Stock Market Index Trading can be one of the most profitable...or most costly
exercises you will ever undertake. While trading a basket of Stocks has it's
advantages, such as removing the risk of any single company you own Stock in going
bust and taking all of your money with it, Stock indexes can tend to be highly volatile,
especially the smaller ones.
Using technical analysis and a proven trading strategy
for timing the entries and exits when you are Stock Market Index trading can vastly improve your results and profits...if you
know how to analyze Stock trends and patterns.
The S&P 500 Stock Index is probably one of the worlds best know indexes, and it has a
long history of strong trends that have made and lost traders fortunes over the
By trading a managed fund that tracks the Index (such as the Vanguard Funds), options over the Index,
or Futures Contracts over the Index (such as the S&P Emini Futures
contract), we can participate in the movements
of the market, either with or without leverage.
Trading The Vanguard
500 Stock Index Fund...
The easiest way to trade a Stock Market Index is to simply buy a managed fund like the Vanguard
500 Index fund.
This works fine when the trend is up, but what about when the
trend is heading in the other direction?
There are several funds that trade inversely to their underlying indexes. One of these can
be used to trade the downside when prices are falling, but the problem with many
of these funds is you have no leverage.
Stock Market Index Trading Using Derivatives...
is why many traders move on to Stock Index Trading through derivatives (such as
options and futures contracts) as an alternative
to simply buying a Vanguard Fund or other managed funds.
The most important thing you'll need to remember if you want to get the
leverage of Options or something like the Emini futures market is that you will have to learn
to trade profitably.
Because leverage magnifies both your profits and your losses, it's critical
that you have a firm grasp of the fundamentals of good trading if you are going
to make Stock Index trading part of your investment plans.
An understanding of technical analysis and knowing where to enter and exit
trades (and where to place stop losses) will help you to maximize your profits
and minimize your losses
The bottom line is that you must possess the skills of a profitable trader before the Emini or
any other financial product is going to help you create wealth.
By studying the lessons available free here on this site and by subscribing
to our Free 5 Day Futures Mastery Mini Course
you will be in a position to trade profitably,
because you will know, with a high degree of certainty, the position of the
market, what the current trend is and
how to trade it.
The lessons apply equally to Stock Indexes, Stocks and all liquid markets and will
give you a good grounding in what it takes to become a successful trader.
You'll learn the 5 key ingredients to successful trading and how to apply
them to your preferred futures market no matter what your current level of
It's easy to subscribe. Just put your First Name and Primary Email
Address into the form below and click on the Free Instant Access button.
Copyright 2016 Futures Trading Coach
Trading Made Easy LLC
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADE PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF THE HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.