There are thousands of competent Emini traders trading the futures markets. Futures are a probable trading instrument for success and much less complicated than trading stocks or options. But, day traders still need to be aware that there is a risk of loss by Emini trading and without proper day trading strategies, there can be substantial loss.
Emini trading is very lucrative, yet if not done properly risky. But if done correctly, the risk reward ratio can be in your favor. As an Emini day trader, one needs to be aware of what they are doing, if they plan on having success. One should have day trading techniques, implementing proper money management in place to reduce the actual risk of futures trading. In addition to money management, other strategies that can help eliminate risk are wise trading times. Normally, best trading times are between 8:30am-10:30am and 12:30pm-3:15pm, Many prefer the morning session. Lunch trading can be dangerous and trading the Emini, it breaks may day traders strategies.
With the Emini, there is always going to be a seller (bearish trader) and a buyer (bullish trader). The buyer and seller are both under obligation to pay for the asset traded. The ultimate goal of a Emini trading is greater/quicker income compared to standard stocks. Emini trading allows trades to carry massive leverage in liquidity. A Futures trader can trade long or short which means buying and selling the Emini futures contracts.
Trading futures and specifically the Eminis is a preferred online day trading instrument because the benefits of taking long (bullish) and short (bearish) positions in the market regardless in the direction it heads. If the Emini trading trader purchases a contract, the trader does not take delivery of the future good. The trader receives a profit or loss in the gap or distance traveled the contract makes from the time of purchase to the time of sale.
The index trader speculates price using his/her day trading strategies and does not have actual ownership of a boat load of futures corn or wheat. For example, when a online day trading the commodities or future markets trader buys a contract for, let’s say the commodity of wheat, the index trader is obliged to provide wheat at the close of the contract. If the futures or commodity contract is closed earlier than the online day trading session maturity date, the trader takes the profit or loss depending on the final price sold.