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If an emini trader wants to be always right, it won’t happen. However, you can hope to be right most of the time. It is a realistic to find a trading methodology that you are comfortable with as it will help cut your losses short and enable you make profits consistently. As more and more people get into emini day trading, they are exposed to a whole lot of false information. This information is floated around by people who don't know the first thing about being an emini trader and it is unfortunate but people do believe this false information. There are certain trusted sources you can refer to when seeking information about eminis and how to trade them and certain steps to follow to ensure that you are indeed successful at it. With that being said, here’s a layout of some of the things that will lead you to a profitable trading methodology. After all, it is all about making money in the end. The first thing we are going to look at is reliability. This means the number of times you actually do make money. Many pros emphasize this fact and so should you. Most traders want to be right 100% of the time and they think anything less than this outstanding percentage is failing but this is untrue. The best you can hope for is to be right 50% of the time. Take note that even with this percentage you can make a lot of money as long as you combine them with the other factors we are going to look at. Next is the risk to reward ratio (the size of the profits compared to your losses). When first putting on a trade, the best you can hope for is a 2:1 ratio or better. However, this can be very difficult to find. It would therefore be much more realistic to find a trading methodology that has a ratio of 1:1. This way once you factor in your trade management it comes to a 2:1 ratio for every trade you make. You may have heard this many times before but you should cut your losses short and let your profits run. This is an absolute must is you are to be successful at trading eminis. Look at the number of trading opportunities that present themselves. This means the number of trades your trading methodology generates. If your trading system generates only a couple if trades a year then you may be limiting the amount you can make due to the small number of trade set ups. However, if your trading methodology generates a lot of trading opportunities then you will most likely make a whole lot more money. This s of course assuming you have all the right factors in place during the trades. The size of your trading capital also matters. Fact is, the smaller the amount you have as trading capital then the harder it is to make some really good returns. When you have a large account it is much easier to make some good returns. Take note that this is a two way road and if you are not careful you can make some huge losses. Look at your position sizing strategies so that you know just how much you are risking throughout a trade. A prudent emini trader knows exactly what they are going to lose should the trade go wrong even before they enter into one. 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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