1. Don’t trade when the U.S stock market isn’t open
Even though the contract is open for trading long after the stock market itself has closed that doesn’t mean that you should trade it. The contract is the most active when the market is open and as a result that’s when the vast majority of trading opportunities are going to occur. So it would best to limit your trading to only that time.
2. Watch the Dow Jones
When trading you should keep a window open that displays the current price of all of the 30 stocks that comprise the Dow Jones. I say this because that window would act as your thermometer for the emini dow as it could forecast future movements in the contract or keep you from taking bad trades. Think about it like this if 25 of the 30 stocks are down on the day its probably not a good idea to buy the contract.
3. Be patient
When you trade the you need to be a sniper. You need to wait patiently until a clear trading opportunity arises. Don’t feel like you constantly need to be in a trade because its that “I need to be in on every single movement” mentality that is the undoing of so many would be traders. If you are patient, calm and stick to your trading plan then you will have no worries.
4. Protect your capital
If you want to be a trader that makes it and not one of the 95% that fail then you need the master the most important part of trading. Which is to always use proper money management which means risking no more than 3% per trade. Risking more than this is unwise because even though you would make more by risking more you could also lose more which is unacceptable because all real traders know that their number one priority is to preserve their capital.
Trading the emini dow can be extremely lucrative if it is done correctly. Don’t treat trading like a video game or playing the lottery or you will fail. All successful traders treat it like a business and if you do the same you will be counting yourself among them sooner than you think.
Do you want to quit your job and make tons of cash trading full time? Do you want to be able to live your life on your own terms and have all the free time you want? Do you want to be able to trade any market on any time frame?
If so then visit beatwallstreetnow.com.
Jason Madison is a New York based independent trader that has been living exclusively from his trading income since he was a college student. Jason currently trades in the stock, forex, commodity, and futures markets in addition to being a freelance writer.
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