Learning The Emini Day Trading Rules

By Author: Francisco Mandelbaum
Total Articles: 28
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An emini trader needs to have an escape plan in place. It is not just important to know when to invest, but when to trade as well. You must review the trades you do as it will help to learn from your mistakes and avoid them in future.

It's important to a have a list of rules and regulations to follow in order to become a successful day trader. This is because as a day trader one becomes his own boss and is responsible for his or her own actions. The result one gets depends on how well one follows the regulations. It is the small mistakes that distinguish between successful day time traders from the failure. It is therefore important to take note of the following ‘rules’ and apply them if you are to become a successful day trader and should be adhered to the letter.

Rule number 1 is to have a selling plan

Most day traders spend a big a part of their time thinking of the stocks to buy. However a successful day trader will be considering when to sell. One should know the time to exit the market after making a profit. This is normally referred to as the escape plan. It's of equal importance to know when ...
... to enter and escape the market. Also recommended is to review every trade that one makes. Every trade is an opportunity to gain experience and also get information about the market. The instant feedback enables one the process of self-evaluation much easier.

Rule number two is that one should avoid trading within the first 15 minutes

This is because most of the prices quoted within the first 15 minutes are usually market orders placed the night before. It's at this time that the panic traders place their orders. For any anyone aspiring to become a successful day trader it is important to wait till the market is stable to start trading. This according to recent studies has been one of the main reasons why most day traders fail. It's important to avoid panicking and be in control of ones thoughts. This will avoid making massive losses and at the same time improving the profits.

Rule three is that day traders should avoid midday trading

It’s important for any day trader to be well informed about the role of the timing of the trade in success. The market is usually volatile at the open and close of the market. This volatility in the market enables the day trader to overcome the high transaction costs. It's therefore important to keep checking the time to avoid midday trading. However, trading is perfect during the other hours.

Rule number 4 is minimizing risk

Before making any trade one should carefully consider the potential profit to be made and how much money one can lose. However, most people when doing e-mini trading only look at the profit side of risk management. It's important to know when to exit the market to avoid further losses. This will enable a day trader to avoid making massive losses at any one given time. It is important to carefully consider ones downside price. It will assist the day time trader to know when to exit so as not to make losses.

Author of this article is a seasoned trader that recommends learning day trading rules before trying out the luck.