Although insider trading is illegal, OUTSIDER trading is not!
Outsider trading is trading using information that is available to everyone
Insider trading is illegal, as everyone knows, but it is one of the ways that certain well-connected people have been known to make money trading securities. Why is insider trading illegal? Insider trading is illegal because those who trade on inside information put other traders at a disadvantage.
One of the bedrock principles of open markets is that all participants are on a level field, with no one having an advantage over anyone else. But insider trading is a powerful lure for people who have insider information and can use it to take advantage of everyone else. Some famous people have been found guilty of insider trading: people like Steve A. Cohen, whose hedge fund had to pay nearly $2 billion in fines. Martha Stewart was also found guilty of insider trading and spent months in prison.
Although insider trading is illegal, OUTSIDER trading is not! What is outsider trading? Outsider trading is simply trading using profitable information that is available to all other traders – not just one person. Trading on outside information does not take advantage of anyone else and therefore is not illegal. It is perfectly legal – and profitable, as seen in this video.
Anyone who wants to learn how to day trade S&P emini futures needs to have as much information as possible in order to help determine where to place a trade. Trading is not easy to do because it is impossible to know the future with any degree of certainty. But the market does give off signals and a wise trader needs to know how to interpret the signals. Market prices seem to move erratically, but with enough information, trading S&P emini futures can be done with a greater assurance of success. An S&P emini futures trader who has Information about market signals and knows how to use them makes knowledgeable traders much more successful than others who use “seat of the pants” method.
Some of the information that S&P emini futures traders should have are:
- The Trend
- The Intraday and / or Low
- The Calculated Trading Zone via Taylor’s Book Method
- The daily calculated range
- Support and resistance levels
- Stochastics
- Candlestick patterns
These are some of the bits and pieces of information every trader needs to have in order to assess a trade. Of course, that is not to say that even with all this information a trade will work out, but having this knowledge puts the odds of success more on the trader’s side.
Having as much information as possible gives S&P emini day traders a big advantage over “seat of the pants” traders. It cannot be stressed enough that without learning as much as possible about the market, it is highly unlikely that a trader will succeed at making money by day trading S&P emini futures, much less in a trading career.
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