David S Adams

 

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.

 

Learn to trade the E mini Contracts from a real trader, not a salesman. Learn everything you need to know to trade the e-mini contracts with confidence. I invite you to receive our free, no obligation video series every night, delivered directly to your e-mail box. These videos contain valuable tips on the trading the e-mini and advanced techniques for profiting in your trading effort. All at no cost. Receive you valuable videos series by clicking here.

 

Day Trading - High Probability Versus Low Probability Trading by David S Adams

Strict reliance upon oscillators and indicators can lead many novice traders into unproductive trading situations. Learn to read price action, along with support and resistance will greatly improve your trading results, especially when trading with the trend... READ MORE

Day Trading - Can You Trade the Heiken Ashi? by David S Adams
The Heiken Ashi candlestick trading is just starting to gain acceptance, with good reason. Check out how this unique candlestick charting system may improve your trading... READ MORE

Learning to Make Adjustments and Your Intraday Day Trading by David S Adams
It would be very convenient to have a day trading system that worked under all conceivable conditions without fail. Whether the market was consolidating, trending upward, or trending downward the ideal system would churn out profits regardless of prevailing market conditions. Unfortunately, no system adequately deals with varying market conditions that can arise throughout the course of their daily trading session... READ MORE

A Common Mistake Traders Make When Day Trading by David S Adams
It is not uncommon for traders to have the financial news on as they trade. I have found that listening to the news leads me to some biased thinking and results in a few faulty trades. So I turn the television off... READ MORE

Why You Should Make Use of the Best Day Trading Tools by David S Adams
Price action on a trading chart is often overlooked in favor of oscillators and indicators. Pure oscillator traders are missing out on a wealth of information in price action and price patterns... READ MORE

Three Reasons Not to Rush Into E-Mini Day Trading by David S Adams
Many traders rush to learn a system and start trading before they are ready to trade. There is no reason to rush you entrance into trading. Here are some of the potential problems that may arise... READ MORE

Fibonacci Retracements and Technical Trading by David S Adams
Among the many tools that technical traders utilize, none is more prized than Fibonacci retracements and extensions. By now, I'm sure that most traders are at least vaguely familiar with the origin of the Fibonacci sequence. If not, here is the quick version; mathematician Leonardo Fibonacci identified the sequence in the 13th century... READ MORE

 

Three Methods to Trade (or Not Trade) Consolidating E-Mini Contract Patterns by David S Adams
It goes without saying that every e-mini day trader prefers to trade a trending market, they are the easiest to trade and have the highest probability trades for success. Unfortunately, markets tend to trend only about 30% of the time. The remainder of the trading session consists of normal backing and filling operations, sometimes referred to as "market noise."... READ MORE

 

Why Do E-Mini Trading Courses Cost So Much? by David S Adams
A casual perusal of the e-mini day trading courses available will leave a potential new trader with sticker shock. It is not unusual to see courses that are priced at $5000 or more. By any measure, this is a high-end purchase for most individuals. Of course, the question is a simple one, why are day trading courses so expensive?.. READ MORE

Day Trading and Mechanical Automation by David S Adams
The notion of developing automated futures day trading robots is an idea whose time I hope never comes. The markets, even with some of their faults, remain one of the bastions of capitalism. If we were able to pick every trade perfectly, there would, in effect, be no need for markets as every trade requires a winner and a loser... READ MORE

Day Trading - Sometimes You Take Good Setups and They Fail by David S Adams
There are days when even quality trade set ups do not come to fruition. How you handle these losing trades will have a direct bearing over the long run on your trading success. It is imperative to maintain your technique in the face of a few losing trades... READ MORE

Day Trading - Price Volatility and Your Trading by David S Adams
Price volatility is the magic in intraday trading. Intraday traders need a certain level of volatility to be efficient, yet too much volatility can spell disaster and too little volatility can dampen the traders prospects for profit... READ MORE

Day Trading - Defining the Term - Trend by David S Adams
There is no shortage of discussion about market trends. On the other hand, the term trend is often defined in terms of the traders trading style. For some, a trend may be 10 years, for others, like day traders, the trend may be as short as two hours... READ MORE

Day Trading - Ever Thought of Giving Up? by David S Adams
Failure is an integral part of the day trading learning process. Traders can learn to increase their chances in trading by preparing properly. I give my take on what it takes for a novice trader to succeed... READ MORE

Three Core Attributes of a Quality Day Trading System by David S Adams
There are many day trading systems available on the market and some are very mainstream in nature while others border on the bizarre. I outline three attribute that I think are essential for any good trading system and highlight the importance of each attribute... READ MORE

Beginning Traders Can Learn to Day Trade Effectively by David S Adams
There is a general feeling among experienced day traders that novice traders take several years of seasoning before they can become effective and profitable. My experience has taught me otherwise... READ MORE

Day Trading - Can You Trade Part-Time? by David S Adams
Is day trading a full time occupation or can you develop the skill set to learn to trade on a part-time basis? This is a question I am often asked and I give my view on this dilemma... READ MORE

How to Use the Put-Call Ratio by David S Adams
There are several indicators that I use that are truly unique and helpful. The put/call ratio is one of those indicators that, on certain days, can give you a wealth of information and some insight into the market. Though I seldom use the put/call ratio as a primary indicator, I often use it to give me an overall view of what the traders are buying and selling... READ MORE

E-Mini Day Trading - It's a Mindset by David S Adams
There is a long standing belief that trading can lead to fast money a untold riches. Traders who are able to make a living in the business know that nothing could be farther from the truth: they have a completely different mindset... READ MORE

Do You Want to Trade Or Have Someone Tell You When to Trade? by David S Adams
Would you prefer to learn how to trade or take your trading cues from a trading room leader. As trading rooms increase in popularity I take a look at this emerging question... READ MORE

Day Trading - Learning to Manage Risk by David S Adams
One of the hallmarks of an experienced trader is his or her constant aversion to risk. There are many steps you can take to minimize risk in your trading and I have enumerated a few that a simple and easy to implement... READ MORE

Day Trading - A Comparison to Floor Trading by David S Adams
There has been numerous training educators who claim that real trader, like "floor traders" don't use oscillators and many of the tools of the home based day trader. As a trader who has performed both as a floor trader and home trader, I point out the differences in these professions... READ MORE

How Come Trading Programs Cost So Much? by David S Adams
Trading courses seem to be rising in price as time goes by. I question the value of these higher prices in relation to the actual information they convey. Further, I suggest a far more important variable in trading success than trading courses... READ MORE

Day Trading - How to Choose a Good Trading System by David S Adams
Choosing a system for trade is a difficult decision as it will effect you trading productivity and most system are very pricey. I think it is important to take your time and look at a few variable in the system: don't be fooled by exorbitant claims or flashing marketing. Pick a system you are comfortable with using for the long haul... READ MORE

Day Trading - Go it Alone Or Pay For a Trading System by David S Adams
The toughest step in the process of becoming a day trader is to pick out a system that works and you have confidence in trading. With the high price tags of some systems, picking out a trading system to begin your career with is an important decision... READ MORE

Why Trade in the Scalping Style? by David S Adams
There are many variations of day trading, and scalping is one of the most popular. I give my take on my favorite style of trading... READ MORE

Day Trading - Should You Trade the YM Or the ES Contract? by David S Adams
It is not unusual for traders to prefer one contract over another. There has been a long-standing belief that the YM contract is easier to trade than the ES contract... READ MORE

Day Trading - When to Fold by David S Adams
Imagine this situation: you are having a great day trading the ES, and it's only 11 AM. You have been hitting every trade on the money and garnered more points than any day in the past six months... READ MORE

Learn to Lose Money the Right Way by David S Adams
Day trades can have two possible outcomes; winning and losing. It's important to let winning trades run. It's also important to know how to properly exit a losing trade without emotional attachment... READ MORE

Day Trading - Living on the Edge by David S Adams
There is a general perception that day trading futures contracts is a highly risky business and not for the faint of heart. Day trading can be a very risky business, especially when traders use poor money management techniques, faulty trading technique, and improper risk assessment for trades... READ MORE

Trending and Non-Trending Markets by David S Adams
Traders start each day in anticipation of making quality trades. It's up to the market to provide the opportunities for a trader to participate; and it doesn't always reciprocate with quality opportunities for a trader to pick out high probability trades. Trending markets, or markets that are moving in one distinct direction are what every trader likes to see on his or her chart... READ MORE

Are Trading Rooms a Good Idea? by David S Adams
With the proliferation of online trading rooms, traders have a great chance to watch other traders execute trades and demonstrate trading rooms. Whether I agree with the trading room moderator or trading technique, I always seem to learn something from attending a trading room that I can use in the future... READ MORE

Can I Get Rich Fast by Day Trading? by David S Adams
There is a perception that day trading is a get rich business. This perception has drawn thousands into the day trading business, only to have these new traders hopes let down. Day trading is not a get rich quick business because there are a number of skills to master before you are competent... READ MORE

Five Characteristics of a Good Trading Platform by David S Adams
Trading on a quality trading platform is an absolute necessity for a full time futures trader. Glitches and poor software design are an indication it is time to move on to a better quality trading platform. Your trading platform is your life blood in trading and it must be dependable... READ MORE

Do You Understand How Derivatives Work? by David S Adams
Derivatives are one of the least understood financial instruments on the market. Some are very common and well traded, while others are controversial and have dire consequences for trading firms and the economy as a whole... READ MORE

How to Use the Directional Movement Index by David S Adams
The Directional Movement is one of Welles Wilder's lesser known indicators and not used nearly as much as many of the more popular Wilder indicators like the ADX, RSI, Parabolic SAR and several others. But there is a time and place for the Directional Movement Index and I explain how I use the Directional Movement Index... READ MORE

Learn to Trade With the Trend by David S Adams
Trading with the trend would seem to be an obvious practice for successful futures traders. Yet, it is probably the most violated maxim in all of trading. I try to share some of my insight into why traders seem to repeatedly break this simple rule... READ MORE

What Keeps People From Beginning a Career in Trading? by David S Adams
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... READ MORE

Do You Trade With One Oscillator, One Indicator? by David S Adams
All to often I see traders rely upon a single indicator or oscillator to make trading decisions. This practice gives the trader a one dimensional view of the market and may result in a myopic view of what is actually occurring during the trading suggest. I suggest adding a few different views of the market to get a better handle on what the market is actually doing... READ MORE

Why Don't We Just Trade Anymore? by David S Adams
The recent popularity of computerized trading programs, especially the automated variety, begs the question, "what ever happened to good old trading?" To be sure, rates of return on investments have gone up appreciably, so what's all the hoopla about?.. READ MORE

Do You Trade Every Enticing Setup? by David S Adams
Some set ups look to good to be true, but often times these set ups occur at a time when the market is not conducive to a profitable trade. It take self-discipline to lay off these trades... READ MORE

Why Do We Trade Against the Trend? by David S Adams
Trading with the trend is one of the most effective ways to day trade. Yet, it is not talked about much these days as different methodologies have become more popular. Still, trading with the trend remains one of the most effective ways of earning money while day trading... READ MORE

Penny Stock Earnings Claims - Too Good to Be True? by David S Adams
Penny stock brokerages are notorious for claimed extraordinary returns on their investments. These claims are designed to lured unsophisticated investors to invest in penny stocks, which are a risky class of investment. Be wary of any investment in penny stocks... READ MORE

Can a Novice Really Learn to Trade? by David S Adams
Learning to trade e-mini futures contracts profitably can be a tall order without proper training and experience. This fact is borne out by the especially high failure rates published in leading trading journals. It is estimated that more than 50% of first-time traders fail in their initial attempt at trading e-mini futures contracts... READ MORE

Should You Trade Futures Contracts, Stocks, Or Forex? by David S Adams
I have little doubt that the contents of this article will agitate a few people, and infuriate even more. But I have sound reasons for writing on this topic and will try to make a case for the various choices I expound upon... READ MORE

The Simple Moving Average by David S Adams
The simple moving average is a venerable indicator and very basic in it's calculation and interpretation. Yet, some valuable information can be gleaned from the proper implementation of this indicator. Due to it's simplicity, it is often overlooked, especially in recent years... READ MORE

An Introduction to Oscillator Types and Functions by David S Adams
There are a wide variety of oscillators available for the day trader to use, but choosing the correct oscillator to augment the traders methodology takes so time and experimentation. I give a brief overview of the basic functions of oscillators and some information on their implementation... READ MORE

Can You Succeed As an E Mini Day Trader? by David S Adams
There is a general perception that great traders emerge from the womb and make great trades through extraordinary intuition. While there may be someone with this ability, I have never met him or her. Great trading is the result of hard work and consistent effort... READ MORE

E-Mini Day Trading - Convergence and Divergence by David S Adams
All traders search for the hidden chart pattern or new oscillator that will revolutionize their trading and put stacks of money in their pocket. Of course, we know that there is no undiscovered trading system out there that assures a day trader 100% accuracy. Yet many traders search for the Holy Grail of day trading that will ease the burden of making decisions as to which trade is appropriate and which trade is the loser or winner... READ MORE

Should You Day Trade Stocks Or Futures Contracts? by David S Adams
Day trading stocks is a popular and sometimes lucrative profession. In this article I make the case that day trading futures is a superior instrument for day trading and why you stand to make more money by day trading financial index e-mini contracts... READ MORE

Software Programs and Trading by David S Adams
Trading software is used by many traders to augment their buy/sell decisions in the trading process. Some of the programs work well, others don't perform as advertised. The question to ask yourself is whether you need a trading program... READ MORE

The Problems With Trading Penny Stocks by David S Adams
The Penny Stock market is touted as a market where the money is easy and might be a way to hit it big. Nothing could be farther from the truth. The Penny Stock market is fraught with unsavory characters and questionable practices and finding a reputable broker is very difficult... READ MORE

3 Unbreakable Money Management Rules by David S Adams
Proper money management is imperative for success in futures trading, and there are several very common trading mistakes that will guarantee failure should you decide to implement them. It's not uncommon to see people engage in these account busting practices. To be sure, most unsuccessful traders engage in these practices on our regular basis... READ MORE

Money Management and Futures Trading by David S Adams
Learning to implement proper money management is an important skill to master to stay in the futures trading business. All too often, trader trade to many contracts for the size of their futures account balance. I give my take on sizing your future trading contract and what trading limits you should follow... READ MORE

ES E-Mini Trading - Skilled Profession Or Just Gambling? by David S Adams
Sometimes the public perceives trading as a form of gambling. While there are risks involved in day trading, it is anything but gambling. Day traders use a finite set of criteria to evaluate trades, while gamblers ( with some exceptions) rely upon luck and chance... READ MORE

How to Trade the Parabolic SAR by David S Adams
The Parabolic SAR is one of many indicators developed by Welles Wilder, and at times it can be among the most useful. I don't use it as a primary indicator, but as a scalper it has some wonderful applications. I give my take on how to use the Parabolic SAR and the scalping style of trading... READ MORE

Three Traits of a Successful Day Trader by David S Adams
While there are many characteristics that contribute to a day trader's success, I describe three characteristics which I believe are the replaceable. All the great traders seem to possess these characteristics. I give you my take on what it takes to be a great trader... READ MORE

What is the Starting Point in Learning to Day Trade? by David S Adams
So you have decided you would like to give day trading a try? How do you dance through the minefield of low quality courses versus high quality courses? Should you use a mentor? I give my take on leveraging yourself and resources to come up with a learning game plan... READ MORE

Should You Trade Every Day? by David S Adams
There are days that can be highly profitable in the e-mini market, and there are days when you should find something better to do. I elaborate on the criteria I use to determine which days provide a risk profile that is favorable to profitable trading, and which days are potentially disastrous... READ MORE

Does Your Trading Style Change As the Day Goes On? by David S Adams
The little talked about secret to successful trading is maintaining control of your emotions, regardless of the profit or loss your are experienced during the trading session. I give my take on controlling your emotions and the consequences for letting your emotions ruling your e-mini trading... READ MORE

E Mini Trading Before the Session Opens by David S Adams
One of my favorite times to trade the ES e mini is in the hours before the session opens. I usually start around 6 AM CST and find more than my share of good trading opportunities. The market is generally fairly tame and that trading is usually not frenetic... READ MORE

Day Trading - Predictive Versus Reactive Style by David S Adams
Determining which direction the market may or may not go is a difficult process. There are trading style which do not try to predict market direction, but react to the direction the market is already headed. This trading style is called scalping and I share my thoughts on the advantages of scalping... READ MORE

Day Trading - What Kind of Computer is Best to Trade With? by David S Adams
Oftentimes a trader's computer system is poorly designed and doesn't meet the needs of the trader should a catastrophic event occur. I suggest using desktop computers over notebook computers and a variety of other suggestions to assure your trading doesn't suffer because of poor computer system design... READ MORE

Does Technical Analysis Work? by David S Adams
There has been a long standing debate between academics and trader about the scientific validity of technical trading. Academia has long dismissed this form of trading as spurious. I explain my views on this topic and look at various technical indicators and asses their effectiveness in my personal trading... READ MORE

Are Penny Stocks Appropriate Investments For Most Individuals? by David S Adams
Penny stocks offer the allure of unlimited profits with a very low capital outlay. While these investments may be suitable for some investors, there are a number of important factors to consider before investing any substantial money in penny stocks... READ MORE

Day Trading - Not a Get Rich Scheme by David S Adams
It is not uncommon go hear day trading referred to a way to get rich quick. Nothing could be farther from the truth. To be a profitable trader takes great training, quality mentoring, and solid experience... READ MORE

Do You Trade Your Charts Or Your Trading Account? by David S Adams
It is often difficult to differentiate between great trading and managing your trading account. The fact of the matter is that your trading account should have no effect upon your trading style. I explore some of the phenomena that occur when traders pile up losses in their account, or pile up gains. The results may be surprising... READ MORE

Day Trading - Probabilities Versus Absolutes by David S Adams
Trading is the constant assessment of risk and reward. Probability is process by which we decide how and when to trade. I contrast the world of probability with the certainties of absolutes... READ MORE

What is Your Priority? Brokers Or Commissions? by David S Adams
Many traders take great pride in obtaining the lowest possible commission rate and futures brokerage might offer. While it is important to save money when possible, there are other more important factors to consider when choosing a futures brokerage firm than rock bottom commission rates. I examine some issues I consider more important than commission rates in this article... READ MORE

Gold, Fractional Banking, and Other Insanity by David S Adams
Many investors have taken advantage of the inflation fighting benefits of gold investing. To be sure, gold has offered decent returns and should have a place in a normal investment portfolio... READ MORE

What Special Skills Does it Take to Be Successful Day Trader? by David S Adams
In recent years hundreds of new trading programs have come and gone with little fanfare. Yet, a constant level of trading success has persisted. There must be a common denominator, besides trading systems, that is important in determining traders success. I take a good look at what science and researchers are finding as important in successful trading... READ MORE

Technical Trading and Candlestick Charts by David S Adams
While candlestick charting originated in Japan in the mid-17th century, it has enjoyed a renaissance of late as traders have learned to apply the principles of this system to modern day futures trading. I give a brief description and history of candlestick charting and recommend learning the system to improve your personal futures trading system... READ MORE

ES E Mini Future Trading - Simplicity Versus Complexity by David S Adams
For the last several decades traders have attempted to refine the accuracy of futures trading. These efforts have primarily involved more complex systems aided by computer analysis, data mining and complex mathematical analysis. Yet, our success rate in trading has not improved markedly. In this article I try to make sense of this phenomena... READ MORE

Trading With the NYSE Tick by David S Adams
The NYSE tick is a useful and insightful indicator into the price action on the New York Stock Exchange. In this article, I explain some of the uses for the NYSE tick and outline a particularly effective trade I utilize... READ MORE

Two Important Points to Get Trading Right From the Start by David S Adams
The lure of fast money and a leisurely lifestyle brings large numbers of new traders into the marketplace on a daily basis. Unfortunately, many traders get a cruel lesson and a dose of reality after trading for a few days. It's not as easy as the people who sold the $50 trading course explained... READ MORE

How to Trade ES Emini Gaps by David S Adams
Gaps are a popular set up for many traders to initiate trades. They are also a great way to lose money. I explain some of the gap formations and profitable gaps to trade... READ MORE

Do You Trade the TRIN? by David S Adams
The TRIN was developed in 1967 by Richard Arms and is commonly referred to as the Arms Index. It is a widely used index among institutional traders, and used less by individual traders. This can be attributed to the difficult nature of interpreting the indicator, as it contrarian by nature. The TRIN has it's roots in the analysis of volume, or the breadth of the market... READ MORE

Why Day Trade Futures Indexes and Not Stocks? by David S Adams
There are a variety of trading instruments that lend themselves to day trading, but none compare with the emini futures contract. I have a look at the margin requirements and money management that can make you a successful day trader... READ MORE

What Makes a Successful Trader? by David S Adams
Day trading combines a variety of unorthodox tools and methodologies to achieve positive results. Unfortunately, many of the tools the day trader employs seem arcane and counter-logical to the average person. Just the same, they work and must be learned to be successful... READ MORE

Do Natural Born Traders Exist? by David S Adams
There is a misconception that some individuals are born to trade successfully. I have not met this individual yet, as most traders master their profession through hard work, diligence and dogged determination. These are the qualities of a good trader... READ MORE

Two Deadly Impediments to Successful Trading by David S Adams
One of the most difficult propositions in day trading is to check your emotions and day trading at the door. Here I outline two important maladies many traders suffer from and offer advise as to how to overcome them... READ MORE

Day Trading The Fibonacci Numbers - The Real Deal Or Just Predictive Garbage? by David S Adams
Many academics cannot find relevance in the Fibonacci sequence and give it short shrift, yet many Fibonacci traders swear by the system. I take a look at the facts of the system and try to sort through how the Fibonacci works, and why it works... READ MORE

Contract Considerations For Day Trading the ES Emini by David S Adams
The ES emini is a widely popular trading instrument on the CME Globex exchange. This contract needs to be fully understand, and I explain the monetary and trading basis for the contract. Finally we take a look at the margin requirement... READ MORE

More on Emotional Considerations in Your Day Trading by David S Adams
You have a responsibility to be prepared mentally each day you choose to day trade. Many traders shun the emotional realities of trading, and this aspect of trading is among the most important. Recent findings in scientific studies reveal, unequivocally, that a traders emotional state during a trading session may be the single most important factor in determining whether a trader has a successful day or loses money... READ MORE

 

Do You Have Firm Control on Emotional Factors Which Effect Your Trading? by David S Adams
Many day traders fail to realize they may be their own worse enemy when trading. The handling of your emotions, or trading psychology, is of paramount importance when trading. We take a look at several emotional considerations in this article... READ MORE

How to Trade Pivot Points by David S Adams
I think the most important fact, yes I said fact, regarding pivots points is they are a prediction of future support and resistance levels. The key word in the previous sentence is "prediction" and traders should keep that in mind when trading pivot point systems. I have always been conflicted as to why pivot points (PP) become important throughout the course of the day. Most traders begin their day by plotting pivot points onto their chart... READ MORE

How to Trade the NYSE Ticks by David S Adams
The NYSE Ticks are data used to illustrate the relationship between the aggregate number of rising stocks vs the number of falling stocks. This data, when filtered, can give you some of the best trading info from which to initiate buys and sells... READ MORE

Day Trading With the Stochastic Indicator by David S Adams
The venerable stochastic indicator has been around since the 1950's, but it's popularity seems to grow with each passing year. Have a look at a true momentum indicator, the stochastic indicator... READ MORE

How Does the Relative Strength Indicator Function? by David S Adams
Originally published by Welles Wilder in 1978, the RSI is a gem when used properly. Not particularly good as a primary indicator, it shine to confirm trades and exit trades... READ MORE

Introducing the Commodity Channel Index by David S Adams
The Commodity Channel Index is a versatile and nimble indicator for day trading. See how I use the CCI in my trading and adapt it to financial index trading... READ MORE

How Much Money Can You Make Day Trading the ES Emini? by David S Adams
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... READ MORE

Do You Trade ES Emini Market Noise or the Trend by David S Adams
I trade the overbought and oversold condition on the ES Emini contract, not the market noise. The market noise is the background noise and not a trend. I have found trading market noise is unprofitable and unforgiving. Trade the trend, not the noise... READ MORE

Futures Trading - You Need a Backup Plan by David S Adams
Loss of your data feed is just one of the problems futures traders face throughout the course of the day. Since your computer is such an integral part of your living and income, you must plan for unexpected problems that may occur and use best practices when trading... READ MORE

Futures Trading and Probability by David S Adams
Probability and trading are closely related and understanding the probability in trading is essential to trade correctly. Further, time frames and probability have another close relationship and I examine the meaning of that relationship as it relates to trading futures... READ MORE

Can I Really Make a Living Day Trading Online? by David S Adams
Many people make a great income day trading the E-mini contracts from their computer at home. That being said, there are some important prerequisite skills you need to develop before you make your first foray into the trading world, and the first question you need to ask yourself is "Am I committed to learning how to day trade?" If you don't have a high level of commitment to the task of learning, you should shelve your plans to day trade... READ MORE

How to Enter and Scale Out of an ES Emini Trade by David S Adams
Instead of using market orders to enter your ES Emini trades consider a different entry strategy and scaling out of your trades. You can lower your risk a bit and add money to your bottom line by avoiding market orders... READ MORE

The Keltner Channel and Bollinger Bands by David S Adams
Day traders have used channels and bands in a variety of capacities to determine the volatility and range of the market. The Bollinger Band is most popular, and today I introduce the Keltner Channel which is popular with several day traders... READ MORE

5 Tips For Fighting Day Trading Burnout by David S Adams
Full time traders often find themselves trading poorly, or entering trades outside their trading system parameters. This is often caused by trading burnout, and it should be dealt with with due haste. I offer some remedies for trading burnout, and a short discussion of the causes... READ MORE

 

How Do the Futures Markets Actually Function? by David S Adams
People often consider futures markets very complex entities, when in fact they are fairly simple in principle. I will concede the technology required to operate an exchange is very complicated but the actual trading system is standardized and easy to understand. A brief history of future exchanges might be in order, and they are far older than one might imagine... READ MORE

 

How Does a Futures Margin Account Work by David S Adams
Your margin account and the management of your margin account is one of the most important aspects of trading. I talk some about initial margin requirements and mark-to-market margin calculations.and give some info about brokers responsibility in margin use... READ MORE

 

Es Emini Day Trading - Welles Wilder's Continuing Legacy in Technical Trading by David S Adams
A summary of the profound effect Wells Wilder had upon technical analysis. Brief mention of his ground breaking technical systems like the ADX, Average True Range, RSI, and Parabolic Stop and Reverse are discussed, along with his Delta Phenomena theory... READ MORE

 

ES Emini Day Trading - The Perfect Day Job by David S Adams
Much has changed, and now day trading the ES Emini is within the reach of anyone with a computer. With some training, it is possible to earn an impressive living trading from your home... READ MORE

ES E-mini Day Trading - Simple Moving Averages by David S Adams
In my trading, I strike an 89 period moving average on every chart I trade. If the price action is significantly below the 89 period moving average, or has spent most of the day below the average, I simply eliminate any long trade from my thinking... READ MORE

ES Emini Day Trading - Sure Fire Methods to Fail by David S Adams
I mentioned in a previous article that I have had the opportunity to sit in on more than my share of trading rooms. Some were very good, some were...ah...erm...not so good. I am a strong believer in solid trading education, flawless execution of the technique you learned, and trying to keep your emotions from affecting your ability to read the chart you are trading. I have come up with a list of things that I feel are essential for the average trader to fail... READ MORE

ES Emini Day Trading - Are You Serious About Trading Or Just Going Through the Motions? by David S Adams
ES Emini Day Trading: Are You Serious About Trading or Just Going Through the Motions The the ES Emini Contract requires a high level of concentration and training to trade with the kind of success to assure a predictable, full-time income, and with failure rate for novice traders in the high 70% range, I have to assume that something is terribly wrong with the method we, as traders, are educating new traders to participate in market. This statistic has been bothering me for quite a while, and it does not speak well for the trading education community... READ MORE

ES Emini Day Trading - Are You Confident in Your Trading Or Do You Trade and Hope For the Best? by David S Adams
There was a time in my life when I would spot a so-so set-up, take it, and hope for a profitable outcome. I was young, just learning to trade on Wall Street, and incompetent. If you are like most people you know the feeling of being unsure as to the direction of the trade you have chosen. More importantly, you hope that you have chosen the right direction in your trade and desperately fear that computer tone that indicates you have been stopped out, in the wrong direction... READ MORE

ES Emini - Make a Fortune on Single Set-Ups by David S Adams
It seems every trader I talk to has a favorite trade set-up that he/she claims has never lost money. Common sense dictates that such a statement is pure nonsense. I always think to myself "surely the trade has lost money at least once.".. READ MORE

ES Emini - Often Misused, the MACD Can Put Money in Your Pocket by David S Adams
I am interested in the this rate of change indicator to give me some insight into the strength of the current short trend. I cautioned early in the article not to use the MACD as a primary indicator, and I think this is good advice. In short term trading you will find yourself whipshawed in and out of trades and pile up small losses... READ MORE

ES Emini - More on the Scalping Style of Trading by David S Adams
My views on the way the market functions precludes me from making long term commitments to a given market direction. Market prognostication is an inexact science, at best, and most economists and traders have a miserable track record of predicting the future direction of market movement. So, I don't even try... READ MORE

Why Day Trade Futures Instead of Stocks Or Options by David S Adams
I don't doubt the legion of day traders who claim great success with options and stocks. But neither of these investments meets the criteria for a great day trading instrument for me... READ MORE

The Problem is Simple - No One Taught Us How to Make Money by David S Adams
As the country struggles during the current recession, there are countless ways to make money without huge start up costs. Of course, people need to mindful to steer clear of scammers and opportunists, but trading is one of the simplest way to begin your "Plan B" income strategy... READ MORE

Should You Invest in an Emini Trading Course? by David S Adams
A casual search of Google will turn up a plethora of emini trading courses which promise to revolutionize your trading and turn you into a literal trading machine. Without naming specific course, some of the claims are so outlandish as to be comical...and that is unfortunate... READ MORE

ES, NQ, YM - Which Emini Contract Should You Trade? by David S Adams
There are a multitude of futures contracts available to trade, and choosing the proper contract is a matter of great importance. Each contract has a distinct personality and pattern of price action. It is little wonder that novice trader bounce from futures contract to futures contract trying to find a profitable formula to trade... READ MORE

ES Emini - The Market is Right, You Are Wrong by David S Adams
If there were ever a tougher concept to assimilate than this little tidbit, I'd like to know what it would be. Common sense is a fine thing to possess, but it is of very little use when learning to trade ES Emini futures contracts. And here is the rub, the market does not always move in a logical manner... READ MORE

ES Emini Trading - The Scalping Style by David S Adams
Scalp trading is about making many small gains throughout the day and never about trying to hit a "home run" on a trade. Scalpers also rely heavily upon technical indicators and thus, most scalpers are experienced traders. Scalp traders risks are minimal and are an effective use of trading capital since this method of trading usually generates more winning trades than traditional day trading... READ MORE

ES Emini Trading - Is Your Trade Logical? by David S Adams
Trading is like math, or like using a calculator. If you don't include all of the variables in your trading equation, you are very likely to come up with an answer that just doesn't make sense... READ MORE

Why Execute Trades on the Close of the Bar? by David S Adams
I am often invited to sit in on trading groups and observe what and how they trade. I generally don't jump in and start spouting advice or "you ought to do this", or, "you ought to do that." I am much more content to watch and learn, and answer any questions, to the best of my ability, anyone might have. To be honest, I often have a heck of a time figuring out how many of the groups trade, that is, what criteria are they using to time their entries and exits... READ MORE

ES Emini - Long and Short Positions by David S Adams
Understand Long and Short trading styles is an important skill in futures trading. As these concepts are among the most basic, and fundamental strategies employed by traders I thought it might be wise to take a moment and explore the meaning of long and short trades and the implications of each trade... READ MORE

Slippage - ES Emini Trading by David S Adams
Slippage occurs when you sell or buy at a specified price and your actual execution price is higher or lower than your specified price. Even more likely, slippage can occur when you have a stop price specified and the executed stock price is higher or lower than you intended stop... READ MORE

Commodity Channel Indicator - Oscillator Or Trend Indicator by David S Adams
I thought I might begin a series of articles on some of the indicators I find helpful in my trading, so the Commodity Channel Index (CCI) seemed a logical place to start. The CCI can be a little tricky to use, but there are countless systems in which the CCI is an integral component. A simple search on Google will turn up a plethora of CCI related trading systems... READ MORE

Should You Use Bollinger Bands? by David S Adams
I advise everyone to pop a Bollinger Band channel on your chart from time to time and get a feel for this useful indicator. On days when I am having a difficult time getting a feel for the market, I often add this indicator to gain greater insight into the days price action... READ MORE

How Many ES Or YM Emini Contracts Should I Trade? by David S Adams
Many unsuccessful traders tend to overtrade and trade too many contracts, which is a recipe for disaster. Be conservative in your trading... you don't have to conquer the world in one trade... READ MORE

Efficient Market Theory's Demise - Where Do We Go From Here? by David S Adams
Efficient market theory has long been the theory "de jour" at the academic level, but has found real scrutiny at the implementation level. Has Efficient Market Theory caused the bubbles and economic chaos in recent years?.. READ MORE

Emini Trading - Do You Have Investing Style? by David S Adams
I think before anyone embarks upon serious study of trading, or trying to make a living at trading, he/she ought to consider the style of trading that best fits their personality. Unfortunately, the term "trader" means a lot of things and encompasses a wide range of trading styles and methodologies... READ MORE

Do You Over-Trade Your Emini Account by David S Adams
Over trading your account has it's roots in emotion and lack of discipline. Scrutinize your Emini trades carefully and take trade setups with a high degree of safety... READ MORE

Careful Use of Leverage in Trading Emini Contracts - A Must by David S Adams
Leverage can either maximize your return, or maximize your lose when trading the emini contracts. Your ability to manage this variable will have a great deal to do with your success in emini trading... READ MORE

Emini Trading - What Does the Current Oil Glut Mean? by David S Adams
While the long term price of oil may, in fact, be headed upward, in the short term we are faced with an oil glut of unprecedented proportions. This phenomena is the result of lessened demand for oil at a time when the country already had unusually high stockpiled a surplus of oil... READ MORE

Trading the Emini Vs Trading Penny Stocks by David S Adams
As a 25 year veteran of trading on both Wall Street and the CME there are very few areas of investing that are infested with more vice, scammers and downright cheating than the penny stock market. My opinion is to steer clear of the Penny Stock Market... READ MORE

Trading Emini Contracts - A Primer on Emotional Considerations by David S Adams
Its not uncommon, in fact it's very common, for traders to read several articles, possibly a book or two and decide that they are ready to tackle the trading the emini markets. After all, they have armed themselves with some basic information and possibly a technique that should allow them to succeed. At this point, untold millions of dollars hypothetically flow into their minds and untold riches are sure to be theirs... READ MORE

Trading Emini Contracts - Is There a Fool-Proof System? by David S Adams
I get asked often about how to trade the mini futures contracts. It seems that people, usually individuals new to trading, are looking for a "Holy Grail" when trading emini contracts... READ MORE

Do You Trade the Emini Using Stops? by David S Adams
An emotional attachment for a losing emini trade is often the recipe for disaster. Set your stops and accept a bad trade as a learning experience and part of the trading experience... READ MORE

Does Everyone Lose Money Day Trading? by David S Adams
Most new traders spend thousands of dollars to learn a system or trading and spend little or no time learning the psychology of trading. It is important to note that, to a greater or lesser degree, that trading psychology is probably the crucial aspect of your trading that will determine your success. Beware: Your emotions are your enemy in trading... READ MORE

Is Efficient Market Theory Dead? by David S Adams
Of course, my view is far from the norm in academia. Far from it, to be sure. No, this clunker of economic thought has been taught for nearly 25 years as a sort of financial religion to legions of up and coming economists and MBA students... READ MORE

 

Day Trading - Defining the Term - Trend by David S Adams

The term "trend" is bandied about with fierce regularity among traders of all types. Long-term traders look at trends in a far different perspective than short-term traders. Which leaves most traders, especially novice day traders, in a quandary. In general, a market trend is the tendency of the market to move in one direction for a period of time... READ MORE