E-mini trading do's and don't's

They can easily apply to trading other instruments as well, but since I am an e-mini day trader, I chose to focus on this particular trading vehicle.

Here are some of them that I am sure many an e-mini day trader can relate to. The list is hardly complete and I am sure that the reader can come up with some do's and donot's of his or her own.

Let us start with the do's.

1. Do try to start your day trading session with a good trade, so don't rush with your first trade as it may set the tone for the rest of the day and you want this tone to be positive.
2. Do not rush with your other trades either.
3. Do decide where you take only long trades and where you take only the short ones and stick to it, especially if you are a beginner.
4. Do review your trading rules and trading setups frequently, preferably every day before you start your trading or the night before.
5. Do observe and be aware of your bad habits, but try to cultivate the good ones.
6. Do keep a trading journal in which you note your bad and good habits, their impact on your trading and your overall progress as a trader.
7. Do limit your trading or stop it entirely, even on a simulator, if you see that your trading discipline is poor because your next mistake can be a very costly one.
8. Do know in advance where or when to exit your trade and do exit it even as a way to practice self-discipline.
9. Do practice on a simulator before committing to actual trading, and the more you do can it the better.
10. Do practice your self-discipline because that is often what makes or breaks traders.

Let us address the don't's now.

1. Do not change your trading methodology on a whim, but stick to it for a longer while for it is the constant practice that makes a good trader first and foremost and not some magic indicators.
2. Do not start live trading until you are sure you can trust your self-discipline.
3. Do not start live trading until your bad trading habits are eliminated.
4. Do not start live trading until you are profitable at least 4 weeks in a row.
5. Do not trade with the money you cannot lose without affecting your lifestyle.
6. Do not trade when you are ill, but take a break to recuperate as fast as possible.
7. Do not get back at the market after a losing trade, but use this as an opportunity to practice calm and equanimity.
8. Do not risk more than 5% of your account on a single trade, less is even better.
9. Do not forget to exercise to stay as mentally agile and relaxed as possible, so use the time between the trades to stretch out or even work out or just rest for a while.
10. Do not forget that trading is about making money, so treat it as a business and not as a hobby.

I can throw in a few more donot's quite easily. You want more? Well, why don't you come up with your own list and this way you may actually benefit more than by reading this text and nodding in agreement. But here is one more just to get you started.

11. Do not try to capitalize on your mistake hoping that a misguided trade might still turn into a winner, but exit it gracefully, at a breakeven or even with a small loss. Staying in a dubious trade makes little sense and exiting it quickly and, preferably, wisely, is the best thing to do.

And here is one more do (and a shameless plug too): do get yourself KING, so that you can start your e-mini trading career equipped with sound trading knowledge and robust trading tools.