One of the most common characteristics among highly successful traders is being extremely goal-oriented. People are most effective, happy, and not surprisingly, physically and mentally healthy when they have clearly established goals. From the small and mundane tasks, such as cleaning your desk, to more important life issues ranging from child rearing to estate planning, having a goal and making steady progress towards that goal creates a state of mental clarity and a sense of purpose.
That’s the good news. The flip side of the coin is that poorly planned goals can have the complete opposite effect. Once we firmly establish a specific goal, our subconscious kicks in gear to “get ’er done”. This has nothing to do with will power — it’s simply the way we are wired. While establishing and pursuing goals can lead to a higher quality of life, unless they are structured properly, they can also lead to depression and an overwhelming sense of failure. So before we start flipping those switches and the synapses start firing, let’s clarify some sound and solid principles that will become the foundational structure of every goal we set both in our E-mini Trading business and other areas of our life as well. Continue reading "Four Critical Goal Setting Tips for E-mini Futures Trading"→
Trading Price Channels is a dynamic yet easy to learn form of trading that relies on the markets natural tendency to trend. It is a type of technical analysis that provides ideal areas from which to buy and sell. Price Channels also show you where to put your stop-loss and where to take your profit. Here are a few of the best ways to take advantage of information the market freely gives you.
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A â€œLIMIT MOVEâ€, IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
In the 80's, the US T-Bond contract was the most liquid market. The bond pit at the CBOT was so crowded that you could not turn around. There was a bit of intrigue with commodities. It was deemed "not a prudent man’s investment vehicle' — it was for the aggressive investor. It was not a climate for "everyman" as the margins were often high and the moves could be severe. "Everyman" needed a liquid market with reduced margins that would allow participation in the stock market in a diverse manner. The E-mini indices allow a trader to participate in a stock weighted average of a portfolio. Continue reading "Twelve Essential Steps To a Winning E-mini Strategy!"→
Today we welcome Michele Schneider to the Trader's Blog. Michele is going to share with you how she uses the 200 day moving average to trade. Michele "Mish" Schneider is the Director of Trading Education & Research for MarketGauge. She provides in-depth trader training as the market analyst, writer and host of Mish's Market Minute, contributes to several online trading publications a series of trading strategy articles called Taking Stock, and serves as a regular contributor to MarketGauge's free newsletter Market Outlook.
The 200 day moving average may be the granddaddy of moving averages. Simply put, a financial instrument that is trading above it is healthy; below it, anemic. The 200 day moving average measures the sentiment of the market on a longer term basis. This is where major players like pension plans and hedge funds need to look in order to move a large amount of stocks. I display it on all my workspaces proudly, formatted in emerald green and real thick so I can't help but notice. Continue reading "3 ways to the use the 200 day moving average"→
Today I'd like to welcome Markus Heitkoetter from Rockwelltrading.com. Markus' article below dives into what most traders just don't get. Enjoy the article, comment below, and visit Rockwelltrading.com to see what Markus's next webinar event is.
With dozens of indicators, hundreds of chart patterns, and thousands of combination's between the two, it’s no wonder that many traders struggle to find and enter trades with confidence. “Analysis paralysis” is a common problem for many traders, and it can even keep experienced traders from taking good trades. It’s easy to plot a dozen indicators on your chart, but what are they really telling you? Are you able to make split second decisions when there is an opportunity in the market? If not, it’s probably time to simplify your trading.
One of the easiest ways I’ve found to keep things simple, and avoid being a victim of "analysis paralysis", is to use a strategy that I call, "The Simple Strategy".