Do All Beginning Traders Fail at E-mini Trading?

trading e mini futuresThere is a popular belief that acquiring the know to trade futures contracts, specifically e-mini contracts, is an arduous undertaking and a business destined to failure. Granted, some novice traders who attempt to learn to trade online do not deliver the goods, but with sound training and mentoring it is entirely possible to master the skills to trade e-mini contracts with success .

E-mini contracts have several tangible advantages over their much heralded competition, the Forex market. First and foremost , e-mini contracts are traded publicly so there is a great deal of transparency and liquidity in these markets . Further , the spreads during the trading sessions on the Chicago Mercantile exchange and the other public exchanges are very tight , which is not the case in the Forex market. For that reason exclusively, e-mini contracts enjoy a decided advantage over Forex trading.

Live Emini Futures Trade


But that still leaves us with the problem of learning to trade effectively . There are a broad spectrum e-mini contracts ranging from financial indexes to gold in e-mini futures. Many of these contracts are more widely traded than others and thus have a larger margin of liquidity. Since futures trading is a zero-sum game, which means that for every winner there is a corresponding loser, it is important to have enough liquidity in the contract you are trading. In my opinion , the financial index e-mini provides the trader with superior liquidity and trading opportunities for beginning traders.

At the E-mini Professor Trading Course, we highly counsel starting your trading business on the Dow e-mini contract, usually called the YM contract. This contract has plenty od liquidity for a novice trader and is comparatively easy to learn. I should indicate that each e-mini contract has a distinctive personality and I urge each trade toward learning one contract completely before graduating onto a new e-mini contract. There is a desire for novice traders to gravitate towards the S&P 500 e-mini contract, called the ES contract, in their early careers. The ES contract is the most heavily traded contract in the e-mini world , and it is traded by some of the most experienced traders in the line of work. For that reason alone , I warn to avoiding the ES contract as a initial point for beginning traders. Techniques like money management, contract management, and trade selection are important parts of learning to trade. A beginning trader should not begin trading until he or she is well grounded in the essential topics. Further, I strongly recommend trading on a demo account until a day trader is regularly profitable.

In summary , I believe that a novice trader can profitably learn to trade the e-mini contracts with sound training and mentoring. When a beginning trader is armed with tested knowledge and practice techniques, he or she stands a great chance of succeeding in e-mini trading.

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