Here’s my Emini trading methodology in 12 steps. These are the rules I trade by – they keep me on the straight and narrow. Use the links in blue to learn more about each topic.
#2 Focus on the first hour of trade and stop trading after making a small profit (4 Emini points). Over-trading will kill your profits.
#5 Volume is the fuel that drives price. Better Momentum measures the waves of demand and supply volume and is superior to a price-based momentum indicator.
#6 Price movement alternates between cyclical and trending phases. Better Sine Wave measures both price cycles and trends and is much better than a moving average.
#10 The fastest way to become profitable is to stop repeating your most common mistakes. Track your trades with a trading log and focus on eliminating errors.
#12 Trading is the hardest thing you’ll ever try to do and most people fail. So toughen up, trust your indicators and focus on becoming an unemotional, consistently profitable trader.
Why a Manifesto?
12 Years ago my trading needed a Revolution.
Although I’d read and tested practically everything, my trading was going nowhere. Sure, I’d had some huge winners – that made me think I could live off my trading – but I’d also blown up my account a couple of times. I was in a slump. Time to pause, take stock, get back to basics.
What had I learned? What did I really know? What was solid? What did I have to do to be consistently profitable, day after day?
Well, this is what I decided was important – the rules of profitable trading. And this is what has turned my trading around. Every revolution needs a manifesto and this is my Emini Trading Manifesto.