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It is important that you base your emini trading plans on something concrete rather than your gut feeling. Knowing the purpose will enable you trade with better clarity and stick to your plan. You also need to avoid second guessing yourself during the trade. In online futures trading, preparation is half the battle. If you aren’t fully prepared to execute a trade then the chances of your success are probably very less. The following are some practical tips and guidelines that will help you prepare. While they may seem simple, just remember that looks can be deceiving. Discipline for any trader is an essential part of it all. Without the relevant discipline you won’t succeed. You need to have the discipline to stick to your plan of action (methodology). This means that you must always stick to your entries, your stop losses, profit-taking, money management, trade management etc. In most cases this is hard to do since we are human and it is normal for our emotions to come in play. However, you must ensure that you master this. The next thing you must do is to ensure that you know what you are trading. This means that you must have a purpose for trading and always know why you are trading. Always have sound reasons for entering a trade and not just relying on your gut feeling or shoot from the hip because you feel lucky. Ensure that your trading is based on something that completely makes sense (for instance, on the technical charts). Ask yourself whether it’s a thrill or you are looking to make a living. Whatever the reason is, knowing your purpose will help you trade with better clarity and direction. Always plan before you start trading and then stick to your plan. It pays to know beforehand exactly what you are going to do and at what time. Plan all your trades before hand and then follow up on your plans. For instance, know the market you are trading, when you are going to enter and exit, how much time you will hold the trade for the market to move before exiting, where you are going to take the profits and by how much you are going to trail your stop orders. Writing it all down will help you stick to the original plan and avoid second guessing yourself during the trade. Sometimes your emotions may get the best of you so having a point of reference will keep you on course. Don’t let the market ups and downs affect your overall game plan unless they are conditions that necessitate a trade change. Always make use of stop orders. Place the orders when you enter the markets and be sure to move them accordingly if the market moves in your favor. Stop losses limit your risk and preserve your capital input. Avoid falling in love with any trade. If it is wrong admit it and then get out. It is unfortunate but often times traders stick with a trade because they can’t admit they got it wrong. You will lose all your capital if you don't place your initial stop loss orders as soon as you enter a trade. Everyone makes this mistake at one point or the other, but try and make it a habit from the start of your online futures trading career. Author of this article enjoys listening to the CFRN Emini Futures Live Market Commentary each day and also watching the CFRN Professional Emini Traders place live trades in their Live Emini Trading Room.
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