The Hard Right Edge Of Emini Futures Trading

(QQQ)(DIA)(SPY)(GLD)(FB)

by DeWayne Reeves

"Life all comes down to a few moments. This is one of them." Bud Fox

The Hard Right Edge 

At the corner of Broken Dreams Blvd and Easy Street is where you'll find it. In fact it's staring you in the face right now. Look at your monitor, look at your chart, look at the last candle that printed on your chart, on your monitor, now pat your head three times...what comes next?

That's the hard right edge friend. You'll always find it in the exact same spot (patting your head is optional) but what comes next is not. It's where you earn your living as an Emini Futures Trader. Around the corner, just out of sight, like a fighter pilot in a snowstorm you have nothing to guide you but your training, indicators, and intuition. This is the place where you make the critical decisions that will make you or break you. It comes naturally for a few. Very few. Most of us will have to work hard, learn by the seat of our pants and it's a bumpy ride so strap in and pay attention because what I've got to say just might save your life.

My job is not to turn you into a hero. My job is simply to keep you alive until you learn to survive on your own. Don't get me wrong, base camp isn't shutting down but just as you came into this world alone so shall you trade and so shall you leave. Enjoy the friends, the family, the community, the camaraderie, as much as you can and as oft' as you will, but pay attention in class. Don't think for a moment you can get by on good looks, good humor or perfect posture. When you move from the simulator to live trading the very earth beneath your feet will sHIFT. Hard!

Those drawdowns will become real. What once seemed easy now makes you queasy. Gotta' toss? Put it in your hat. No reason my shiny boots should get ruined. By the way, I'm only half kidding here. The S&P 500 rallied 10 points today during the day session. If you were short the market without a stop the potential damage was $500 on 1 contract or $5,000 on 10. If you're half as smart as I was when I started, you were probably trading 20. That knocked the wind out of your sails to the tune of $10k.

You may chuckle and say; 

"Well $10k isn't that much Mr. DeWayne.
I've done well, I've put away a few shekels in my day, I can take it."       

OK.   For how long?

I don't want to paint the market as an evil enemy or school yard bully, but until you put things in their proper perspective that's exactly how you're going to feel. You will become the king of conspiracy theories. You'll be up on your desk peering into the light fixture looking for hidden cameras with the same fervor as a strung out crack addict mines the carpet for that one little rock they most certainly dropped. How did I become such an expert? Seriously? Uh-huh, that's right. I've preached on 2 continents in 3 countries and when I preach, I preach from my life. Not a book, not even the Good Book. I do quote it, reference it, I even wave it around for dramatic effect, but the message I'm delivering is about a life that was changed. Mine.

When I talk to you about trading you are getting the benefit of learning not from a master, not from a guru or a guy who walks on water, you're hearing the story of a guy who took every wrong turn and wandered down every blind alley imaginable. Am I proud of my mistakes? In an odd sort of way, I suppose I am. Not because of the wreckage I created, but because of the unique vantage point it gives me from which to help others. If I had done 3 simple things in the beginning (as an emini trader) my story would be much different and you would not have access to my 3 Emini Secrets.

I understand that you may be smarter than me, you may have more money than I had, or be more successful than I was, but what you don't have is my experience. I paid dearly for these lessons so please don't cheapen them by skimming down to the "good stuff". This is the good stuff. I said there were 3 things, so let me spell it out. This is what I was told to do, yet failed to do:

1. Slow Down
2. Keep It Small
3. Always Use A Reasonable Hard Stop

I know, a bunch of hooey right?

Or to borrow a phrase from Smokin' Joe Biden - Malarkey ♣

Call it what you will, I just gave you free advice that will save you years of wasted time and many thousands of dollars. Because I give it freely, it may not appear to have value, trust me it does. In fact, if you can find any trading truth, fact, indicator, system, methodology, or concept that has more value (no matter how much you pay for it) David Williams will eat my hat on Live Radio.

Be careful what you Google for, you just might get it. Obviously I was looking for a "man eating a hat" but this was much more delightful and we all needed a break from my heavy handed post. Right?

Now drop and give me 20. Seriously, if you're serious about trading you will take those 3 bullet points and make them your mantra. If you do, your possibility of succeeding as a professional trader will skyrocket. We all hear and read the dismal statistics of new traders, in fact I just quoted them myself a few days ago. In this post I want to bring you hope, not discourage you.

How bad do you want to become a trader? A real trader.

trad·er/ˈtrādər/

 

Noun:

1) A person who makes his/her primary living from the sale of stocks, options, futures, or emini contracts.

If you will do the 3 things which I failed to do, your odds of failing will become as astronomical as the odds of the average man succeeding. Do you want to become a trader? A real trader?

If you never take our Free Trial or never become a CFRN Partner, at least take my free advice. Your spouse will thank you, your banker will admire you and your CPA will clean your clock. (that's a good thing)

Trading Emini Futures Via Twitter

Speaking of Free Stuff, my Handler - Spouse - Banker - Partner and CPA, say I need to knock it off. I may have left out Grumpy Partners. Bottom line is they are ganging up on me. Is that what they meant by "gang banging" in the Presidential Debate? Here's the rub, I love giving away free trades. However, my mortgage, 800 orphans and various other entities say I've gone overboard. Fair enough.

My point all along has been if I'm willing to give you this for free, imagine what you get as a Partner. However, I have to do what is right by the Partners and all others mentioned. We have a meeting tomorrow where we will decide how many trades I can give away each week. It might only be 1 or 2. So give me some feedback. If you follow the Twitter trades and have done well, what markets do you most want to see Tweets on? Their question to me will be, "If they've done well, why haven't they become a Partner?" Quite frankly guys, they have a good point.

If you run the last 2 years of Tweets and check the results or potential of each Tweet, it may run off your chart. Am I boasting? No, I'm helping you understand the other side of the discussion. The S&P Tweet I gave out last week was worth $1,200 per contract if traded stem to stern. Just  a few of those trades and your Partnership is paid for. The trade I had this morning on the Soybeans which I did give in the Live Trading Room (including everybody on a free trial) was a 14 cent move. That is $700 on 1 contract. Michael said "If you want to sell 15.14, I want to buy on the way up."  Bottom line - 10 cents up / 14 cents down inside of 2 hours. That's 24 cents per contract or the equivalent of 24 ES points in the S&P. 24 X 50 = another $1,200 but I didn't Tweet it. We gave it to the Partners in the room, we gave it to those on the Free Trial

We are now in our 7th year at CFRN. For the first 5 years we did give everything away. Wait, I take that back. All of my guests had a product to sell but I didn't. Finally, my Handler - Spouse - Banker and CPA said if you are going to continue the radio program you must reconcile all the time and money that you invest in it. So I did. And it's awesome. And I feel like the luckiest guy alive because everyday you invite me into your home or office. Our broadcast reaches Hedge Funds with alligators in the moat and Kitchen Tables with chickens clucking in the backyard. How awesome is that?

I take no credit. You read about the real me earlier in this post. Those of you who have been around since 2005 have witnessed the transformation first hand. The select few who knew me back in the 80's are truly blown away. I say that I take no credit because I firmly believe it is purely the grace of God. He get's the credit. Howeverer, in 2005-2006 I loved Jesus and Jesus loved me. True story. Yet he never once intervened in my trading. He never once made the market come back to make me whole even though I was trading for Orphans. That's not how He rolls.

If my "faith" was based on my trading I would be an agnostic at best. Quite possibly an atheist on more brutal days. God wants you to use the mind he gave you. Whether it's digging ditches or trading emini futures, since the days of Adam we are required to make our living by the sweat of our brow. You ladies also have that whole pangs of childbirth thing. Ouch. Sorry.

Thank God I rose above it. Nowhere does it say "If you believe, there will be no storm" what it does say, is "If you believe, there will be peace amidst the storm". Bingo. That's everything becoming a Partner is about. You'll still get whacked, you'll still get stopped out, whatever. The difference is you will not only endure it with grace, you will learn from the experience and best of all, you won't blow up.

90% of Emini Traders blow up their account and do not last a year.

The other 10% do well and/or freakishly well.

What will you choose?

The choice is yours...

As opportunities unfold we will keep you posted.

 

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Comments

[Bruce W]

Good article. Makes me want to become a partner. Wait...I am a partner. Boy am I smart!