Coaching Session

ONE

Welcome to the EMINI SUCCESS FORMULA 2.0

Mentoring Program!

You will find this the most comprehensive “real world” training

program available for trading in the E-Mini Futures markets – or

any market, for that matter.

The most efficient way to your own financial independence is by

following the formula. Stay on path… and follow the logical

sequence of progression I have outlined here for you so that you

can become a consistently profitable trader and achieve your own

financial independence.

Coaching Session ONE

Coaching Session ONE

Trading Plan

Execution

Program

Summary

Counter-Trend

Trade Set-Ups

Trade

Management

Initial Trend

Entry

Floor Trader

Pivots

Fibonacci

Retracements

Trader Business

Plan

Traits &

Survival Skills

Successive

Trend Entries

Starting The

Trading Day

Trading Tips &

Market Insights

Powerful Price

Pattern Trades

Powerful Price

Patterns Volume Analysis

Key

Times Of Day

Keltner Bands &

Key Moving

Averages

NYSE Tick Market Flow

Analysis Method

Types Of Orders

& Placing

Orders

Market

Foundation &

Building Blocks

Money

Management &

Trade Sizing

Trading Styles

What Are The

E-Mini Futures

Steps Of A

Successful

Trader

Trading

Thoughts &

Beliefs

Trading

Psychology

The Master Trader™

Income Generating Strategies™

Trading Success Principles™

Trading Essentials Framework™

Introduction

A Trader’s Mindset is his/her most important EDGE or his/her largest liability.

Many fortunes have been lost in the trading world by those who do not

understand how to harness the power of their minds. Why do 70% of lottery

winners go broke after just a couple of years? It’s the same thing – their mindset.

Through enough time and exposure to the markets, sooner or later, you will learn

that there are no guaranteed “Holy Grail” systems in the market – regardless of

their marketing messages.

A great trader is built from within.

The Holy Grail of trading is located between your ears.

It’s a journey that no active trader ever truly finishes; once they accept that successful

trading comes from the inside, they relish the journey more than the destination.

Trading

Psychology

The TRADING CONCEPTS (TCI) Trader's Mindset

1) Your Trading Objective/Goal is to Trade:

Calm, Confident, Consistent, and Profitable!

Trading is Easy, Simple, and Stress-free. Execute your Trades flawlessly.

2) Disciplined, Focused, and Confident:

Remain Disciplined to do what needs to be done over and over without hesitation.

Remain Focused on the information that helps you spot opportunities to make a profit.

Remain Confident in your trading methodology.

3) Think in Probabilities:

If the market is offering you a legitimate edge, determine the risk and take the trade

without the slightest reservation or hesitation.

The Trade either works or it doesn't. In any case, you wait for the next edge to appear

and go through the process again and again.

If your edge puts the odds of success in your favor, then every loss puts you that much

closer to a win.

4) All you need to know is:

the odds are in your favor before you put on a trade (defined by your edge);

how much it's going to cost to find out if the trade is going to work;

you don't need to know what's going to happen next to make money on any trade; and

anything can happen.

Trading

Psychology

The TRADING CONCEPTS (TCI) Trader's Mindset (continued)

5) You are a Consistent Winner because:

You objectively identify your edges.

You predefine the risk of every trade.

You completely accept the risk or You are willing to let go of the trade.

You act on your edges without reservation or hesitation.

You pay yourself as the market makes money available to you.

You continually monitor your susceptibility for making errors.

You understand the absolute necessity of these principles of consistent success and,

therefore, you never violate them.

A Winning Attitude is a positive expectation of your efforts, with an acceptance that

whatever results you do get are a perfect reflection of your level of development and

what you need to learn to do better. You don't have any reason to think less of

yourself when you do make a mistake. Mistakes simply point the way to where you

need to focus your efforts to grow and improve yourself.

FOCUS ON THE PROCESS and NOT THE OUTCOME!

Trading

Psychology

Recommended Readings for Further Study

The following materials are resources that can be helpful to understand this science,

and they continue to provide insight and wonderment:

Trading in the Zone by Mark Douglas

The Disciplined Trader by Mark Douglas

Mastering Trading Stress by Ari Kiev

The Mental Strategies of Top Traders by Ari Kiev

Hedge Fund Masters by Ari Kiev

Super Trader by Van K. Tharp

Secrets of the Millionaire Mind by T. Harv Eker

The Secret

Psycho-Cybernetics by Maxwell Maltz

Think and Grow Rich by Napoleon Hill

If you would like to accelerate your development with some professional help, then

you might want to consider Norm Hallett’s “Disciplined Trader” program at

www.thedisciplinedtrader.com

Trading

Psychology

What Are E-Mini Futures?

E-Mini Futures track the most popular broad-based stock index benchmarks in the

financial world. Launched between 1997 and 2005, E-Mini Futures are among the

fastest growing products in the industry.

The four most popular E-Mini Futures consist of the following:

E-Mini S&P 500

E-Mini NASDAQ-100

E-Mini Dow

Russell 2000 Index Mini

All E-mini Futures contracts are traded completely electronically via electronic order

management software on a PC or through a registered commodity futures broker over

the telephone.

E-Mini Futures are appealing because

of their…

excellent liquidity, and

around-the-clock availability.

What Are The

E-Mini Futures

The world’s most actively traded stock index futures contract,

with over 2.2 million contracts traded on average per day.

E-Mini S&P 500 (ES) E-Mini NASDAQ-100 (NQ)

Russell 2000 Index Mini (TF) E-Mini DOW (YM)

Contract Size: $50 x E-Mini S&P 500 Futures price

Tick Size: 0.25 index points = $12.50 per contract

What Are The

E-Mini Futures

Contract Size: $20 x E-Mini NASDAQ-100 Futures price

Tick Size: 0.25 index points = $5.00 per contract

Contract Size: $5 x E-Mini DOW Futures price

Tick Size: 1 index point = $5.00 per contract

Contract Size: $100 x Russell 2000 Index Mini Futures price

Tick Size: 0.10 index points = $10.00 per contract

What Style of Price Charts Fits You?

Price Charts are the most direct and easily accessible method of seeing overall supply

and demand in the markets. Most Vertical Bar Charts and Candlestick Charts are a

reflection of the OPEN, HIGH, LOW, and CLOSE of Price Action over a given

interval of time.

TICK Charts reflect Price Action over a given number of transactions (or trades).

Popular TICK Chart intervals are derived from Fibonacci numbers such as:

89 / 144 / 233 / 377 / 610 / 987 / 1597 TICK Chart.

RANGE Bar Charts reflect Price Action over a given amount of volatility.

Each Range Bar (whether it be a vertical bar or candlestick) represents a

specified movement of price.

For example, a 1.00 ES Point (4 Ticks) Range Bar Chart.

Trading Styles

What Type of Trader Are You?

BREAKOUT Trading:

RETRACEMENT Trading:

HIGH

LOW SELL Stop

HIGH

LOW

BUY Stop

Trading Styles

HIGH

LOW SELL

SELL

NL

NL

HIGH

LOW

BUY

NH

NH

BUY

Are you a TREND Trader or a COUNTER-TREND Trader?

Catching just a little piece and/or a much larger piece of the TREND adds up and is

easier to do with a high probability of success.

A minimum of 80% of your trades should be those trading with the TREND.

The remaining 20% or so may constitute COUNTER-TREND (CT) Trades.

You will find trading not only less stressful, but also much more rewarding and

profitable if you simply stick with concentrating more on TREND Trades as opposed

to trying to pick tops and bottoms (CT Trades).

Of the 20% of COUNTER-TREND (CT) Trades, 80% of those CT Trades should be

BUYS (LONG Entries). Why?

BOTTOMS are much easier to pick than TOPS.

Most traders have a bias towards buying the market rather than selling the market.

Most futures traders buy the market in anticipation of higher prices.

BOTTOMS are put in place much more quickly than tops (market TOPS are put in place

generally more slowly and take longer to form).

Trading Styles

What Time Frames Fit You?

There are basically three (3) broader categories of time frames in which to trade off

of according to the average length of trades you want to do:

1) Longer-Term Time Frame Charts: Weekly and Daily Charts for wealth building

and capturing major trends in the futures market in longer term accounts.

2) Intermediate-Term Time Frame Charts: Daily and 240 Minute Charts used

mostly by Swing Traders to capture short-term swings in an ongoing trend while

side stepping the brief counter-trend moves.

3) Short-Term Time Frame Charts: Intraday 60 Minute, 30 Minute, and 3 Minute

Charts used for income producing and daily cash flow.

Trading Styles

Types of Orders

The E-Minis (ES, YM, and NQ) are traded electronically on the Chicago Mercantile

Exchange’s (CME) Globex trading platform. This provides traders with electronic

access to the equity index marketplace virtually 24 hours a day from almost anywhere

in the world. Anyone who has an account with a Futures Commission Merchant

(FCM) or Introducing Broker (IB) can trade on the platform.

Types of Trading Orders

MARKET (Entry) Order

LIMIT Orders

STOP Orders

MARKET IF TOUCHED (MIT) Orders

Types Of Orders

& Placing

Orders

Types of Orders and Placing Orders

Entering

LONG on a

BREAKOUT

Entering

SHORT on a

BREAKDOWN

Types Of Orders

& Placing

Orders

Current

Market Price

1314.50

BUY STOP

1317.00

Current

Market Price

1314.50

SELL STOP

1312.25

Types of Orders and Placing Orders

Entering

LONG in an

UPTREND

on a PULLBACK

Entering

SHORT in a

DOWNTREND

on a PULLBACK

Types Of Orders

& Placing

Orders

Current

Market Price

1314.50

BUY LIMIT

1313.25

Current

Market Price

1314.50

SELL LIMIT

1316.75

11 Steps in Developing a Successful “Trading BUSINESS PLAN”

Every successful trader MUST have a written “Trading Business Plan” in order to

keep disciplined and focused. The following 11 Steps need to be incorporated in

developing a successful “Trading Business Plan”:

1) You must have a Mission Statement.

2) You must spell out your trading/investing Goals and Objectives.

3) You must spell out your Trading/Investing Beliefs and Market Beliefs.

4) Spell out your exact Trading Strategies.

5) What are your Position Sizing Strategies?

6) What are your typical Psychological Problems in following your trading plan?

7) What are your Daily Trading Procedures?

8) Do you have an Education Plan to Help Improve Yourself on a continuing basis?

9) What is your Disaster Plan?

10) What is your Planned Income and Budget for Trading Expenses?

11) How do you Prevent Trading Mistakes and Avoid Repeating Them if they occur?

Trader Business

Plan

Money Management

Money Management includes consideration of the following factors in addressing the

question of how best to use the capital available to you in the most effective manner

so as to MAXIMIZE your PROFITABILITY while at the same time PROTECT your

CAPITAL by MINIMIZING the RISK of ruin.

Deciding on the OPTIMUM amount of money to commit to any one trade.

PROTECTING your PROFITS from erosion.

Avoiding (at all costs) turning a small losing trade into a huge losing trade.

Knowing when and how to increase the size of your cash commitment.

Recognizing the importance of taking some of your winnings off the table.

Always Know Your Exit Before You Enter. One of the cardinal rules of good trading is

ALWAYS to have an EXIT point before you even enter a trade. If you know your initial risk, you

can express all your results in terms of your initial risk.

Trade Sizing

Most traders, as well as many top professional traders, do not realize the most

important, non-psychological component of trading/investing success, Trade Sizing!

A Trade Sizing Strategy helps you determine:

How much equity to risk on every trade you take.

How much equity to risk given several inputs.

Money

Management &

Trade Sizing

Three Components of Trade Sizing Money

Management &

Trade Sizing

Trader’s

Objectives

Trade

Sizing

Method

Trader’s

Psychology

Trader’s Objectives:

What are your personal

trading objectives?

Trader’s Psychology:

What are your beliefs about

your trading?

What emotions come up

when you’re trading?

What’s your mental state?

Trade Sizing Method:

What is your criteria for or method of trade sizing?

Trade Sizing Model

A simple model for determining HOW MANY POSITIONS involves risking a

percentage of your equity on every trade. You need to know three distinct variables:

The CPR Model for Position Sizing

1. How much of your equity are you going to risk? This is your total risk, but we will call it

CASH (or C) for short. This will be the C in our CPR formula. For example, if you were

going to risk 2% of your equity, C would be 2% of your equity. If you have a $25,000

account, C would be 2% of that, or $500.

2. How many units do you buy/sell (that is, what is your position sizing method)? We call

this variable (P) for POSITION SIZING method. Which futures contract are you trading

and how many contracts do you buy/sell?

3. How much are you going to risk per unit that you trade? We will call this variable (R),

which stands for RISK. For example, if you’re going to buy the E-mini S&P 500 at

1239.50 and your risk is 3.00 Points or 12 Ticks (1236.50), then your risk R in this

particular trade is $150. We will use this in our CPR Formula below.

Use the following formula to determine how many contracts to trade:

P = C / R

(P) Position sizing = (C) total Cash at risk / (R) Risk (# of ticks * value of a tick)

Money

Management &

Trade Sizing

Trade Sizing Model Example (P = C / R)

Let’s say, for example, with a $25,000 account balance:

You’re willing to risk 2% of your account balance ($25,000 x .02 = $500), or C = $500.

You BUY the E-Mini S&P 500 at 1239.50 with a risk of 3.00 ES index points, AND your

broker charges a commission of $5.00 round turn per contract, or R = $155 (3.00 ES index

points x $50 + $5.00). IF P = $500 / $155, THEN you can trade up to 3 E-Mini S&P 500

futures contracts.

You BUY the E-Mini NASDAQ-100 at 2294.25 with a risk of 5.00 NQ index points, AND

your broker charges a commission of $5.00 round turn per contract, or R = $105 (5.00 NQ

index points x $20 + $5.00). IF P = $500 / $105, THEN you can trade up to 4 E-Mini

NASDAQ-100 futures contracts.

You BUY the E-Mini Dow at 12026 with a risk of 25 YM index points, AND your broker

charges a commission of $5.00 round turn per contract, or R = $130 (25 YM index points x

$5 + $5.00). IF P = $500 / $130, THEN you can trade up to 3 E-Mini Dow futures

contracts.

You BUY the Russell 2000 Index Mini at 725.5 with a risk of 1.7 TF index points, AND your

broker charges a commission of $5.00 round turn per contract, or R = $175 (1.7 TF Index

Points x $10 + $5.00). IF P = $500 / $175, THEN you can trade up to 2 Russell 2000 Index

Mini futures contracts.

Money

Management &

Trade Sizing

Money

Management &

Trade Sizing

E-Mini S&P 500 (ES)

*Calculations based on $5.00 round turn per contract broker commission

1.00 Point = $50 or 1 Tick = $12.50 Profit/Loss

$7,500 Account (Risk = 2.25 ES points)

2% of $7,500 = $150 max loss: IF $112.50 Risk x 1 = $112.50 + $5* = $117.50

AND P = $150 / $117.50 (per contract), THEN

trade ONLY 1 ES contract!

$15,000 Account (Risk = 2.25 ES points)

2% of $15,000 = $300 max loss: IF $112.50 Risk x 1 = $112.50 + $5* = $117.50

AND P = $300 / $117.50 (per contract), THEN

trade up to 2 ES contracts!

$30,000 Account (Risk = 2.25 ES points)

2% of $30,000 = $600 max loss: IF $112.50 Risk x 1 = $112.50 + $5* = $117.50

AND P = $600 / $117.50 (per contract), THEN

trade up to 5 ES contracts!

$10,000 Account (Risk = 2.50 ES points)

2% of $10,000 = $200 max loss: IF $125 Risk x 1 = $125 + $5* = $130

AND P = $200 / $130 (per contract), THEN

trade ONLY 1 ES contract!

$25,000 Account (Risk = 2.50 ES points)

2% of $25,000 = $500 max loss: IF $125 Risk x 1 = $125 + $5* = $130

AND P = $500 / $130 (per contract), THEN

trade up to 3 ES contracts!

$50,000 Account (Risk = 2.50 ES points)

2% of $50,000 = $1000 max loss: IF $125 Risk x 1 = $125 + $5* = $130

AND P = $1000 / $130 (per contract), THEN

trade up to 7 ES contracts!

Money

Management &

Trade Sizing

Current Charts

Coaching Session TWO

Trading Plan

Execution

Program

Summary

Counter-Trend

Trade Set-Ups

Trade

Management

Initial Trend

Entry

Floor Trader

Pivots

Fibonacci

Retracements

Trader Business

Plan

Traits &

Survival Skills

Successive

Trend Entries

Starting The

Trading Day

Trading Tips &

Market Insights

Powerful Price

Pattern Trades

Powerful Price

Patterns Volume Analysis

Key

Times Of Day

Keltner Bands &

Key Moving

Averages

NYSE Tick Market Flow

Analysis Method

Types Of Orders

& Placing

Orders

Market

Foundation &

Building Blocks

Money

Management &

Trade Sizing

Trading Styles

What Are The

E-Mini Futures

Steps Of A

Successful

Trader

Trading

Thoughts &

Beliefs

Trading

Psychology

The Master Trader™

Income Generating Strategies™

Trading Success Principles™

Trading Essentials Framework™