E-mini Trading: What's The Secret To Consistency?

By Author: David Adams
Total Articles: 41
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Do the same things; at the same time; every time; and you will stand a better than average chance of being a consistent trader. According to often quoted statistics, 50% of all e-mini traders fail out of the gate; another 40% of the e-mini traders go through a period of “boom and bust,” never quite achieving that consistency they need to stay in the business. And finally, there's a group of 10% of the e-mini traders that learn to trade consistently and profitably.

There isn't a single characteristic that I could identify upon meeting an individual that would give me reason to think that he or she could be a consistent e-mini trader. Consistent traders are a varied group in terms of background and thinking (outside the world of intraday trading.) But this group of consistent traders share a common ideological philosophy; they trade the same way (though they must adjust daily to changing market conditions, but utilize a consistent trading philosophy,) they are able to execute trades based upon what they see on a trading chart and not their emotions, and finally, they have a commitment to excellence and consistency ...
... in their e-mini trading philosophy.

Some characteristics I often spot early in a new e-mini trader’s career that might indicate a high potential for consistent trading success might be:
• These individuals have a commitment to a system and philosophy.
• These individuals do not let emotions overtake their trading judgments; it is fair to say that we all experience a wide range of emotions when trading; it's how you handle those emotions that is of critical importance.
• Successful traders are those traders who are typically an hour early to a trading session and are consumed by learning more about scalping or intraday trading.
• Resilience; there has been much written in recent years about this quality in people and our inability to satisfactorily measure an individual's resilience. Resilient traders are those traders who are able to forget their last trade and concentrate completely on the trade at hand. The last trade is irrelevant, only the current e-mini trade is of any importance.
• Successful traders use sound methodology and empirically tested trading systems. There are a wide variety of trading systems on the market, some are good, and a large majority of these systems contain information you might learn on a basic Google search.

Sounds pretty easy, and my estimation, define a successful and consistent trader. However, implementing each of the above ideas along with a personalized set of trading goals is no simple task, especially when battling with your emotions. There has been much written in recent years about removing your emotions and your current emotional state from all trading situations. I must admit, I have been totally unsuccessful in removing emotions from my trading methodology and trading results. On the other hand, I still experience the emotions, but do not feel compelled to act upon my personal emotional take on each e-mini trade set up I consider. I take each loss personally, and savor each gain with satisfaction. Incidentally, 30 years of trading has made me a reasonably consistent trader.

And I think that is the most important concept for most traders to implement into their trading programs. The trading game is all about consistency; sure, there are traders who have extraordinary days in the market, but more often than not these days do not last long as the market changes complexion and mood and a dazzling interpersonal litmus test that all traders must learn in their trading career. There are good times, and there are bitterly disappointing times in a traders career. The secret to success is to maximize the good times and minimize the bad times. It sounds easy, and it ought to be easy; but dealing with your emotions and any trading situation is as challenging a task as most individuals will face in their lifetimes.

In summary, I have outlined some of the characteristics I have observed and successful and consistent traders. I have maintained that the secret to a successful trading career is not overly aggressive trading that can result in very impressive results on a given day, but less than impressive results over a longer period of time. Consistent traders adjust their trading incrementally each day to meet the continuing challenge the e-mini markets present.

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