day trading e-mini

Emini Trading Strategies - Day Trading, Swing trading or long term?

Posted in Day Trading, day trade to win, day trading e-mini, e-mini S&P futures, e-mini sp strategies, learning to trade e-mini SP on February 2nd, 2009 by Current News – Comments Off

By: John Paul www.daytradetowin.com

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Many beginner traders ask me how they should trade the E-mini S&P? Should I start with one futures contract? Should I swing trade or day trade?  I understand that prior to even developing a methodology; one has to decide what time frame they should trade.  I have chosen day trading.

But before I explain why I chose it, let me explain some misconceptions about day trading:  for many day trading means the “sweat” of anxiety, many transactions, and trading from morning until the session is over.
Well, let me tell you about my day-trading:

  1. I trade one to two times a day
  2. I don’t get stressed. I have developed a methodology that allows me to stay profitable for most trading days.
  3. My trading session is done by noon.  I find that there is enough action until noon time.  My trading methods do work in the afternoon. Once a profitable trade is made in the AM session, we take the high road and as disciplined traders take our profits and are finished trading. Why risk our profits for the day, I always say.

I hope to clarify what day trading is all about. In reality, not many have the time or luxury to be glued to the screen all day and trade. I am one of those guys, so I have a methodology that helps me to be finished by 12 noon EST.

As far as my decision to day trade, it was due to a few reasons;

  1. Increasing number of contracts and participants. I have followed the e-mini SP for years prior to deciding to trade it. Over time I saw the number of contracts go from a few thousand to a few millions in a day.  This creates enough opportunities between all the different interest groups of speculators, hedgers, hedge funds, propriety trading, etc to make the ranges high enough for one to capitalize on.
  2. Swing trading and long term trading implies leaving positions over night. Nowadays with complete worldwide economical instability, I rather not.
  3. The complete reversal that occurs these days doesn’t allow capturing long terms moves.
  4. Longer term trading does not allow me to use price action; instead one has to resort to the same old technical analysis…that does not work.

I hope this was helpful. Good Luck in your day trading of the E-mini S&P.

John Paul