Archive for January, 2010

Do you want to learn how to become a full time day trader?  Unfortunately, many people never see the type of success that can classify them as a professional trader.  In this article we’re going to talk about a few things you need to do in order to become a successful e-mini day trader.  I believe that if you follow these simple steps, your chances of becoming consistently profitable are infinitely greater than just following outdated text books.

As you may already know, trading offers an income and freedom opportunity unparalleled to any other business.  What other business allows you to work just 90 minutes a day?  Furthermore, you don’t need a boss, employees, or customers.  The overhead is very small, and with technology advancing all over the world, you can trade from anywhere with a high speed internet connection.  If trading is such a great opportunity, then why are so many traders failing at this business?  Here are some tips that can help you on your journey to becoming a pro trader!

Professional Trader Tip #1 – Use a trading strategy that gives you a positive expectancy.  For some, this is common knowledge.  Others might not yet know the meaning of a “positive expectancy”.  Basically, you’re looking for whatever analysis you’re using to make decisions, to give you an expectancy to profit over time.  It doesn’t matter if you’re using technical analysis, fundamental analysis, automated strategies, or discretionary trading; The only way to show a positive expectancy is by using the same trading strategies every time.  Here’s what I mean… you need to have defined rules for trades, entries, and exits.  Without defined rules, you’re essentially guessing, which can make it very difficult to see consistency in your results.

Professional Trader Tip #2 – Employ a solid risk management structure that evaluates these three components: stop sizes, position sizing, and profit targets.  If you can lay out your risk plan before trading the market, you can remove a lot of the psychological weight that comes from the fear of losing money.  If you know the maximum amount of money you’ll ever lose on  a trade, then you won’t worry if any given trade is going to win or not.  If you have a high win ratio and reward-to-risk ratio, then your positive expectancy will give you the confidence to trade without second-guessing.

Professional Trader Tip #3 – Do what’s comfortable for you!  I see a lot of new traders trying to immulate what other professional traders are doing.  This is fine so long as the new trader is trading in a way that’s comfortable for his own personaility and risk tolerance.  Blindly following another trader’s style is a dangerous and unprofitable way to trade the markets.  Here’s why… Say I have a risk plan that doesn’t sit well with your own risk tolerance.  Even if I make money with that plan, if you’re not comfortable with it, then you probably won’t stick to the rules.  So, you must find out who you are as a trader, then execute on your own style that’s in line with your personality.

While these three tips can help you become a professional, there is a lot more involved to earn the right to make the big bucks.  For more information on the Emini Academy’s training, visit Our Emini Trading Blog for more free information, or give us a call at 800-788-1658.

I wish you much success,

Chris Dunn