subject: Emini Day Trading Requirements [print this page] Emini Day Trading Requirements Emini Day Trading Requirements
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Day trading the Emini is one of the hardest professions to master. It is one of the professions that show whether you are good at your job. The gain in trading shows whether you are successful at your trades by profit or unsuccessful by your loss. However, to many traders, trading is like an addiction. Although most statistics shows that 90% of traders lose money and only a few handfuls succeed, many traders continue to trade the S&P market despite losing their money. To be successful at trading the market one must accurately pick the right trade; this is like picking a needle in a haystack. The popularity of the Emini has attracted many new traders to the market. Many traders use their hard earned money, saving, retirement money, gift, any money they can use to open an account.
To trade the Emini a trader must have at least $5,625 to post margin. Some brokers require more funds to trade and some brokers allow you to use their money to trade as long as you can post the day trading margin. The market is opened from 9:30 through 4:00 Eastern Time. This is the time which most trader start trading. The amount of contracts traded between these times is are high, and the odd of success is greater. However, the drawback is that there is more volatility because during the day news are released and many traders react to the news.
To make a profit trading, a trader must make at least one tick which is equivalent to $12.50. Every four ticks equals to one point, which total to $50. Many traders trading aim to make at least 1 point. It may seem less, but many traders trade multiple contracts which add up the profit. To trade one contract, a trader must post $5,625 to trade, but in today's market many brokers allow trader to post the minimum of $500 to trade one contract and there has been some broker that allow as low as $300 to trade one contract. This may sound like a bargain, but it is highly dangerous to trade this way. Traders are using too much leverage to trade which increase their loss compare to their account size.
To be successful trading, one must utilize a trading strategy that may give him an edge. There are so many ways to be successful. One of the successes is developing a strategy and back testing to ensure that the strategy works. Back testing requires at least one year of testing to make sure that the strategy work and is consistent. Many traders who have made money think their strategy work, in fact it doesn't. The market changes over time and their strategy may be obsolete or not up to date. In addition to success, a trader must be discipline and patient to make their trade. The market moves very fast and volatile. Some traders may panic buy and enter at a bad entry, and some traders may panic sell at sell to quickly at a loss. It is important for traders to research the market before they decide to trade. Trading is very risky and should be practice in a simulated account before going live.
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