A great deal has been written about trading over the last ten years since online trading has increased exponentially, with there being no shortage of trading systems and methodologies utilized by individual traders. Although traders compete against others within the financial markets on a daily basis, trading itself is an individual occupation which will rapidly reveal to a trader their qualities, strengths and their weaknesses. In this article we are going to explain why some traders succeed at emini scalping and others fail miserably at this form of index futures trading.
Emini scalping is a method of trading where the futures trader will enter a position and quickly exit the trade, profiting by "scalping" only a few points. The trader is not looking for huge gains, but only for a successful trade with a small profit. The emini trader may execute large numbers of trades throughout the trading session which can add up to large gains at the end of the day.
Any method of trading requires a commitment to discipline, no matter if the market participant is day trading stocks, swing trading options or scalping emini contracts. If the index futures trader is going to utilize a emini scalping method, he must be committed to this method and not change his trading system once this commitment has been made. A trader may start the day planning to only scalp trade the entire day and enter their first position. After they gain a few points and knows they should exit the trade, they decide to change it to a day trade and hold longer since the market appears to be running.
Their excitement quickly turns to disbelief when the market quickly reverses and turns against them, taking back the points they once had and are now underwater on the trade. Disbelief quickly turns to frustration as the market goes lower and eventually turns to fear as the market continues to go further against their position. At this point the trader exits their position with a loss and anger sets in as the trader realizes if he had stuck to his original plan of only scalping a few points, he would have been profitable.
Scalping the emini futures market is a profitable method of trading and is utilized with great success by veteran traders. Only by purchase to a system of trading and following the rules of that system will a trader be successful. Changing methods after purchase to a trade will sometimes yield profits, but will eventually lead to disaster when the trader lacks the discipline to follow the rules of the trade. Greed, desperation and lack of discipline are most often the culprits that spell the demise of a trading career.