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Futures trade with high leverage in comparison to the stocks making up the indexes. Buying 100 shares of the SPY (the ETF that tracks the S&P 500 index) would cost nearly $29,200 at the time of this writing. Even with 2:1 margin, a trader would need $14,600 to maintain the position. To trade one contract of the ES (the S&P 500 eMini future), a trader only needs $6930. For an intraday trade, the margin could be as low as $500! The first half hour to hour of the equity markets can be very volatile. Sometimes it seems like prices are fluctuating wildly with no rhyme or reason. However, there is a technique that could help you predict the morning price movement and even potential price reversals. This technique could be used for...

The decision to trade online or through a full service broker will undoubtedly make a large impact on your bottom line. However, the impact may or may not be what you had in mind. If you aren't ready to begin placing your orders online on your own, despite saving money on commission it may be the most costly mistake that you ever make. While commission is baggage, a slightly higher rate it may be worth every penny assuming that your broker is truly giving you what you are paying for - reliable and efficient execution along with quality guidance in strategy and analysis. Hopefully this article will open your eyes to the realities of transaction costs. While experienced traders should look for low rates with quality service, novice...

Aside from charting tools and market research, there are two important but often overlooked decisions for a trader to make; choosing a brokerage firm and a specific broker. Each of these decisions are capable in having a profound impact in your overall trading results and you owe it to yourself to take the time to make an educated judgment. Choosing a brokerage firm Deciding on a brokerage firm is a significant decision and shouldn't be taken lightly. Before committing to a firm it is imperative that you research their services, experience, trading platforms and commission structure but more importantly whether your trading style and personality will be compatible. For example, a beginning trader shouldn't look to a deep discount...

In the first part of this article, which can be read here, we looked at choosing an instrument and timeframe to trade, as well as establishing the set-up and entry rules. In the second and final part we will consider how to establish exit rules as well as various filters and money management rules to maximise the profitability of the system. 6. Stop Loss Rules. Our strategy already has a natural stop loss in the stop order that does not get filled. The objective of the strategy is to capitalise on those days where the high or low for the day is in place early (9.30-11.45am). If we enter a trade on a breakout of either the high or the low and then the market subsequently hits the other stop we know that our trade is invalid. We know...