How To Be A Trader

To be a Trader requires a shift in thinking, because rational thought is immediately required to take a back seat. Most professions leave little room for error, yet a Professional Trader is expected to be wrong 30-40% of the time. Imagine a pilot who missed his landing more than once, or an engineer with structural supports unable to bear the load they were created to carry. Both professionals would quickly find themselves seeking new careers. To be a Trader, is to be wrong repeatedly and still collect a bonus.

According to Bloomberg, Wall Street Traders with 10 years experience earn upwards of $1M annually, while their neurosurgeon contemporaries pull down only $600k and are often required to spend as much as 1/3 of those earnings on malpractice insurance. Why? Because the surgeon is expected to get it right.. every single time. The Trader? Not so much...

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Day Trading Rules And Risk Management

Our series on Day Trading Rules will end with this final installment on Risk Management. Let us first turn to Webster for a clear textbook definition. I knew risk management was a serious topic, but perhaps I wasn't aware, just how serious. Feel free to try this experiment at home.

Issue Google the following command > webster define risk management (press enter)

Using the above syntax, you are instructing Webster (the dictionary) to send you its definition of risk management. Who knew Webster had a sense of humor? Look at search result #3. Now that we are in a sober frame of mind, let's dig deeper...

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Day Trading Rules Part 2

In Part 1 of Day Trading Rules we covered the legal and practical sides of Day Trading. In Part 2 we want to move in and take a closer look at specific Day Trading Rules that will affect exactly how we operate our Day Trading business using rule based trading. Topics we will cover include, but are not limited to -

how much capital we risk on each individual trade as well as establishing parameters for both our entries and exits.

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Important Day Trading Rules | Stocks - Futures - Options

Are you an Active Day Trader? If so, there are 2 sets of day trading rules you must be aware of. One set of rules are issued by regulatory agencies such as the SEC / FINRA / NFTA / IRS. The second set of rules are ones you establish as the foundation of your day trading business. The first set are actual laws you as a Day Trader must abide by to avoid fines, penalties or criminal charges.

Most traders find it easier to follow rules dictated by others, even when they seem arbitrary or unfair. It's not simply the fear of prosecution, it's a conditioned response we carry with us from birth. From an early age we are told what to do and when to do it. As we grow older we begin to yearn for independence, fueled by a desire to make our own decisions. Let's address the "easy" list first.

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Emini Futures Most Frequently Asked Questions (FAQ)

The following FAQ List has been compiled from information made available by participating regulatory agencies and major brokerage firms. You may submit additional questions to the author.

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Emini Coach - 5 Ways To Reduce Trading Stress

Let's face it, Trading can be very stressful. In fact, a certain amount of stress is even normal. From the fight or flight mechanism built into us, to helping us acheive under pressure, our bodes were designed by the Creator to handle stress on a regular basis in small doses.

However, we were not designed to run in "emergency mode", 8 hours a day. Living life on the frantic edge will quickly take its toll not only on Traders, but on mere mortals as well. Left unchecked, excessive stress can result in serious physical as well as mental health problems.

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Weekly Chart Roundup

All time highs that just can't stick... The S&P 500 has established a new all time high in the cash market but we are still a few ticks away from a new high in the futures market. The market has presented decent volatility of late with two sided action.

For an Emini Futures Trader, it's not important which way opportunity flows.. what matters is that there is a flow. We have seen 20 point ATR's (average true range) of late coming into this week. I tweeted our followers (@CFRN) Sunday night to prepare for a week of low volatility and tight ranges. The good news is the market still has two days to prove me wrong and it also hasn't been as tight as it could have been.

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Emini Podcast | Episode #1648

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

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Emini Podcast for Tuesday 04/30/13

Emini Podcast | Episode #1647

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

Emini Podcast for Monday 04/29/13

Never Marry A Trade!

What causes "Getting Married" to an emini trade or investment?

Phase 1
Strong unwavering conviction
Lots of research
Fulfilling set-up criteria

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