Trading futures is like riding the bull. Just wanting to do it is not enough. Futures markets have the highest failure rate among novice traders. On the other hand, they are tantalizing traders with the ability to trade with unparalleled margin. If you were able to read the market pulse, this could be your personal semiautomatic money machine. Sadly, it is not that easy…
But there is more to it. For instance, trading the EMini could be transformed into tracking the EMini and using the derived trading signals for stock entries. This system doesn’t stop with serving stock day traders. One could use it for finding safe entries into longer term plays in the stock market. Watch out for a possible stock investment with growth potential and enter the market when the whole index gives another intraday buying signal. Your favorite long-term stock will likely go up with the flood. This stock trading system would allow for ultratight stop losses.
Basically any trading has to combine a relatively cheap entry price with momentum in the right direction. It is this combination that gives the start advantage, which is necessary for using the stop loss method. If you are able to use stops without being killed by the many small losses, you are able to trade the trend. If you are stopped out, it isn’t a trend anymore. If not, you are on a trend. Using stops puts you almost automatically on a trend.
This is the core secret of trend trading! You just have to keep the small losses in check. Here we have a futures trader who specializes in using the small pullbacks in a longer running intraday trend to create cheap entries in ongoing trends. This trading system is especially for the EMini, but it works also well for other markets.
The extra benefit offered here additionally to the system itself is a trading room where you can watch a successful day trader over his shoulders. Perhaps this is even more worth than the system itself.