Emini Day Trading Rules For Successful Investing

by Bullhunter on July 15, 2010

Discipline is very important in any form of stock market investing, much like it is in the military, where simple logic or common sense proves the case; the military could never work under democratic rules, but it does work well under discipline and fascistic rules.

Day Trading RulesBasic day trading rules are much the same, once you have the plan, you should not confuse your homework with the execution plan.

Homework requires a lot of thinking and planning, but executing the trade requires observation and following the rules, no thinking!

Emini Day Trading Requires Methodology And Tactics

The extreme complexity of online charting packages and stock market tools would have you believe that there has to be a lot of thought taking place in the trading business. The fact is that these tools are used for planning the trade and the whole trading plan, but when the trader places the order there’s no more judgement on the markets.

The trader looks at the trading calendar, figures out volatility and the impact of news, then looks at important price levels on the weekly charts to see I they are relevant for that day. He then makes up his mind as to whether he should buy dips or sell rallies, after that he will have a clear trading plan for the day.

Specific Day Trading Rules

Wait up to 25 minutes for the trade to prove itself – a lapse of 25 minutes is a kind of stop loss order.

Be out of the market during the first hour on unclear direction days.

Use the first hour high and low as well as yesterday’s high and low for possible turning points today, if the trade goes well you should get out near these levels.

Count 30 minute bars, 3 large, consecutive up or down bars often make the first leg of one trend, it is considered as a very likely top or bottom and stops should be tightened once these levels have been reached.

Don’t take trades during the mid session timezone, participation is lower and trends hardly ever develop.

Emini Trading Rules Are Statistically Proven

The markets do adhere to these day trading rules more often than not, exceptions to these rules, are indeed the exception to the statistical rule and nothing more. These rules help develop an emotionless trading plan that can stay immune to minor price volatility and panic attacks that are reflected in the price.

There are trading mentors that provide premium, advanced training, which is much more detailed and sophisticated than the above day trading rules. If however you can’t afford such efficient, premium stock market education, at least stick to the above rules and it will help you somewhat.

Of course the premium educators do something unique, they help remove the emotions out of your trading, and that is something no book or articles can ever do! It’s like going to the doctor and getting advanced therapy, one that exactly fixes your health problem and you get your life back.

Emotionless trading with discipline and advanced homework techniques is imperative, but always kept separate, that’s what real emini trading is all about!

Guest Post by..
Scott Smith @ investingthestockmarket.com

The Bullhunters Guide
Universal Wealth Creation © 2004 – 2010

{ 22 comments… read them below or add one }

Isa July 15, 2010 at 5:57 pm

Came here from Sean’s alexa webinar page and am glad I did.
The specific day trading rules are sometimes forgotten in the heat and excitement of the moment. It would do well to jot them down so not to forget.

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Jo Carey-Bradshaw July 15, 2010 at 6:10 pm

Hello Sean and Scott,

It’s been a while since I have visited this page, and as soon as I got here I decided I am going to rectify that ‘quick, smart and in a hurry’ as Major Payne would say. I immediately thought that the Emini Trading Rules as described above fit perfectly with a great many of my daily tasks in spirit. If this is the process it takes to emulate Bullhunter’s success with stock market strategies, then as I apply the concepts of ‘having the plan, doing the homework, and then just executing the plan…’ I will actually be opening up the way to enacting the same principles in a lot of new ventures. Thanks both of you.

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Cathy Howitt July 20, 2010 at 2:57 pm

Very well said Jo. You are spot on when you say “having the plan, doing the homework, and then just executing the plan”. My sentiments exactly when you made reference to using the same principles in many new ventures. That;s why I find all of these blogs so valuable, regardless of whether it will be the exact strategy I will use in the future.
Thanks for sharing Jo.
Cath

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clem schollum July 15, 2010 at 9:18 pm

wow that’s really interesting that there still seems to be regularity in the stock mkt trends in such shaky times; learning more about day trading out of curiosity, balancing risk with return is always the key i guess; it still sounds like a big gamble for returns that match! must learn more before i seriously consider it but food for thought!

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Angus Turner July 15, 2010 at 10:47 pm

Good stock market investing advice, if it is followed it helps remove some of the emotion from trading. The market is driven by emotions – Fear and Greed, when controlled it is possible to trade the market with success.

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Jayne Pleysier July 16, 2010 at 3:58 am

Some great advice here about Day Trading and setting up and sticking to a plan to ensure success and to minimie your risk and losses. For those who are Day trading, being emotionless for the trade is so important which can be practiced through Paper Trading before you are willing to risk money. Preparation and planning is the key to success!

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Jackie Stenhouse July 16, 2010 at 1:21 pm

Haven’t traded eminis as of yet. We have a program which does all the homework for us (apart from a few minor details) so don’t feel the need to analyse charts etc. We do a little day trading on the forex though which is very intense at times – especially when it goes the wrong way.

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Brenda McNutt July 19, 2010 at 12:13 am

I think Day Trading would be a very exciting market to be in and maybe I will get to try it one day.

I like your phrase “having the plan, doing the homework, and then just executing the plan” – says it all in a few words, but there would be quite some amount of work behind those few words.

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Jody Chambers July 19, 2010 at 12:25 pm

Although I do not day trade the forex market i have read quite abit about it, and like you say the proceedure seems surgical and emotionless….the latter I do not have undercontrol yet.

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Sarah Butland July 20, 2010 at 12:06 pm

I’ve never had the desire or passion to learn Day Trading but learning one blog at a time is just my speed. Sean, you can make quantum physics seem like learning the alphabet so I’m going to be hooked to your Emini Day Trading blog for life :)

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Cathy Howitt July 20, 2010 at 3:01 pm

Emini day trading rules for successful investing is a great blog, especially for a person new to this type of trading. Making the methodology and tactics clear and then listing 5 Specific day trading rules, makes this blog easy to read and understand.

The more i read, the more I am inclined to use this strategy down the track (when I get a handle on everything else that is!)

Thanks Sean and Scott
Cathy

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Rita Pepper July 20, 2010 at 7:44 pm

Hi Sean,
I want to get into trading eventually but only after i have done a course with someone I have trust in. I will keep reading your posts to learn until I do the course.

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clem schollum July 20, 2010 at 8:34 pm

Keep up the good work Sean, we’re learning lots and enjoying every minute. The more times we read this, more things sink in.
Have reviewed this blog on Alexa

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Melanie Braggs July 20, 2010 at 9:42 pm

I have a lot to learn about day trading and post by post here I will build my knowledge. I would like to try this trading sometime when I have understood it further.

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Rose Kawe July 21, 2010 at 7:44 am

Wow!!

Thanks Sean, this is awesome. Emini Day Trading Rules for successful investing is a great post!
I’ve just learnt about Day Trading now!

Cheers
Rose

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Elly July 21, 2010 at 10:34 am

Hi Sean

By day trading surely you mean daytime in the USA? E minis happen in this house beginning at 11.30 pm every night with the first session ending at around 2.30 am then the next session is about 3am through to 6am. That is the time in NSW and daylight saving of course is even later.

I don’t trade them this year because my son has HSC and I need to help him in the evenings but my partner is still trading and looking at going to Eminis auto trading.

Just thought I would clarify that in case people reading this didn’t know.

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Bullhunter July 21, 2010 at 6:58 pm

This form of trading is known as day trading regardless of where you are in the world ;-). The site is also a worldwide publication so I don’t usually single out any particular location when writing. In any event, I’m sure the Aussie readers will benefit from your info, thanks Elly :)

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Peter Damien Ryan July 21, 2010 at 10:59 am

Discipline, methodology, following the rules and no thinking. emotional trading plans and accurate homework – these elements are not for those who approach the stock market like a day at the races or who are highly risk aversive and think or worry too much. Well, that might describe me – because I don’t know enough about the stock market and share trading…. yet!

This article is worth bookmarking because it pulls no punches and makes it clear that success only comes with a good researched education.

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Albert Parker July 24, 2010 at 4:32 am

so many good terms are here which are used in stock trading….i was not aware of it and think people will get so much information from this…thanx buddy….

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Jazz Salinger July 28, 2010 at 8:16 pm

Hi Bullhunter and Scott,

Wow! Okay, I know nothing about the stock market but I think I’m about to learn. Thanks for giving me Emini day trading rules. I find it amazing that you can analyse the market and have a pretty good idea what it’s going to do.

No emotion, just do your homework and follow the rules and you’ll be okay. I’m looking forward to learning how to buy and sell my own shares instead of just having an account at the bank.

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Matt Dye March 6, 2011 at 4:13 pm

Hi, nice article. Rules are definitely important for day trading the eminis. I day trade the es emini everyday and can say from experience that they are very fun and addicting. I do, however, disagree with your sentence that trading should be emotionless. Emotions can cloud judgement and create more mess if you are on tilt, losing and mind becomes irrational – it is a poker term, but we are humans and emotions are necessary for us to be able to make decisions.

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Kerrie Setiawan July 29, 2011 at 7:02 pm

Get a good stock market education and trade mechanically. The market shows no mercy if you are unprepared or emotional.

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