Struggling with EMinis

Question:

Dear Toni, I have been trading the EMinis live for about a month, but am struggling to achieve any success. How can you help?

Answer:

One thing to keep in mind is that EMinis do tend to be more difficult to learn than securities. If you have enough capital, I would recommend beginning with them and then making the switch once you are consistent. You can also then trade the QQQQ, SPY, or DIA in smaller risk increments using the futures triggers to begin to ease back into trading futures.

If this is not an option, then consider trading with a simulated account until you are comfortable with your performance level and then begin to trade with only 1-2 contracts, starting with the NQ since it will tend to have the least risk for comparable setups.

No matter what form you security you are trading, however, there is a substantial learning curve. It takes most people at least 6 months to show any real signs of consistency and several years before they are comfortable with their performance. This learning curve is the reason most people fail. They do not come into trading adequately prepared to struggle for that long before they make it. Another reason of course, is that they begin trading without a solid understanding of how to read price action and decide to "wing it".

Even when a novice decides to pursue education, there are so many resources out there, often contradictory, that it can take time to weed out the garbage from those sources which are actually legitimate. Take it slow and be sure to really test out your system before going live. Trading systems can be profitable for weeks to several months and still not be adequate for longer term success, so go slow even after you go live and gradually increase risk over time.

All my best,
Toni