The Six Important Elements if E-mini S&P Trading
Trading the E-mini S&P Strategies requires a methodology to trade successfully, but there are other elements and factors that traders should not overlook. These are not features that would help you choose a direction nor do they assure any success, but if you adhere to these rules, it will help you choose a methodology suitable for you. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.
1) Decide which time of the day you want to trade. Some traders trade during the first one hour or two of the early session. Some feel that gives them a better chance as oppose to day trading the whole day. In the early morning session, you will find there is more liquidity due to institutional flow, as oppose to more retail flow that could dominate in the afternoon hours.
2) Price Feed-here is what you are looking for when it comes from the exchange: unfiltered data from the exchange.
3) Backup broker – platforms will go down. It’s not “if,” but “when”. It’s technology, and it’s never perfect. You will need to know a broker, and or a trading desk person who can help you immediately. The “down” time can be because your net connection went down, or the data is down, it’s irrelevant. But, being ready and establishing a rapport with someone who can immediately tell you where you stand, is priceless.
4) Stability – Go with a platform that is commonly used by traders, and is often discussed amongst traders. Consider Sierracharts, for example. Always look for feedback about reliability and stability. Some platforms require more memory to operate, so you need to use those that are compatible with your computer.
5) Be conscious of commissions- Single dollars might not seem a lot, but it adds up pretty quickly and can have a tremendous effect on your trading results. Save!
Commissions should be competitive, but your level of service, frequency of trading should all be all taken into consideration. Expect to negotiate fees that do have a tremendous effect on your trading.
6) Study and Decide- Day trading is very analytical and requires sharp precision. Also, day trading requires being “glued” to the screen a bit. Be objective about your time availability and always use ONLY Risk Capital.
THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS
