Why You Must Have A Trading System In Place
Crucial Guidelines for Structuring a Index Futures Trade Execution Platform
When we are new to futures trading, frustration may get the better part of you if you have no prior practice in trading the financial markets. Very often what occurs, is green traders open a trading account to initiate emini futures trading and after a few weeks they have lost their whole brokerage account due to lack of trading know-how. The index futures market is extremely unpredictable and demands that a trading system and rules be in place for better odds of profitability.
Inexperienced emini futures traders must all track the guidance of established futures day traders and implement the use of mechanical trading platforms that are built to do away with the human elements of emotion. Numerous knowledgeable emini traders build their own rules based trading platform using indicators and chart formations which have been confirmed to be profitable for them in the past and only executing trades when the trading platform indicates that the emini market has reached a level that increases the chance of a trade being successful.
However, most new emini traders do not hold the know-how or skills to develop and put into operation a rules based trading platform that experienced index futures traders already have in place. As soon as inexperienced index futures traders discover that reliability and to trade successfully will only come about by tried emini trading methods, rookie traders usually purchase a emini trading system or join a emini futures trading room that has proved successful for others and utilize this system until they achieve the knowledge and competence to structure and initiate their own futures trading system.
Reputable trading systems or methods designed and utilized by another are ideally means for a inexperienced emini futures trader to trade the market in real time and execute profitable trades until such time they can build their own rules based trading system based on their preferences and risk tolerance.
When the trader has chosen his platform and programmed it to turn out optimum results he has to begin the testing cycle. So as to try out the system it has to be put through the simulation process utilizing live market numbers feeds. Real money is not used during the simulation since the index futures trader is not yet sure how his trading platform will work alongside the emini market. The trading system must be tested against the live emini market for a progression of weeks until such point a trading pattern has been recognized and results assessed. When the trading system is considered worthy and supplies the key positive percentages against the futures market the emini futures trader has now created a successful trading platform that will repetitively yield gains.