Tuesday
May282013
Emini Futures Trading | Getting Started
May 28, 2013 at 7:40 PM (QQQ)(DIA)(SPY)(GLD)(SLV)
Getting Started Guide For Emini Futures Trading
Emini Futures Trading is rapidly becoming the #1 market of choice for both Day Traders and Swing Traders worldwide. A purely electronic market, emini futures are accessible, affordable, liquid and require very little homework once the market closes.
Step #1 Open An Account
- Find an Emini Broker who comes with impeccable references. Of course he must have the proper credentials, licensing etc... but more than anything, your Broker should be someone you feel you can build a long term relationship with. This relationship is second only to your marriage if your plan is "learning to trade for a living". When it comes to money, this person will know as much if not more, about you and your finances than even your spouse. I don't want to sound creepy, but it gets a bit intimate. Take the time to make the right decision. The payoff is well worth it.
- How important are commissions? There's an old saying "You get what you pay for". It's not true. Sometimes you don't get what you pay for. Of course you want to pay competitive rates, but do not make the mistake of making this decision on a few dollars per round turn.
- Research the firm who will clear your business with the National Futures Association.
- Carefully read all risk disclosure documents. Ask questions. Make sure you fully understand what you are signing. For more information visit the NFA.
- Carefully read Important Day Trading Rules | Stocks - Futures - Options
Step #2 Retain the services of an Emini Trading School.
- Again, don't be afraid to ask for references. Ask to audit a few classes. Ask to watch the instructor trade real money in his own account or the Trading School account. This may be difficult to find. Many Emini Trading Schools supposedly have a policy against the instructor trading real money. I've only heard this from the instructors, never from the school administrators themselves. If this sounds a bit suspicious, good for you. If my son is ever faced with going to war, I pray his Platoon Sargeant has experience dodging real bullets. (and lived to tell about it)
- You will not learn everything you need to know in a few days, a week, or even a month. Honestly, your education will never end, however, you will require a minimum of 2-3 months ongoing classroom and/or online training. You need more than lectures and power points. This is your life. You need up close interaction with your mentor. You need to able to ask him questions as he trades real money in real time.
- Hearing how it is done is to live a fantasy. Insist on seeing it done. Do not settle for less.
- Make certain the course of study focuses on High Probability Trade Setups.
Step #3 Fund Your Emini Trading Account
- When is comes time to fund your emini trading account, the transaction is as simple as a wire transfer at your local bank. Many financial institutions allow you to send wire transfers from your online banking account. The importance of this step is the dollar amount.
- You will by now, have a good idea of how much risk capital you have available to fund your new Emini Futures Trading business. Just to put things in perspective, to open a McDonald's franchise requires $300k, a Taco Bell $1.2m - $1.7m and a Subway comes in at $101k - $280k depending on location. Fascinating that most people who want to open a Futures Trading Business plan to do it on as little as $5k-$10k. Is that realistic?
- You can open a Futures Trading Account with as little as $2k. This doesn't give you room to do much trading but it does open the account. One of the reasons Futures Trading is so attractive to so many, is the low barrier to entry. In all industries, not just trading, the lower the barrier to entry, the higher the rate of failure.
- When's the last time you saw a McDonald's go under? Quite possibly your answer is never. I want to suggest that you have 1 years living expenses in a separate account and that you have $10k-$30k to open your new trading business. Only deposit $5k in your Emini Trading Account. The balance will go in an interest bearing account until you need it. (follow our plan and you will may never need it) During the first 30-90 days you are in business you will have no income. Aside from electricity, internet and a trading computer, you will have no expenses either.
Step #4 Install Emini Trading Software And Set Up Emini Trading Charts
- The $5k you funded your Futures Trading Account with serves only one purpose. The purpose is to make sure you have access to Live Data and Live Emini Trading Charts during your training. You will not be placing live trades during the first 30-90 days so you will have no outflow in the account. It is quite possible the the Emini Trading School you have retained for your education will provide Live Data and Emini Charts for you. Since this is not often the case, fund the account.
- Learning to Trade Emini Futures is a dual step process. You must learn the mechanical side such as how to build and configure your charts, how to utilize the DOM to enter and exit trades, and of course the difficult side which is the art and science of trading itself.
- Use your Emini Trading Simulator to practice, practice, practice. Once your Emini Tradng Platform is installed on your computer, spend a few days building charts in multiple markets and multiple time frames. Your Emini Broker will provide you with an initial chart layout and your Emini School will also most likely provide a layout that compliments the curriculum. Use the layouts, but also become proficient at building your own. This will help you develop a deeper understanding of your layout and what makes it tick.
- Put on and take off a few hundred trades in your simulator. Use the many features such as "Market If Touched" until you become familiar with every feature. Use tool tips untill you understand what each icon is and does.
Step #5 Establish Your Emini Trading Hours
- Your trading hours will initially be spent in the simulator. Based upon your class schedule, you will need to break your day up into 3 parts.
- Classroom Instruction
- Simulated Trading
- Homework that centers on How To Read Emini Charts.
- Spectators become statistics. Trading Emini Futures is not a spectator sport. You will not learn to trade by sitting next to a trader just as you will not learn to swim lounging by the pool. You must be actively engaged in Simulator Trading at least 2 hours per day.
- Repsect the Trading Platform. Treat your Trading Simulator like the real thing, because it is. Until you are consistently profitable in the simulator, you will not graduate to live trading.
Step #6 Buy An Emini Trading Journal
- Take a few dollars from your segregated nest egg and buy yourself a nice Emini Trading Journal. You will spend hundreds of hours writing in these journals so purchase accordingly.
- Blood, Sweat and Tears will cover the pages of your journal as well as your words.
- What exactly do you write in your Trading Journal? Everything!
- What you learn each day..... write it down.
- What you feel when you wake up... write it down.
- What you think.. write it down.
- Even if it doesn't seem important.. journal it.
- Don't try to write well.. write it true!
Six Steps to Getting Started as an Emini Futures Trader
There you have it. Never rush the process. You've made a life decision to become a Trader, there are no shortcuts, no easy way to the top and most certainly no overnight riches. As in all things, you'll get out, what you put in.
When you start to feel overwhelmed, not if, but when... reach out. Talk to your Broker, your Instructor, your Mentor, or anyone you trust. Join a community. There is help. You do not have to go it alone.
Trading's Not Easy - But It Can Be Simple!
Questions?
Call us toll free @ 866-928-3310 during normal business hours.
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Reader Comments (5)
Hi Dewayne,just sending this post per request...have a great day and God bless.
How long before the average person goes live?
Sedona,
Great question. The minimum amount of time for a new trader is 30 days. For a seasoned trader who already has a working knowledge of futures trading and also experience trading in a live account, it could be less. We all know the tragic statistics that surround daytrading and trading as well. It's important to note that INVESTING in stocks, bonds or mutual funds is a completely different subject.
Most traders and daytraders make the fatal mistake of "going live" before they are consistently profitable in the simulator. Somehow we get it in our head that going live will make us pay attention and somehow become profitable. When that doesn't work we convince ourselves that if we simply up the ante' and trade "big", that will fix the problem and like magic... we will become successful and profitable day trading machines.
What actually happens is we blow up and become just another statistic. Again and for the record, "You must prove yourself consistently profitable in the simulator before you go live". If every trader and daytrader followed that simple bit of advice, the statistics would be vastly different.
We get out what we put in. Hard work, focus and discipline are all necessary ingredients to becoming a profitable Emini Day Trader. If you follow this formula... it will take as long as it takes. When you are truly ready, you will know. If you need more help, send me an email.
Blessings
DeWayne
Have you written any books or are there any trading books you recommend?
I've been working on a book "The Secret Life of Candles" for way too long. Will I ever finish it? Hopefully...
In the meantime, there are 3 great books I recommend to all CFRN Partners -
Trading in the Zone by Mark Douglas
High Profit Candlestick Patterns by Steve Bigelow
Reed the Greed Take The Money by Mike Reed
Our daily radio show sponsor Audible, allows us to give you 1 audio book free. Of course in exchange, they want you to take a free trial of their service. Sounds fair right?
If you decide the service is not for you, just cancel anytime during the free trial and you will never be charged a dime. Nothing - Zero - Zip - Nada. It's a great deal. Mike's book is an e-book. Steve's book you need to see the pictures, but Mark's book translates beautifully as an audio book because it contains no charts, pictures etc..
In a bookstore it runs you $40. As an audio book I believe it's $24, but as a listener of CFRN - you get it FREE!
Even if you cancel and don't become a member of Audible, the book is yours to keep. It takes 7 hours to listen to the entire book and I promise you, it will change your trading forever. You can put it on your smartphone, tablet and desktop, all at the same time. No matter where you listen from, it remembers where you left off.
Let me say this again, it will change the way you think about trading forever.
Combine that book and our methodology - SWEET!
Let me know how you like it.
Blessings
DeWayne