Trading e-mini futures for a living is not an easy task. Most traders who embark on this daunting journey end up exhausting their capital due to lack of discipline and knowledge. It can cost a trader a small fortune before he learns the ropes and by that time, he often only has barely enough left to be able to trade with calm and certainty. The smaller the account, the more risk a trader will take. That trader will invariably lose everything and be out of the game. Big bets fail over the long run, much like the hare loses to the turtle.

THE WINNING MATH

The winning math is simple, the execution a whole other story. Let's use NQ (NDX e-mini, a favorite of the Live Monitor) as an example. Current intraday margin is at $1750 per contract, each point is $20, broken into four ticks of $5 each. A trader with a $5000 account booking an average of two and a half points a day, or $50 per contract, will make $12.5 k in profits over 250 trading days. That is a 250% return, if trading every day of the year the markets are open. But I can assure you that 90% of futures traders with a $5000 account won't be satisfied walking away from their computers with such a "small" profit. However, the trader with a $100k account who trades 10 lots at a time will be content with those same two and a half points a day, which will give him $500 on average, and potentially $125k a year. That simple difference in mindset separates "casino trading" from the professional approach.

THE PROFESSIONAL APPROACH

Of course, there is a catch, and it is the risk/reward ratio. You can't just click a mouse and wait for those two or three points (or more, see our performance chart). If you are wrong, you can wipe out an entire week or month's work. Protective stops must be "tight" in order to protect capital, but not so tight as to get "stopped out" repeatedly. The answer lies in the accuracy of the trade entry. A good entry should not require a "wide" stop. If you are wrong, you should be out of the trade quickly and with minimal loss so as to make the next trade more than just a catch up session. There are times when the markets move sharply one way and stay that way. Those days are welcome since they often provide an extra boost to the bottom line. But you cannot count on those days alone to make a living, since they are the exception to the rule. Furthermore, they tend to alter a trader's control over his emotions and when the chop re-emerges, as it invariably does, he gets stopped out on most trades and loses precious capital. Remember, you are playing in a crowded field where hedge funds with large accounts "scalp" every tick. That is where the chop comes from and you need to know how to navigate it. Contrary to public opinion, there is a method to the madness. This is where the Live Monitor comes in.

THE LIVE-MONITOR SYSTEM

We teach traders patience and how to spot higher odds entries. We trade sparingly, sometimes only putting on one or two trades a day. In the long run, this is the only approach that works. You leave your emotions at the door and focus on the task at hand. We are here to help.

Come and join us with a free trial and see for yourself.