Index Fund Trading Using Technical Futures Stock Market Analysis - What Every Trader Should Know

By Rocky Tapscott

Index Fund trading using technical futures stock market analysis can be one of the most profitable…or most costly exercises you will ever undertake.

While trading a basket of futures stocks has it’s advantages, such as removing the risk of any single company you own going bust and taking all of your money with it, futures stock indexes (on which index funds are based) can tend to be highly volatile, especially the smaller ones.

The S&P 500 is probably one of the worlds best know futures stock indexes, and it has a long history of strong trends that have made and lost traders fortunes over the years.

By trading a managed fund that tracks the index, options over the index, futures stock contracts over the index or Contracts For Difference (CFD’s), we can participate in the movements of the market.

The easiest way to do this (and the system that many mom and dad investors use) is to simply buy a managed fund like the Vanguard 500 Index Fund. This works fine when the trend is up, but what about when the trend is heading in the other direction?

There are several mutual funds that trade inversely to their respective index. One of these can be used to trade the downside when prices are falling, as they do from time to time, sometimes quite spectacularly.

The problem with most of these funds is you have no leverage. This is why many traders move on to index fund trading through derivatives such as futures stock contracts as an alternative to simply buying and holding mutual funds.

While the margin for the full S&P 500 futures stock contract is too high for the average trader, a smaller contract is available called the S&P Emini, which mirrors the larger contract, but is only 1/10th the size.

This allows anyone with an adequate account to safely trade this liquid, often strongly trending market.

The S&P Emini futures stock contract gives you tremendous leverage to movements in the underlying market. Of course, if you have no idea how to trade, this leverage is a double edged sword (and you’ll most likely get cut).

Index Fund trading means you MUST have a good understanding of technical analysis and have clearly defined trading rules to make it work. It can be very profitable, but you have to learn how to do it right.

This is why learning how to trade profitably is far more important than the vehicle you use. You must possess the skills of profitable trading before the Emini futures stock market or any other financial product is going to help you create wealth. This is especially true when the concept of leverage is introduced, as it is with futures stock contracts.

The solution? Make it your goal to find a mentor with a successful track record as a trader who can teach you what he (or she) knows, and you will be in a position to trade profitably.

You need to know the difference between trends and counter trends - and then only trade trends. Once you have this training you will know, with a high degree of certainty, what the trend is and how to trade it. The lessons apply equally to both stocks and indexes, and will give you a good grounding in how to trade trending markets

By understanding trends (and understanding technical analysis will teach you this), you will be in a position to enter and exit trades with a high probability of success in any futures stock market or stock index you choose to trade.

Some of the common mistakes and attitudes that uneducated traders and investors make are:

* Not knowing where to start in trading or investing

* Holding losing trades, hoping they will go back up so they can get out without a loss

* Buying on rumor, tips or gut feel - always a great way to the poor house

* Continually trying to land a ‘home run’ to make back previous loses

* Closing out positions early as soon as they start to become profitable

* A feeling that the market is against you. The market has no memory; it doesn’t know or care about you

* Buying expensive software analysis programs that don’t work

All too often, people jump into index futures stock trading head first without a thorough understanding of exactly how they are going to approach the market. The result is usually nothing short of disastrous.

A successful trader treats trading as a business. The first step in the process of becoming a profitable trader is to construct a business plan, much like one that you would use for a conventional business.

A business plan to a trader is known as a trading system, and like a business plan it is used to define the exact strategy of actions that are used to create a profit.

The key to successful trading is a properly implemented strategy, not subjective decisions based on your opinion of the market or the news of the day. The three key ingredients to becoming a successful share trader are:

1. A proven trading system; look for RESULTS not hype when choosing a coach or mentor to teach you how to trade. Personal one-on-one coaching is best, so search out a coach who will be there for you

2. The tools to implement the system; don’t reinvent the wheel. Use the proven tools your mentor shares with you and get started the right way

3. The ability to implement the system. Profitably trading, especially trading the Emini futures stock contract, requires a mindset that only a good teacher can install. Without this mindset, you will most likely fail to make it as a trader in this fast paced market.

Learn these three things and you have a wonderful opportunity to build a profitable Emini trading business. Without them, no matter whether you are trading index funds, options or futures stock, you’ll always struggle to make it as a trader.

Rocky Tapscott is a trader who works with Professional Emini Trading Coach Sam Goldberg. Sam has written a Free 5 day Mini Course called ‘The Futures Stock Trading Mastery Course’ that shows you step by step how to become a professional trader and shares the 5 critical distinctions that separate successful traders from those who lose in the market..

Fill out the information on the top of the page for a free 5-day Futures Stock Trading Course delivered right to your email! No Risk. No Money. No Bull.

The 3 Biggest Road Blocks to Futures Stock Trading Success

By Rocky Tapscott

Imagine the perfect business…time freedom, you control your own destiny because you have no boss to answer to, you can work anywhere you have a laptop computer and an Internet connection, and potentially lucrative earnings…Emini futures stock trading has all this and more.

So why is it that so many people who trade the Emini market, probably at least 80% of those who try, fail to become consistent, profitable traders? There are many reasons, but here are three major road blocks that stand out among the traders I know that tend to limit a traders’ career to weeks or months instead of years…

Put your information at the top of FuturesStock.net (this site) to get a complete Futures online trading course delivered to your email!

Road Block 1 - Not taking responsibility for your own actions.

Taking responsibility for ones own actions brings up a huge divide between good traders and those who fail to make it long-term. Any time you hear a trader blaming his Broker, the Fed, the TV journalist, other traders running stops or anyone else, you just know they probably aren’t going to make it as a professional trader.

Professional traders never blame anyone or anything else. They make the decisions based on their analysis and live with the consequences. These outcomes can range anywhere from profits and losses, but the good trader knows that if he sticks with his winning system he will make money over the long term.

You cannot blame other people’s actions for your results. Stick to focusing on the things you can control, take responsibility for your actions, even when they result in a loss, and your trading results will improve over time.

Road Block 2 - Become risk averse instead of going for the big profits on every trade

If you take big risks in the Emini market you’ll most likely have a very short trading career. The huge leverage futures trading gives you means that your gains and losses are magnified, so overtrading, or taking a position that is too large for your account can create catastrophic losses and force you out of the game.

Profitable traders tend to be risk averse, taking many smaller profits (and fewer, even smaller losses) over a long period of time. They build their accounts steadily rather than plunging a large chunk of their capital on one position and hoping for the best.

No matter how good your system and analysis, you will have losses trading the Emini. By keeping them under control you can gradually build your wealth, grow your account and stay in the business long term.

But one catastrophic loss can shake your confidence (not to mention your account balance) to the point where you will eventually give it away and stop trading. Professional traders always consider the risk return ration of any trade and use prudent position sizing to minimize risk while maximizing their potential profits.

Road Block 3 - A lack of trading knowledge and experience

Many traders read a couple of technical analysis books, glance through a book on Candlestick charting, and set off with high hopes of becoming a professional Futures Stock trader. Unfortunately there’s a bit more involved in trading success than that.

The problem with reading books and most training courses about trading is that they usually only give you part (and often a very small part) of the big picture. All professional athletes, business owners and entrepreneurs have coaches, advisors, mentors or boards of experienced directors to guide them as they build their businesses.

To become a professional trader, you too need a coach or guide to show you the ropes, test and challenge you, and help you to succeed at the very highest level. The best coaches are people who have been there, done it, and have the experience to show you the short-cuts to success.

Find somebody who can share this knowledge with you and you will increase your chances of becoming a successful Emini trader immensely. Try to do it on your own and you’ll waste years of valuable time and money trying to work out the best system for yourself.

Rocky Tapscott is a trader who works with Professional Emini Trading Coach Sam Goldberg. Sam has written a Free 5 day Mini Course called ‘The Futures Trading Mastery Course’ that shows you step by step how to become a professional trader and shares the 5 critical distinctions that separate successful traders from those who lose in the market..

Enter your information at the top of this website for a Free copy of the course and to book yourself in for a Free 30 Minute Trading consultation where Sam will help you get your Emini trading back on track.

3 Simple Steps To Becoming A Successful Futures Stock Trader

By Rocky Tapscott

Trading the Emini futures stock market can be the ultimate lifestyle business. No employees, no boss, time freedom, you can run your business from anywhere, and enjoy potentially very good earnings.

If only it wasn’t so difficult to make it all work…

You know what I mean. You do your analysis, see a trade, and hit the order button. And then you start to worry. What if I’m wrong. What if that reporter on the finance show was right about the jobs number coming in higher than expected. And the Fed could raise rates this afternoon.

Your mind starts racing with all sorts of ‘What would happen if?’ thoughts, so you decide you’ll wait until tomorrow, just in case these demons combine to knock you out of your trade with a loss.

You hit the shops, or the beach, or the woods…anything to take your mind off trading for today. Tomorrow will be better you assure yourself, and you bask in the feeling of relief that your precious capital is no longer at risk today.

But tomorrow is the same. There’s a different set of risk factors for sure, but they are still there, haunting you and your trading. You become paralyzed and can’t function. And your confidence and your account balance start to suffer. If this sounds familiar, here is a simple three-step solution to your Emini trading problems.

Step 1 - Decide that trading is a business just like any other. Traders who are successful over a long period of time treat their trading as a business, not a hobby.

Traders who stick around for a while, blow their accounts and give up are usually trading for the excitement the action gives them or for the rush of being in the market.

If that sounds like your current trading style, beware. You are due for a lot of emotional and financial pain before your trading days are over (which could be sooner than you think). Treat trading as a business, learn and test different approaches, and you’ll massively increase your chances of long-term success.

Step 2 - Don’t try to forecast where the market is going - trade reality.

I spent years studying WD Gann’s work and all it did was blind me to the facts - if you think you can forecast where the market is heading consistently, you are deluding yourself. The bottom line to whether you can forecast will be your account balance, and for most people who try, it’s not a pleasant experience.

Sure you’ll get it right sometimes, and that’s the most dangerous thing about forecasting. By tossing a coin you’ll be right half the time, so you tend to get random rewards when you trade. You win some, and think your forecasting ability is great. Then you lose some after doing the exact same analysis, and you start to question yourself and your abilities.

Eventually this lack of consistency forces you to either change your strategy or give trading away to protect your sanity…

Step 3 - Learn how to trade from somebody who is prepared to coach, guide and mentor you until you are proficient and making money on your own.

To succeed long-term at trading you must think and act like a competent business person in any other market. You will need to study and learn your craft by taking courses, you will need to develop a business plan, and you certainly need sufficient capital to ride out your learning curve and become a successful trader.

You will need a certain amount of on-the-job training, but learning this way from scratch can be terribly expensive compared to finding somebody who will coach you until you are ready.

You’ll learn how to trade the Emini much more quickly if you have somebody who’s done it professionally watch over your shoulder and guide you as you trade. You simply can’t learn this stuff from books and courses. You need to be shown how to do it…

If you were mining for gold, what would you prefer; somebody to sell you a map, a shovel and a compass and tell you where to go, or somebody to actually take you down deep into the mine, physically show you to where to dig for the gold, and then help you carry it up to the surface?

The answer is obvious isn’t it?

Bottom line: Find somebody who is prepared to coach and mentor you and your chances of becoming a wildly successful Emini trader will become a whole lot better.

Rocky Tapscott is a trader who works with Professional Emini Trading Coach Sam Goldberg. Sam has written a Free 5 day Mini Course called ‘The Futures Trading Mastery Course’ that shows you step by step how to become a professional trader and shares the 5 critical distinctions that separate successful traders from those who lose in the market..

Enter your information at the top of this website for a Free copy of the Futures Stock Trading Course and to book yourself in for a Free 30 Minute Trading consultation where Sam will help you get your Emini trading back on track.