Preparing to day trade e-mini contracts has developed into one of the red-hot online businesses on the Internet . Unfortunately, a great number novice traders enter the e-mini day trading arena with limited or no experience and are disheartened in the disastrous results of thier trading . I make it clear that e-mini trading is a acquired skill and not an congenital ability. So it is crucial to engage in some preparation before embarking on a course to day trade e-mini contracts.

 First and foremost , a new e-mini day trader should check out and choose a well documented and profitable day trading method . This is not necessarily an easy job , because there are an array of day trading systems and some are priced unbelievably high. Spending time on some of the trading chat boards and inquiring about the quality of various trading systems is a wonderful way to get some feedback on which course is considered successful . Even then, you may need to examine each recommended course and interview the owner of the course. Some imperative questions to ask might be:

1. What are the proprietors credentials and trading experience that qualify him or her to instruct others on trading styles ?

2. What is the general success rate for past novice traders of his or her of course?

3. What is the cost of the course and are there continuing charges to remain an active member?

4. Will the course require the new trader to buy proprietary software to trade with the particular system being marketed ?

5. What is the length of time it takes from the onset of the course until a trader can profitably trade e-mini contracts?

There are many trading systems that debate the merit of demo accounts, I highly recommend them. The trouble most individuals have with e-mini day trading demo accounts is that they are inclined to not remain faithful to the trading system they have spent time learning . They generally over trade or develope ideas they have that are not based upon sound methodology. This can result in unsound habits which may carry over to trading with actual money. The solution to this dilemma is an easy one; you should require the trader to trade the demo account exactly as you trade your live account, that is, the account you plan to trade with actual money.

Time tested and profitable methodology and a a great amount of successful practice time on a demo account is an superb method to prepare a potential e-mini day trader to trade successfully and profitably. It is paramount to have a plan before you embark on a career to trade. As I stated at the onset of this essay , day trading e-mini contracts lacking preparation will almost always cause failure and loss of your capital.

The days of buy and hold stock investing maybe over forever. In the past, it used to work well. But not anymore. Remember the saying, a rising tide lifts all boats. So when there was a general uptrend in the stock market, it would naturally lift almost all the stocks with it. The longest uptrend in the US Stock Market started from 1950s and lasted till maybe 2000! During these five decades, the stock market was in a uptrend that lifted almost all the stocks with it.

Now, market are ruled by extreme volatility as that shown on 6th May 2010 when the DOW JONES crumbled 1000 points and than made a return by the end of the day. New stock trading strategies are needed. In his free report, The PARALYSIS OF ANALYSIS Paul Lemal shows you those news stock selection and market timing strategies that can give explosive returns:

** Why it is crucial for you to understand the DNA of a stock and how it can make a difference between 300% return and 30% return .

** How you can avoid exiting a trade too early and at the same time avoid overstaying your welcome by the market  .

** Little clues that can tell you a lot about the stock fundamentals .

Master killer stock selection and stock market timing strategies with this two FREE Stock Momentum Trading Reports-The Triton Convergence and the Paralysis of Analysis. Watch this weird 30 minutes Stock Trading video. Turn $200 into $100K in just 1 month with this FREE Penny Stock Trading Report that shows how to find killer penny stocks! Momentum trading is the name of the game. In momentum trading, you look for stocks that are about to make monster move in the market. What you need to do is to find those killer stocks on the verge of making a massive breakout either upside or downside and then capitalize on that. This method works!

If you are outside of the trading world then it is unlikely that you know fully what penny stocks are. If you speak to different brokers they may give you different answers and you will typically find that they do not cost only a penny, or even pennies to purchase. But they can be lucrative for traders who understand them and know what they are doing.

Here’s a quick, easy burst of information, to help you start to get to grips with penny stocks. Hopefully this will give you some pointers for further exploration and research, rather than a definitive understanding.

Defining Penny Shares

Penny shares are the well known name, for what’s more formally known as a micro cap equity. In its simplest terms, it’s an inexpensive stock, a share which trades at a lower worth than blue chip, high cap items.

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In the United States the SEC define a micro cap equity as a share which trades at a unit value of less than $5.00. That is an official definition, however there are different, looser definitions, which are utilized by investors and penny stock brokers, depending on their place throughout the penny stock market.

In case you are speaking to a broker or investor about penny stocks, they may very well be speaking about shares where the value, per unit, is lower than a fraction of a cent. You might also be taking a look at stocks which are traded on more obscure markets, with caps of $25-$50 million, or less, relying on the definition applied.

Of course, you don’t have to be in the US, to be talking about penny shares, as they’ve parallels, all all over the world, where low-cost stocks and shares operate, in markets that help their trade. Top penny stocks can go on to be big name, blue chip shares, as a company grows and the markets they trade on can change, over time.

Because the definitions used are reasonably versatile, in lots of circumstances you’ll typically discover that there are some contradictions to be found, in the way that these shares are defined. For instance, you may have shares that trade in obscure markets, with high unit costs. Similarly it’s possible you’ll discover companies with high market caps, buying and selling at costs well under $5.00 per share.

What Markets Trade Penny Stocks?

Penny shares may be traded on all kinds of markets. In the United States, this will mean anything from the NYSE and NASDAQ to the OTC-BB and Pink Sheets. Penny Shares are more likely to be found on the OTC-BB and Pink Sheets, because the larger exchanges are likely to concentrate on higher market cap companies.

Small cap shares are usually found where the rules and fees for exchange listing are lower. The Pink Sheets have fewer restrictions than the OTC-BB, so you’ll discover them in greatest numbers there. You’ll discover that some brokers desire to not deal with the Pink Sheets, however you’ll discover loads of OTC-BB Brokers, with a complete record of OTC shares available.

This should be enough to get you started but be aware that trading these shares will take further reading and implementation if you intend to become an active trader. There can of course be a lot of risk involved and you should be following a proven system if you hope to make it work.

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Wheat Market Review Report for 7/26/2010

September Wheat finished down 6 3/4 at 589 1/2, 6 3/4 off the high and 5 up from the low. December Wheat closed down 6 1/4 at 621. This was 5 1/4 up from the low and 6 off the high.

December wheat traded lower today following a lower start in Europe. Traders said that the negative weather situation in Europe and the Black Sea region remains in place with the exception of cooler weather in Kazakhstan, but one analyst noted that this is no longer fresh news. Traders said that the lower start in Europe generated profit taking in Chicago, but they noted that losses may have been limited today by a lower dollar. Chicago wheat lost ground to KC wheat in the December contracts today, but Chicago mainly kept pace with losses in the December Minneapolis contract. This week’s export inspections for wheat were 15.409 million bushels, down from 23.512 million last week. Inspections need to average 19.491 million bushels each week to reach the USDA’s export projection for the 2010/11 marketing year.

December Oats closed down 2 1/2 at 262 1/4. This was 5 3/4 up from the low and 4 1/4 off the high.

Soybean Complex Market Commentary for 7/26/2010

August Soybeans finished down 18 3/4 at 998 1/4, 17 1/4 off the high and 4 up from the low. November Soybeans closed down 15 1/2 at 966. This was 5 up from the low and 15 3/4 off the high.

August Soymeal closed down 6.7 at 293.2. This was 1.4 up from the low and 6.4 off the high.

August Soybean Oil finished down 0.27 at 38.8, 0.39 off the high and 0.13 up from the low.

November soybeans closed sharply lower on the session and closed at the lowest level since July 14th as a less threatening weather outlook and talk of steady to improving crop conditions helped to pressure. Meal also traded substantially lower on the day, posting a significant loss versus soybean oil in the process. Traders said that today’s weakness stemmed from a favorable weather forecast and ideas that the US soybean crop may have remained steady or slightly improved in quality over the past week. Last week’s good-to-excellent rating in soybeans stood at 67%. Traders noted that the market shrugged of potential support from a lower dollar and a fresh sale of soybeans to China. The USDA announced this morning that 226,000 tonnes of US soybeans were sold to China for delivery during the 2010/11 crop marketing year. This week’s export inspections for soybeans were 6.595 million bushels, down from 9.667 million last week. Inspections need to average 12.105 million bushels each week to reach the USDA’s export projection for the current marketing year.

Corn Market Commentary for 7/26/2010

September Corn finished down 7 1/4 at 364, 7 3/4 off the high and 2 1/4 up from the low. December Corn closed down 6 1/2 at 378. This was 2 1/4 up from the low and 7 1/2 off the high.

December corn moved below its 100-day moving average overnight for the second trading session in a row before extending its losses into the day session. This was followed by another minor new low for the day in early afternoon. December corn traded at its lowest level since July 1st today with traders crediting the losses to an improved weather outlook for the US corn crop. This included ideas that last week’s weather was more favorable than initially expected, and traders are looking for today’s Crop Progress report from the USDA to show the good-to-excellent quality rating of the US corn crop to be unchanged to slightly higher than last week. Last week’s good-to-excellent rating was 72%. This week’s export inspections for corn were 42.421 million bushels, up from 40.760 million last week. Inspections need to average 50.785 million bushels each week for the remainder of the 2009/10 crop marketing year in order to meet the USDA’s current export projection.

September Rice finished down 0.105 at 10.17, 0.13 off the high and equal to the low.

After reading ï»¿today’s recap,traders might want to take a peek at the commercial traders momentum.  The Commercial Trader momentum can be tracked by using the Commodity Futures Trading Commission Commitment of Traders reports.  Our idea is that, in a value driven commodity futures market no one knows fair value like the people who produce it or, have to use it.  In fact, it is precisely their sense of value that provides the commodity market’s rhythmic meanderings that swing traders love so much.  Let’s face it, producers know when their product is overvalue and it should be sold just as well as end line users know when they should be stocking up at low prices.  Therefore, trader should be able to incorporate this valuable information into their future market education.

The daily commentaries provide a review of each commodity’s traded price activity, an analysis of the factors that influenced price activity, a summary of any reports released that day, and a look ahead at the schedule for the next day.  CME Group provides market commentaries for corn, wheat, soybeans, gold and silver.   The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

Andy Waldock circulates this blog.  Andy Waldock is a financial advisor, broker, asset manager, trader, and analystfor Commodity & Derivative Advisors, located in Sandusky, Ohio.  Therefore, Andy Waldock may have positions for himself, his customers, or his family in any commodity future market discussed. The blog is meant for educational purposes and to develop a dialogue among those with an interest in the commodity future markets. The commodity markets employ a high degree of leverage and commodity trading  may not be advisable for all investors.  There is considerable risk in investing in commodity futures.  If you are interested in reading other published articles, commenting  on his writings or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.

When traders first look at an E-mini chart , e-mini day trading seems to be relatively elementary. The price movement on the e-mini contract looks to move in a serpentine pattern, to up and down . The facts are quite different though , as e-mini day trading can be complicated without good training. Knowing when to initiate a trade and exit a trade is a well honed skill and takes considerable time and experience to execute properly .

First and foremost , the majorioty of traders traders should concentrate on the chart price movementt . It is crucial to identify areas of primary and secondary support and resistance. While many traders ignore the price movement and stick with trading primarily with indicators and oscillators, they are ignoring the most helpful primary indicator, the price of the e-mini contract being traded.

Oscillators and indicators are another crucial tool in the e-mini day trader’s trading skill set . But often traders are inclined to use too many oscillators and indicators and find themselves with too much info to understand . I advocate using two or three oscillators to substantiate the price movement noticed on the chart. In my trading, the commodity channel index is of prime importance and a very exact indicator of both market noise and potential trade set-ups . My secondary indicator is the slow stochastic, which I alter with some untraditional settings. With the commodity channel index as my primary indicator, I use the slow stochastic to confirm potential trades shown by the commodity channel index. It’s really simple stuff, but it all is initiated with observing the price movement on the chart.

I trade mainly with the trend, as countertrend trades can often be very low probability trades. This is a very difficult technique for many beginning traders to learn , as the oscillators and indicators often show very tantalizing trades against the trend. Learning to maintain the discipline to avoid these counter trend trades is a definite skill to be learned. Which is not to infer that all countertrend trades are always losing trades, but probability proscribes that a greater number of countertrend trades are losing trades. As you can see, probability is an important component for all traders to utilize . You will not be able to take every profitable trade, but should be able to pick out enough potentially profitable trades to profit handsomely.

As an aside, I also employ the NYSE tick indicator. This is a phenomenal indicator, and is a set up for the sole countertrend trade I utilize . Oddly enough, it seems the NYSE tick is a lightly utilised indicator for most traders, yet it is one of the most effective indicators and supplies a wealth of information for traders who are trading the financial index e-mini contracts.

All of these techniques are part of the E-Mini Trading Professor System. The system is designed primarily for beginning traders and traders who would like a fresh start on their current system. Often times, e-mini day trading systems vary in technique and some systems resonate more intelligibly for traders than others. The E-Mini Trading Professor System is a comparatively simple system that can be mastered with diligent study and practice on a demo account.