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Do You Find Yourself Taking Too Many E-Mini Trades? You Might Be Overtrading

This article is really about high probability and low probability e-mini trades. The failure to distinguish between these two types of trades is often the cause of overtrading. Overtrading tends to chew up profits because you incur an inordinately high level of commissions. I will say this; your broker will love you, as he gets paid by receiving a portion of the commission charges to your futures trading account. One of the keys to being consistently profitable is to differentiate between trades that have a high probability of succeeding and letting that trade run versus taking lower probability trades that stand a greater chance of resulting in a trading loss.

It takes experience, education, and perseverance to correctly identify high probability trades. I think it is important to understand that you don’t always have to be in a trade. It is not unusual for traders to exit a trade and immediately start looking for another trade. Often times, there is not another good one to be initiated and the correct course of action is to sit on your hands. In my opinion, this is one of the most difficult skills to learn is discretion in taking e-mini trades. For some individuals, it is problematic to wait for the right for the right set-up come around, so they end up entering and exiting setups far too often.

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