A great deal has been written about trading over the past ten years as online trading has grown exponentially and there is no shortage of trading systems and methodologies used by individual traders. Although traders compete with others on a daily basis in the financial markets, trading itself is an individual activity that will quickly reveal to a trader their qualities, strengths and weaknesses. In this article we are going to explain why some traders succeed in emini scalping while others fail miserably in this form of index futures trading.
Emini scalping is a trading technique in which a futures trader opens a position and quickly exits the trade, profiting from “scalping” only a few pips. A trader is not looking for huge profits, just a successful trade with a small profit. An emini trader can make a large number of trades during a trading session, which can lead to large profits at the end of the day.
Any trading method requires a commitment to discipline, whether a market participant is trading stocks, swing trading, or scalping emini contracts. If an index futures trader is going to use the emini scalping method, he must be committed to that method and not change his trading system after that commitment has been made. A trader may start the day planning to trade only the scalp all day and take their first position. After they gain a few points and know they should exit the trade, they decide to change it to a day trade and hold longer because the market seems to be working.
Their excitement quickly turns to disbelief as the market quickly turns around and turns against them, taking back the points they once had and now underwater in the trade. Disbelief quickly turns to frustration as the market declines and eventually turns to fear as the market continues to move further against their position. At this point, the trader exits his position at a loss and anger sets in as the trader realizes that if he had followed his original plan of scalping only a few pips, he would have been profitable.
Scalping the emini futures market is a profitable trading method used with great success by experienced traders. Only by committing to a trading system and following the rules of that system will a trader be successful. Changing methods after a trade is sometimes profitable, but will eventually lead to disaster if the trader lacks the discipline to follow the rules of the trade. Greed, desperation, and lack of discipline are the most common culprits that kill a trading career.