E-Mini Trading Strategies

If you’re getting involved with e-minis, you’ll want to know some popular strategies. As you gain experience in e-mini trading, you’ll learn the advanced techniques employed by those who trade e-minis professionally. But for now, let’s look at the basic, elemental e-mini trading strategies that you’ll need to understand in order to become a trader.

First, you need to paper trade before you risk real money. It’s pretty easy to find a free e-mini demo account online. Most about the transactions will be real and will be in real time, except for the fact that when you make a profit you won’t get paid real money and, likewise, when you take a loss you won’t lose any real money. This simulated trading trains you in the true nature, speed, and volatility of the e-mini swing trading world before you need to risk real capital. However, there may come a time to take the plunge and get into the real world of trading. There will be pressures on you then that you can’t match with paper trading. But you do want to be well prepared. Paper trade for one to three months, depending on if you find yourself consistently making good trading decisions.

Second, related to what was said above: you are going to take losses. Don’t try to prepare so much that you’ll never take losses with e-mini swing trading. It’s impossible. Be mentally prepared for this fact of the trader’s life. Stick with your discipline and your strategies, and never let emotion get in the way of these.

Third, believe it or not, when you first come out of paper trading you should not focus too much on making money. This is the time to focus intensely on market fundamentals and mastering the ability to be disciplined and stick with your strategy without emotion.

Fourth, it’s a good idea to set yourself a limit on what percentage of your trading account you’ll risk with each contract. Depending on your risk tolerance, this percentage could be between 1% and 5%. Trading strictly within this parameter trains you in managing your money wisely and not being taken for a ride by either greed or fear.

Finally, beyond these basics, do more in-depth research into e-mini strategies used by traders.

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