Wed ES MES Technical Analysis, Tips, Key Levels & Trading System 01/01/2025
Preparing ES Emini and MES Micros Traders To Trade In Our S&P Trading Room
Creating a Comprehensive Trade Plan
Running Your Trading Business
Trading is not just about entering and exiting trades—it’s about running a real business. To treat trading as a business:
- Vendors and Accounts: Decide whether to use proprietary (prop) firms, a cash account, or a combination. Avoid spreading yourself too thin with multiple prop firm accounts.
- Simulation Accounts: Start with simulation trading if necessary. Apply the same risk parameters as you would with a live account. For instance, if you set a daily loss limit of $300 in live trading, use the same limit in simulation.
- Progression Strategy: Map out your path to funding a cash account, whether it’s through prop firm payouts or direct contributions.
Defining Hours of Operation
Analyze your trading strengths and weaknesses:
- Optimal Times: Are you more effective in the morning or afternoon? Identify the days or times when you perform best.
- Avoiding High-Risk Days: Stay away from trading during events like CPI releases, FOMC announcements, non-farm payrolls, and option expirations. Mark these days on your calendar and commit to avoiding them.
Selecting Instruments and Core Setups
- Instruments: Choose a specific instrument, like the Micro ES (MES), and stick to it.
- Core Setups: Identify 1–4 setups that you excel at. Take screenshots of these setups for your trade plan and analyze what makes them successful. Similarly, note setups or trades that consistently cause losses and remove them from your strategy.
Risk Management
Risk is the cornerstone of successful trading:
- Acceptance of Risk: Recognize that each trade has the potential to be a full loss. Always use stop losses and position sizing to protect your account.
- Daily/Weekly Loss Limits: Establish clear limits, such as a maximum of $500 per week, and adhere to them strictly.
- Leverage Metrics: Use tools to calculate and control leverage effectively. Stick to disciplined trading strategies like the three-contract system or adding to winning trades only.
Community and Continuous Improvement
- Finding a Trading Community: Surround yourself with like-minded traders who trade the same instruments and strategies. Shared insights and accountability can refine your approach.
- Journaling and Adjustment: Maintain a trading journal to identify recurring patterns in your successes and failures. Use this data to adapt and improve your trade plan.
Living Document
Your trade plan is not static; it evolves as you grow as a trader. Regularly revisit and revise your plan based on insights from your journal and market experience.
MORE INFORMATION:
Keywords:
trading plan, risk management, trading journal, trading strategy, futures trading, E-mini trading, Micro ES trading, MES, leverage, simulation trading, prop firms, stop loss, trading community, market analysis, core setups, trading discipline, trade progression, non-farm payroll, FOMC, CPI, option expiration, day trading hours, swing trading.
SUMMARY:
- ✅ Treat Trading as a Business: Approach trading like running a business by choosing vendors carefully, using simulation for practice, and setting clear risk parameters.
- ✅ Define Hours and Instruments: Identify optimal trading hours and stick to a specific instrument, such as the Micro ES, to maintain focus and precision.
- ✅ Risk Management is Crucial: Implement strict daily and weekly loss limits, use stop losses, and never over-leverage. Always protect your downside.
- ✅ Document and Analyze Your Trades: Journaling helps track successes and failures. Use this information to continually update and refine your trade plan.
- ✅ Join a Supportive Community: A community of like-minded traders provides valuable feedback and accountability, helping you stay disciplined and improve over time.
Commodity Futures Trading Commission. Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Testimonials Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
Risks Associated With Trading
IMPORTANT DISCLAIMER
By continuing with the Core Strategy Academy, Discord, and Zoom you also acknowledge and accept the following information:
The material in this course is general in nature. It does not constitute personal investment advice or personal trading advice. Any advice provided is general advice only and does not take into account an individual's risk profile or financial situation.
The author of this course content is not legally qualified to give personal investment or trading advice.
Although the author is an experienced and consistently profitable trader and the information offered within this course is given with the best intentions and made to be as accurate as possible, the author has no idea what your financial situation is and everyone has a different tolerance for risk and different investment goals.
The purpose of this course is to teach you how use technical analysis to assist in your trading, it is not intended to teach you how to trade even though many lessons do share practical techniques based on real-life trading experience.
The lessons in this course are provided as hypothetical trading examples, not necessarily ones that are profitable or robust. While the creator of these lessons has used some of these techniques to generate profits in the past, it is not guaranteed that you will experience the same results and past performance is not indicative of future performance.
Trading involves the risk of loss as well as the potential of profit. It is generally advised by successful traders to never risk more money than you can afford and are willing to lose - both on a trade-by-trade basis, and a portfolio basis.
You should seek independent financial advice from a qualified professional in deciding if trading is appropriate for you. Please also consider the appropriateness of that professional advice in light of your own objectives, financial situation or needs.
ALL MATERIAL HAS BEEN PREPARED BASED ON INFORMATION BELIEVED TO BE ACCURATE AT THE TIME OF PUBLICATION. SUBSEQUENT CHANGES IN CIRCUMSTANCES AND THE MARKET MAY OCCUR AT ANY TIME AND MAY IMPACT THE ACCURACY OF THIS INFORMATION.
PAST RESULTS ARE NOT INDICATIVE OF FUTURE PERFORMANCE.
Information containing hypothetical or simulated results has limitations and may not represent actual trading. Since the trades presented in simulated backtests have not actually been executed in the market, the results may under or over-compensate for the impact (if any) of certain market factors, such as lack of liquidity, large spreads, slippage, commission costs etc.
NO REPRESENTATION IS MADE THAT ANY TRADING STRATEGY WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN IN HYPOTHETICAL BACKTESTING RESULTS.
You should carefully consider your objectives, financial situation, needs, psychological and emotional fortitude, and any other relevant personal circumstances when determining whether or not trading is suitable for you. Trading is not for everyone, and for some there are much easier ways to make money from a side-hustle or career more suited to their personality and situation.
Trading is exceptionally difficult to succeed at, with a remarkably high failure rate. So please do your own due diligence to protect yourself and your capital from unnecessary losses and damage. Seek advice from a qualified professional (such as a financial advisor) if you feel uncertain about your decision to begin trading.
THE RISK OF LOSS IN TRADING SECURITIES IS LIMITED TO THE AMOUNT INVESTED. HOWEVER, THE RISK OF LOSS IN TRADING DERIVATIVES (SUCH AS FUTURES, CFDS, FOREX ETC) MAY NOT BE LIMITED. THIS MEANS YOU MAY LOSE MORE THAN YOUR ACCOUNT BALANCE OR THE AMOUNT REQUIRED TO HOLD AND CONTROL THE PARTICULAR DERIVATIVE, ESPECIALLY WHEN EMPLOYING LEVERAGE.
THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINED IN FUTURES, OPTIONS, FOREX AND CONTRACTS FOR DIFFERENCE CAN WORK AGAINST YOU AS WELL AS FOR YOU. IN OTHER WORDS, THE USE OF LEVERAGE IS A TOOL THAT CAN LEAD TO LARGE LOSSES AS WELL AS LARGE GAINS. WHEN USED PROPERLY THIS CAN BE AN ADVANTAGE, BUT WHEN USED IMPROPERLY AND CARELESSLY IT CAN RESULT IN CATASTROPHIC LOSSES - OFTEN RAPIDLY.
This brief statement cannot disclose all the risks and other significant aspects of securities and derivatives markets. It also does not cover the many risks inherent in cryptocurrency trading - such as lack of regulation, potential liquidity issues, high volatility and various third-party risks. It is YOUR responsibility to research and decide whether or not to accept the risks involved in the particular market or asset you choose to trade or invest in.
IT IS YOUR RESPONSIBILITY TO CONSULT YOUR FINANCIAL ADVISOR TO DETERMINE WHETHER TRADING IN SECURITIES, CRYPTOCURRENCIES OR DERIVITIVES PRODUCTS IS APPROPRIATE FOR YOU IN LIGHT OF YOUR OWN FINANCIAL CIRCUMSTANCES.
Good luck with your wealth creation journey, and please take this information seriously. The graveyard of failed traders is large and ever-growing, and that is largely due to these warnings being ignored and the many dangers of trading not being respected.