Day Trading Time Frames and Emotional Strategies

 

Day Trading the ES on TraderPlanet.comThere are plenty of compelling reasons to prefer day trading in the ES (e-mini S&P futures). For starters, it is a highly liquid and leveraged product and the ease of exiting by the close of trade eliminates overnight risk.  Further, profits (ideally) and losses are supercharged and fast.  As great as this might sound to the inexperienced, the difficultly of the practice is largely underestimated.

 

Day trading the ES is most likely one of the most challenging endeavors a trader could embark upon.  This is because there is little room for error; traders must be right about the direction of the market and the limited time window in which the move might occur.  However, for those that have the perseverance to dedicate themselves to the practice, contain the natural ability to eliminate emotions and have enough experience under their belt, day trading might also be one of the most potentially lucrative forms of market speculation.  

 

There are an unlimited number of strategies day traders might opt to apply, so discussing that aspect in a single article is impossible.  Nevertheless, over the years I’ve noticed a few factors that play a big part in determining day trading success, and failure, that are worth sharing.  Hopefully, you will walk away from this with a better understanding of risks, rewards, and reality.

 

Day Trading Is Mental

 

I believe that becoming a successful day trader comes down to instinct and the ability to control emotion.  If you have ever been involved in athletics, you have probably heard the adage that performance is 95% mental and only 5% physical.  I have found this to be true in trading as well, although instead of being physical, trading is technical.  Quite simply, it isn't which oscillators or indicators you use, it is how you use them; perhaps more importantly how you deal with fear and greed as you are charting your trades.  

 

Although we cannot control the market, we can control the environment and circumstances we choose to put ourselves in.  The best way to keep your mental demons in check is to avoid compromising situations.  As a trader, this achievement is certainly impossible but if you can merely minimize the exposure to stressful endeavors, it will go a long way toward trading success....

 

Continue reading this article on TraderPlanet!

 

 

Futures and Options Trading Booksby Carley Garner

What People are Saying about Our Commodity Trading Books

Choosing a Futures Broker and Brokerage Service

Full-Service or Online Trading?

The decision to trade online or through a full-service commodity broker will undoubtedly make a large impact on your bottom line.

Learn More

A Fair Commission Rate vs. Low Commission

To look at commission rates objectively, we must understand the background of the futures industry and how brokerages accept risk for fees.

Learn More

Choosing a Commodity Brokerage Firm

Deciding on a commodity brokerage firm is a significant decision and shouldn’t be taken lightly. Not all traders and brokers are compatible.

Learn More

Choosing a Futures and Options Broker

Most traders in search of a futures broker are concerned primarily with trading platforms, commission, and quality guidance.

Learn More

The Truth about Futures Commission

The goal of futures trading should be to MAKE money, not SAVE it! Discount commodity brokers cut corners that cost their clients time & money.

Learn More

Commodities via Futures or ETFs?

A key difference to trading commodity futures over ETFs is leverage, but there is more to discuss, such as taxes, market hours, and efficiency.

Learn More