Emini Futures Day Trading : Fundamentals And Simulated Trading System
posted in Forex Now |Emini Futures Day Trading : Fundamentals And Simulated Trading System
Fundamental Analysis Fundamental analysis is a methodology for analysis of a company as a viable stock that you want to hold for long term. Fundamental analysis is more widespread in the world of investing since you are going to hold your companies for 10 to 20 years, you do not wish that your companies go bankrupt the next day. Some of the common ratios used are P/E ratios (price earnings ratios) which measures the relative price of the stock to the earnings of the company, the EPS (earnings per share), the debt equity ratio and tons of other ratios. Although I have spent considerable time studying such ratios I discovered that you do not really need such information to be successful in day trading. I repeat, fundamental analysis plays a marginal role in day trading. In fact, most of the time, I don’t follow it at all. If you still have reservations about ignoring fundamental analysis, I recommend trading ETFs (exchange traded funds) such as QQQQ which mirrors the movement of the NASDAQ 100. In essence, you are actually trading the index like a normal stock. Indexes usually have a huge number of stocks in them, making them less susceptible to company specific news. However if you are paranoid, then you might still want to follow the news of the major companies in the index. here is no lack of information and no end to analysis. Knowing the fundamentals might seem cool when you discuss company so and so over a cocktail party, but it will not help you rip money off Wall Street in day trading. Being able to remove fundamental analysis from the decision making process is also one of the reasons why I recommend trading Emini index futures. Paper Trading: Don’t Ever Underestimate it! Paper trading refers to trading with virtual money, you do not use real money. You jot down in your notebook when you bought at what price and why. When you sell, you record in your notebook again why you sold and calculate the profit or loss associated with the trade. If you cannot make money by paper trading, you can forget about making money in real trading. Always test a new trading idea with paper trading first before using real money. Also start with paper trading after a long period of break, to help you get back in touch with trading. Although there is very little difference between paper trading and real trading in Emini, real trading is subjected to slippage and psychological factors come into play when you are using real money. Do not underestimate the impact of psychological factors on your trading. After you have a reasonable method and money management techniques, it is the psychological factors which will determine whether you make a profit or loss. Some traders have created software to paper trade. You hit the buttons like you are doing real trading but only virtual money is involved and no real cash is used. The system will record down the time, price, symbol and the position opened or closed. This saves you the trouble of keeping a paper record. Michael Taylor is a professional trader and webmaster of <a href="http://www.daytradeemini.com">www.daytradeemini.com</a> He regular updates his trading blog at <a href="http://www.daytradeemini.com/blog">www.daytradeemini.com/blog</a> with educational articles and trading records.
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Trading Price Action Be Like the Pros
I can’t think of a trading strategy that is more underused than trading price action I say this with a great deal of confidence Frankly, all you have to do is look at the stats The numbers don’t lie As of right now 95% of all forex traders are not making any money . .This doesn’t mean that the 5% who are making money were born with super extra intelligence or they can tell the future Being one of the 5%, I can safely tell you that is not the case I, just like most traders, had more than my share of losses when I first started trading the forex market . .The real thing that separates the 5% who are having success from the 95% who are failing to make money, all has to come down to learning from your mistakes The 95% just seem to be making the same mistakes over and over again . .One of the many mistakes these traders make over and over again is this ever long search for the holy grail I’m sure you know what I am talking about They feel the need to purchase the thousand dollar trading platform with every imaginable bell and whistle thrown in While visually it may be real impressive, the results leave a lot to be desired . .Your goal as a trader should be not only to make money, but all try to make trading less complicated If you are the kind of person who is flooding their charts 6 or7 indicators, chances are, you are making things more complicated than they have to be . .When you trade with so many indicators, it would be like having 6 or 7 people just whispering in your ear telling you how to trade Who can concentrate like that? . .What’s so stunning is that most people never even think about just getting rid of all those useless indicators that are just taking up space on your charts, and learning how to trade price action It’’s the oldest form of trading, but to many, its like a hidden secret .
Source: www.rsstnx.com
Can Traders Actually Make Money Trading Forex
I know that there are a lot of struggling forex traders out there They must be thinking “do people actually make money trading forex?’ I know when your losing more pips than you are making, it’s pretty easy to feel that forex trading is some kind of mission that is impossible to accomplish But the truth is there are a lot of traders out there who have been successful and will continue to be successful . .The only thing separating the haves from the have nots comes down to the fact that the haves really took their time to learn about trading, while the have nots were only interested in a shortcut . .My guess is that you want to be able to understand technical analysis Well, for that to happen, you are going to have to be able understand the concept of price action Price action is beneficial if you want to learn how to trade with the trend, spot price patterns, find pivotal support and resistance areas, predicting future movement of the price, and just have a deeper comprehension of what is happening in the market . .If you are a trading historian, you should be familiar with Jesse Livermore He became a legendary floor trader at the beginning of the 20th century, just because he was able to the movement of the underlying stock’s price and be able to tell when there was the most opportune time to buy or sell . .The amazing thing is that nothing has really changed since then, all it requires from you is to think outside the box .
Source: www.rsstnx.com
