Bull Discussion Forum |
||
| Contents | Search | Post |
|
|
|
|||||||||
Subject0:
NASDAQ Emini Index Futures Trading - Learn How
From0:
Category0:
Date: 25 May 2007
Time: 13:02:15 +1100
Remote Name: 208.116.51.66
NASDAQ Emini Index Futures Trading - Learn How
Playing the emini index futures market is extremely volatile and liquid which
makes it a field that discipline and internal control will eventually establish
if the trader is successful or not. The first step that a novice trader should
bear in mind is taking a look at their self or take an internal inventory. To
benefit from index futures market success, the trader must first build a system
that is right for them and one that fits their personality. In order to obtain a
system like this, the trader must first take a inventory of himself and his
skills: his personality or temperament, time constraints, available resources,
weaknesses and strengths. Without first taking this personal inventory, the
trader can never hope to develop a trading methodology that is correct for them.
How many resources do they have on hand that can be used to trade and available
for risk? Absence of funding is a cause of major difficulties for rookies. If
satisfactory funds are not accessible then appropriate position sizing cannot be
accomplished and this is a vital ingredient part of a profitable trading system
that goes largely overlooked. Does the trade have acceptable computer skills? If
not, a computer class should be taken to enhance increase computer proficiency.
There are many essential issues that the trader must consider before entering
the emini markets. One important issue is time. If the trader has a full-time
job during market hours it will be next to impossible for the trader to access
the markets during the daily sessions. However, it is possible for the trader to
employ implement an automated system that will buy and sell index futures
contracts automatically. However, this sort of system is usually reserved for
the trader that is experienced and already has the needed skills to be
successful with this type of trading system.
The trader�s objectives when trading the index futures market is another very
essential characteristic of the market. The trader cannot create a successful
trading system for making money in the futures markets unless he first
understands what he is wishing to accomplish. Determining his objectives and
having them clearly in his mind should be major task in developing a system with
almost half the time spent designing the system.
Determining how aggressive the trader wishes to be in the market is another very
important part of becoming profitable. Does the trader have a long term view
that involves keeping futuresindex futures contracts for an extended period of
time or does the trader wish to use the swing trading or day trading form of
emini index futures trading, where the time periods are much shorter than the
long term form of trading?
As you can understand from the brief outline above, there are very many
different features of index futures trading that must be measured before ever
approaching the market. Taking a self-inventory of your personality and
available resources is the first step a new trader should take in system
development and trading success.
|