E-mini Trading Basics
The Skinny on CME E-Minis - Part 3
By Jarius Elliott
Nov 27, 2006 - 10:37:00 PM

Begin With the End

Once you've begun to interview brokers your financial; trading goals and objectives will become crystal clear to you. This is a good thing. The more you think, reflect and plan your trading activities the more you will come to appreciate the potential for success in this field. You will be motivated and encouraged by the opportunities and advantages on your plate. I also know that you will grow a respect and an appreciation of the markets and their vital role in the global market. You will be a player in a global sense, even if that is a miniscule role - you and a million others like you keep this vast enterprise moving forward while, hopefully making a profit.

At this point you will need to seriously consider your level of expertise and whether you need to augment that expertise with further education. The markets are open to the novice but that makes them in no way friendly. As in any other speculative endeavor your entrance to consistent success as a trader will be purchased by your commitment and pursuit of as much information and knowledge as you can obtain. This is not the place to cut corners. Understand and accept the fact that training is a good and necessary thing. Research the web. Find out what's available in training, coaching and guidance at a price you can justify. Look for training materials that:

Teaches and explains a reliable trading methodology
Guides you in choosing a solid trading platform
Gives you a well thought out financial/trade management strategy
Helps you to manage your emotions during trading activity
Provides useful and consistent continuing education
Perfect Practice Makes Perfect

Once you've satisfied yourself that your trading education is on a firm foundation it's time to practice and practice some more and when I say practice I mean paper trade until you get it! Daytrading and investing offers the unique advantage of allowing any trader the ability to test their mettle, theories and emotional responses in a risk-free environment. It was reported that the latest shuttle crewmembers spent over five years practicing construction of the space station annex! Five years. While not as significant as maneuvering multi-billion dollar components in zero gravity, your ability to know the trading environment, your emotional responses to the inevitable stresses of day-to -day market movements and the nuts and bolts of the electronic trading platform is critical to your success as a trader. Don't even think of jumping into the E-Mini's without this invaluable experience. There are innumerable simulated trading outlets, most without a cost to you, so there is no excuse to neglect this important activity.

There you have it - E-Mini's de-mystified. Stripped bare. They are a great alternative to other trading vehicles offering you liquidity, nearly around the clock access, the ability to trade electronically, which eliminates the need to send orders across numerous markets for the best price. As a trader you can see the E-mini's with any trading strategy you feel comfortable with. You can daytrade, swing or position trade - the same principles apply. So the bottom line is the E-Mini’s are not 'skinny' at all! They are fat will advantages and benefits for the trader who is prepared to take advantage of them. Once you get your arms around the basics of E-Mini's they become less of a mystery and more of a powerful tool for making money.