How to Trade Stocks, Forex and Emini Futures
Trading is usually simple but most of the people make it a very complex game. It depends how you approach it whether for quick riches or stable income every month. Trading wants you to have a positive and a neutral mind. Successful traders follow rules all the time and earn their living trading just two hours a day. Many failed traders already develop their mind of particular direction. Neutrality itself requires that there is no direction of the market. Whenever there is a setup formed according to the given rules, one should act quickly without any confusion and hesitation. What actually happens that failed traders hesitate at the time of signal but execute trade as per their emotions. Here comes the discipline.
Successful trading in futures, emini, stocks, options, forex or any market requires sound strategies and discipline. Discipline has more weight than strategies. Learning the great and profitable strategies will not make you successful unless you have conviction to follow rules religiously. A good strategy can be applied to stock trading, currency trading and emini futures because rules are universal. Technical analysis and price action cover every market. There are some analysts in the market who teach that rules apply to one market only and at particular time. Objective analysis covers every market exhibiting number of opportunities in a week for daytrading as well as swing trading. If you have discipline to limit your risk effectively you can do daytrading or swing trading in any trading instrument. It means if you learn rules of trading you have great exposure to trading in every time frame whether it is emini, dow futures, S&P 500, commodity trading, futures trading, options and stocks. Stock trading itself presents multiple opportunities because there are hundreds of stocks in stock market. Another considerable market is a currency market with great volatility. Currency trading usually called forex trading offers huge potential of income if you are equipped with best risk management strategy. Many large brokers are now offering currency trading requiring very low margin. The important point is how you discipline yourself and control your emotions.
Nobody can deny the importance of stop-loss. People who are afraid of taking small loss incur a big loss and are usually wiped out in just few days. Discipline of taking loss will keep you in the trading game forever if you have profitable strategy. Nobody in this world can win every trade. Some traders are very disappointed after taking loss. They lose control and trade immediately in the hope that they will recover loss quickly. It's a huge blunder. You should come back with fresh mind after spending considerable time away from your computer after making a losing trade.
Many new traders try to trade live immediately after they have learned how to trade and it is a huge mistake because they are playing with their real money. Paper trading with discipline could give substantial amount of confidence over a period of few months. What differentiates successful traders from irresponsible traders is quick decision at right time.