E minis are a method that’s employed to trade an index such as the S&P500 but on a considerably smaller scale than trading the index themselves. An e mini enables you to get into the index contract at a fraction (about one fifth) of the cost of the full contract. This makes emini trading economical to quite a few more personal investors/traders and has allowed the market to really open up.

So besides being much more affordable to the day trader, here are some other factors which make day trading eminis so appealing:

* Online Trading – Emini’s are traded online

* Nearly 24 hrs a day – The e mini can be traded 23.5 hrs per day, 5 days per week (having said that the market is far more volatile and liquid in the course of the regular US trading hrs.

* Volatility and Liquidity – with the large quantity being traded on the market each day, the market is both volatile and liquid.

* Low Brokerage Rates – with online trading there is no necessity for human intervention when placing trades. There are many online brokerage firms who have the software and technology to place your bids, stops and sell instructions at the click of a button.

* Leveraged Product – being a leveraged product means that you pay a comparatively little amount but reap the benefits of a ‘large’ contract. So any little gains you make can translate into big profits. Even so, by the same token, any little losses you generate can also translate into big financial losses.

Even though day trading eminis is now open to a considerably larger group of traders, it’s still not a novice’s game. You need to get training on how to trade the e mini market and you absolutely need to make certain you practice by paper trading initially. Yes there is a lot of money to be produced in day trading eminis but there’s also a lot of income to be lost! Don’t jump into it without first understanding what you’re doing.

For more help on how to do emini day trading, check out our website at www.daytradingeminis.net.

One of the most important considerations when choosing an online trading service is the cost per trade. A brief look at a few of the most popular services brought to light that they charge between $4.95 and $9.95 per trade. Unless the more expensive one provides more and better services, go for the cheaper one. If you are a day trader you hope to make numerous small chunks of profit and paying too much per trade could well turn your system into a losing one.

Something else to consider is the range of investments they offer. All the major services offer the ability to trade in stocks, options, mutual funds and exchange traded funds. Most also offer retirement accounts and exchange savings plans. Not all of them offer the ability to trade in forex.

Something else to consider is the range of trading tools offered by the trading platform. A look at the ten most popular trading portals revealed that only two of them offered virtual trading. In our opinion this is a very important feature: there’s no better way to learn to trade than to use virtual money. You can learn all the tricks of the trade without risking anything.

Good quality charting software is an absolute must for any trader. If your online trading portal doesn’t offer this, you should look for another option. Without charts you will have to analyze rows and rows of data and you will become very confused in the end.

There’s many other important features, but the ones mentioned here are among the most vital to a trader’s success. There is no single best online trading solution ‘ in the end it depends on your needs and your trading style.

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Any good software package will have the ability to create charts. A chart is basically just a way to present movements in the price or trading volumes of a stock/currency/commodity in a graphical manner. There are various different types of charts. The simplest one is the line chart. Another very poplar type is the candlestick chart and many traders still have a preference for the bar chart.

The main advantage of using charting software is that it makes it very easy to see when a specific technical indicator generates a trade signal. A basic example is when the price of a commodity rises above the three week moving average. If you are connected to live price feeds these charts can be generated automatically by the software ‘ setting you free to simply react to certain trading signals.

Back testing is another important feature that helps traders to assess the potential profitability of a trading system. With back testing you can test a new trading system you have developed against historical data to see how it would have done under different real life scenarios.

If you find a system that works well on back testing, you can use optimisation to fine tune it further to get the best possible results. There is a danger involved here: the past very seldom repeats itself in exactly the same way, so your system might work 100% on historical data, but somehow never make money for you. That is called over-optimisation.

The ability to connect to a live data feed is also quite important for technical analysis software. Most of these data providers don’t only provide live prices, but they also send you lots of market news, trading tips etc. If you are working form home this will be very useful since it might be the only way for you to be stay on top of vital market information.

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