The Best Emini Traders
Are Master Chart Readers
What Is Chart Reading
Chart reading is the art of finding where to place a trade. Good emini traders know how to read a futures trading chart. Throughout the trading day, a good trader will always be looking for a sign that tells him/her where to initiate a trade.
So, what exactly will this trader be looking for? She will be looking for a signal, a special signal, based on price action. As prices form chart patterns, she will patiently look for a signal that informs her that prices will have a high probability to move in a particular direction in the near future.
There are actually two considerations when looking for the signal. The first is to seek a clue that prices will move in a particular direction, and the second is that prices will not move in the opposite direction. That might seem to be saying the same thing, but In the case of trading, it isn’t.
The Best Traders Are Best Chart Readers
Experienced traders know that although they consider the probability of an impending price movement in a particular direction, they also must anticipate a degree of wiggle room wherein prices may fluctuate within a certain range prior to making the anticipated move.
Having found a signal, our knowledgeable trader will place a trade in the direction of the anticipated movement, allowing for a certain amount of movement to the opposite side, thereby allowing for a degree of loss during the period of price fluctuation. The degree of loss allowance depends on several factors and risk tolerance.
Patience is essential when reading charts in real-time. The best traders wait patiently for a signal to develop. It may be only a few times a week. She will exercise patience and place trades only where she determines the trade will have a high probability of a profitable result.
What if she’s wrong? This is a consideration that accompanies every trading decision. The trader always anticipates that her assessment may be incorrect, and prices will move in the opposite direction. Her evaluation of the trade is made in accordance with the rules she adopts in her trading regimen. Foremost is the rule to exit a trade if a loss exceeds a certain, predetermined amount.
The trader’s experience in reading the chart informs her of the existence of the formation of a signal. She places her trade. If the price moves in her direction, the trade becomes profitable. If the price moves in the opposite direction, she allows a certain amount of loss to be incurred. If the negative price action exceeds the level of fluctuation she allowed for when placing the trade, she exits according to her trading rules, thereby limiting the degree of loss.
Separating The Best From The Rest
We see that a trader’s ability to read the chart is key to his/her success. Just as she entered the trade according to a signal, she carefully manages the trade while funds are at risk, and exits based, again, on the trader’s chart reading skill.
What separates skilled traders from the others is their ability to read price charts. That, and also another quality of experienced traders – they exercise patience. A skilled trader typically does not place as many trades as the average trader. Most traders place many trades each day. The really skilled trader waits until they see the most highly probable setup before placing a trade. That may occur only a few times a week.
Learn to read Emini charts to find profitable trade entries and exits. Trading is an extremely valuable skill and the key to trading – consistent, profitable trading – is the ability to read price charts.
Chart reading allows good traders to earn enough money in just a few hours a day to live comfortably without fear of running out of money.
