set ups nearly everyday. I've been trading for over 30 years, so I've been around the block
(several times) when it comes to trading.
If you're ready to take your trading to a higher level,
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