Daniels Trading

Independent. Objective. Reliable.

 

10 Things You Can Do to Become a Better E-mini Futures Trader

by | Tips & Strategies

Update – this post was written before the launch of CME’s newest product – the Micro E-Mini. Here’s a link to a Micro E-mini resources page.

Guaranteed to be a better trader? Well, there are no guarantees; however, below you will find ten suggestions that, in my opinion, can only improve your knowledge of trading. If your knowledge quotient goes up, perhaps that puts you in a better position to become the E-Mini futures trader you wish to become.

  1. Read at least one thing each trading day. Learn about how a particular tool, method, or strategy works. Do you have to apply each one? No! However, learn as much as you can.
  2. Build your investment book library. Go online. Find trading advice books and develop different trading ideas, then test them in a paper trading account. We all have different personalities so what works for one person may not work for another.
  3. What kind of trader do you wish to be (or already are)? Write it down. If you can’t identify your trading style or path, it will be difficult to be successful. Be ready and able to articulate this to anyone.
  4. Focus on a sector or specific market. In my opinion, the Live Cattle futures trade differently than the E-Mini S&P 500 futures. While it is possible to become knowledgeable about a diverse range of futures markets, if you are a new trader, try to sharpen your focus.
  5. Keep a trading journal. I have written about this before, and I think it bears repeating. It is critical to keep track of your trading. Note the winners and the losers. What happened to cause each result?
  6. Develop a method. If you can’t articulate why you entered or exited a futures trade, then you probably should not have done the transaction to begin with.
  7. Practice sound money management. Understand how much of your investment you are putting at risk. Too often I see clients come in and leverage the entire account for one trade. It’s great if the trade works out, but if it doesn’t, you can be wiped out in a matter of minutes or days.
  8. Get educated. There are countless courses out there that may improve your trading skills. Do they all work, no? Is it possible that there are some which may be in line with your trading style and current knowledge base? Probably. Even the best and most experienced traders will tell you that they learn something new every day.
  9. Practice as much as possible. If you are working with a new strategy or technique, practice by paper trading. Don’t put up your investment capital to experiment with something unfamiliar.
  10. Trade with a clear mind. Before you sit down to trade (or contemplate trading) focus on going in with a good, positive attitude. In a bad mood, not focused, or distracted? Go for a walk. Do anything but sit down and fork over your hard-earned money.

Basic Training for Futures Traders

About Drew Rathgeber

Drew began his career at one of the nation’s largest physical spot bullion dealers in 2003. From there he made the transition into commodity futures in 2006. Because he has worked on both sides of the fence, ‘Spot’ and ‘Futures’, he has an astute understanding of how the precious metals markets can work for Retail Traders, Hedgers, and Commercials. He can use this knowledge to help investors and traders alike. Drew also has years of experience in electronic software execution, automated systems, hedging, newsletters, options strategies and outright futures contracts. Through his expertise in these areas, he can guide you and answer all of your questions while teaching you how to manage risk.

Today you can see Drew working in many different capacities in the commodity futures markets. You can even see his weekly IMA Live precious metals commentary every Tuesday and Thursday or sign-up for his weekly newsletter, the “Rath Overlay”, which highlights commodity futures markets and possible future events using his time-tested yet simple trading strategy.

Drew grew up near the popular surf beaches of Southern California. Drew is still an avid surfer and snowboarder. Currently his latest craze is United States Masters Swimming (USMS). He is a nationally ranked swimmer and enjoys competitive open water distance swimming.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.