Investing in the emini futures market is extremely volatile and liquid which makes it a arena that discipline and internal control will ultimately determine whether the trader is effective or not. The first step that a new trader should bear in mind is taking a look at their self or take an internal inventory. To be successful at emini market success, the trader must first obtain a system that is correct for them and one that fits their personality.

In order to develop a system like this, he must first take a inventory of himself and his skills: his personality or temperament, time constraints, available resources, weaknesses and strengths. Without first taking this personal inventory, the trader can never hope to develop a index futures trading methodology that is correct for them.

Important Considerations

How much money do they have on hand that can be used to trade and available for risk? Absence of funding is a cause of key difficulties for rookies. If satisfactory funds are not on hand then correct position sizing cannot be attained and this is a vital segmentpart of a profitable trading system that goes largely disregarded.

Does the trader possess satisfactory computer skills? If not, a computer class should be taken to develop computer adeptness. Losses are part of trading and unavoidable. How well does the trader tolerate and handle losses?
There are many vital issues that the trader must bear in mind before entering the index futures markets. One sginificant consideration is time. If the trader has a full-time job during market hours it will be almost impossible for the trader to access the markets during the daily sessions. However, it is possible for the trader to implementimplement an automated system that will buy and sell emini contracts automatically. However, this type of system is usually reserved for the trader that is experienced and already has the required skills to be successful with this type of trading system.

The trader’s purpose when trading the index futures market is another very important charactersitic of the market. The trader cannot develop a successful trading system for making money in the futures markets unless he first comprehends what he is wishing to achieve. Determining his objectives and having them clearly in his mind should be major task in developing a system with almost half the time spent designing the system.

Determining how active the trader wishes to be in the market is another very important part of becoming effective. Does the trader have a long term position that involves holding futuresindex futures contracts for an protracted period of time or does the trader wish to use the swing trading or day trading form of emini index futures trading, where the time periods are much shorter than the long term form of trading?

As you can perceive from the brief summary above, there are very many different characteristics of index futures trading that must be measured before ever approaching the market. Taking a self-inventory of your personality and available resources is the first step a new trader should take in system development and trading success.

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