There are an adventurous few who plow headlong into trading with the style and grace of a Brahma bull. These are the brave few who neglect to take the time to develop a trading methodology and personal self-discipline to trade effectively. The end result is almost always the same; complete and utter failure. Of course, this group of people seem to trumpet the pitfalls and difficulties of trading to anyone who’ll listen.

I hear stories like this, and similar stories, on a consistent basis. People tell me they knew “so and so” who tried to trade and lost a fortune. It seems everyone knows someone who has lost a considerable amount of money trading in the futures market. Unfortunately, there is a never ending supply of those adventurous few who plow headlong into trading with the style and grace of a Brahma bull. So the story perpetuates itself over and over.

I’d like to take a moment with these frightened souls and explain to them that there is a controlled and methodical technique for profiting in the futures market. You don’t need to charge into the markets like a mad bull.

But for many, the damage has been done and rumor can be much more powerful than fact. The average American is, by nature, averse to excessive risk. Most individuals work hard for their money and don’t care to fritter it away carelessly. As futures traders, and educators of futures traders, this is the problem we face.

Of course, there are risks associated with trading e mini futures contracts, and deliberate money management techniques must be implemented along with very exacting trading technique in order to be successful. In short, it takes discipline and experience to be a successful futures trader. But it can be done.

There are a large number of successful traders in the United States, but they seem to be a quiet bunch and go about their business without fanfare or accolades. These folks are interested in making a great living and, by and large, do so without braggadocio or drawing excessive attention to themselves. Needless to say, there are a few braggarts out there. I always seem to meet them at cocktail parties and endure hours of explanation on their trading technique and the millions they have made in the market. I seem to attract them. I don’t know why, but cats seem to feel the same way about me. I prefer the cats.

The point of this article is to emphasize that well controlled trading is possible and profitable. Individuals who equip themselves with the proper knowledge, training, and mentoring stand a good chance of success. They just don’t know it because they’ve listened to the crowd of mad bulls who charge into the market. I wish it weren’t so, because trading can be such an enjoyable profession and creates a wonderful sense of self satisfaction. I feel that we, as trading educators, have failed to get the word out on responsible and profitable trading. For this reason, trading is perceived as a risky and foolish endeavor; better suited for mad bulls.

My goal is to responsibly educate the public, whether they trade not, that rational individuals make a living trading in the futures market. Whether people choose to trade not is up to them. But I would like for the public to have a more rational view of the trading profession. We are not the greedy Wall Street types, nor are we excessive risk takers. We are a group of people who have learned to control risk and embrace it to our advantage. In short, we need to dispel the notion that futures traders are mad bulls.

- About the Author: I am a long time retail and institutional trader who now only trades part time, usually in the morning. I enjoy writing informational articles about my style of trading so others may benefit. Would it be convenient to recieve valuable trading tips every night in your email? You can sign up for our free video series by Clicking here These videos contain advanced trading strategies and will enhance your trading knowledge immeasurably. Best of all, they are free! So get your free videos and start trading like the pros. Article Source

I am often asked about the potential to make money in the trading business, and it is not an easy question to answer.  Above all, trading takes discipline and experience, so the learning curve can be very steep if you approach it without the proper training and mind set.  Further, a well trained ES emini trader has to learn to control his/her emotions, which is easier said than done.  The always dangerous feeling of greed can be an account-buster if you get sloppy or your technique falters, which is often the result of overconfidence.  The result of overconfidence is entering shaky trades or poorly thought-out trades.  Overconfidence in your ability is a very real hindrance that can cut into your earnings.  The good news, on the other hand, is that with proper training and self-discipline you can be a very effective trader.

But you said you were going to tell us home much we can make…

Initially, you may may want to stay conservative and only trade a single contract, and that is a very good idea.  I seldom risk more than 5% of my balance on a given trade.  As a trader I am looking to capture whatever the market has to offer, and for me that is about 5-7 points.  Those are my goals on the ES emini contract.  I think they are realistic and attainable goals.  Trading is not a get rich quick scheme, and if you approach your trading like you need to conquer the market every day you will quickly learn the wisdom in this thinking.  I prefer to pass on a trade that I don’t feel confident about than take a trade that I am not comfortable with, or my trading methodology doesn’t confirm.

One point on the ES Emini is worth $50.  There are 4 ticks in one point, so each tick is worth $12.50.  Logically then, we can surmise that each tick is 1/4 point.  Trading one contract and shooting for 5 points would yield $250. (5x$50)  This is only trading a single contract, of course trading two contracts would double the amount you can make, it also doubles the amount you can lose, and that fact is worth considering.

Whenever you consider how much you are making it is wise to consider how much you could lose.  There is no 100% trade, there is always a chance any trade could turn and go in the opposite direction you expect.  Of course, we always have out stops in place, but on this trade I would probably set the stops somewhere around 3 points.  My exact stops would be determined by the quality of the trade, but I am comfortable at that level.  So you are risking $150 dollars on the trade.  Is the trade worth $150?  If it meets the criterion in your trading methodology, sure it is…and you take the trade.  So you have risked $150 in order to make an unknown amount, or whatever target you set as your profit level.

I think you can see that “how much money can you make?” is a tough question to answer, at face value because the amount you can make is unlimited, but so is the loss.  That’s why experienced traders scale in and out of trades and use stop loss order and limit orders, they plan for the unexpected.  I feel I can take at least 5 points a day out of the ES emini, most days I do, some days I do far better, and every now and then I do far worse.  That’s the way the game is played, and with some skill and training your expectations should be the same.  Depending upon your skill, you should be able to do the same thing is you trading, but don’t approach trading until you are committed to learning a system and have the self-discipline and emotional control to execute the system you have learned. Then you will know how much you can make.

I endorse a state of the art trading program for beginners at Trading Concepts, Inc It’s an awesome product that will have you well on your way to success. Plus, it has a money back guarantee…you have nothing to lose and thousands to gain.

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