Day Trading Futures

When day trading futures, you enter and exit all positions in the same day – never holding a position overnight. Because overnight market movements are difficult to predict, many traders avoid risk in day trading. Ironically, the public believes that day trading is the most dangerous way to trade.

This is a myth!

Some traders do day futures trading, making 1 to 3 trades a day, trying to catch major intraday moves. Others trade in and out frequently, trying to make a small profit on each trade. (My style uses a unique combination of these two strategies.)

For day-trading futures, equity stock index futures have become the most popular day-trading vehicle due to their liquidity, leverage, and ease of online trading. You can go short or long with equal ease – unlike stocks where it’s easier to go short than long due to the “up tick” principle.

It is important to understand the temporal relationship of Eminence (and “big contracts”) to cash indices. Let’s begin…

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