4 out of 4 stars
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Dennis B. Anderson shares his experience and expertise in his book, Trading E-Mini Stock Index Futures: A New Path to Wealth. First, the author states that trading futures is a high risk, high reward activity and should be done with money that you can afford to lose. The author suggests starting with at least $10,000 to $15,000 and to practice the strategies in a simulation before using real money. Anderson explains three models in detail that are high probability trades with limited risks. He desires to help traders be successful without any catch or moneymaking scheme.
Anderson describes some important technical indicators and candlestick patterns to use in trading three different models. He has simplified trading down to using mostly two exponential moving averages and two simple moving averages to show trends, a Stochastic Oscillator to show if the price is overbought or oversold, and candlesticks and patterns to show reversals. He also uses support and resistance to help with trading the sideways movements in prices to know when to enter or to exit a trade. He calculates market corrections for long-term trading in Model 3, and this method is advised to use only if the trader has a lot of money and little time to trade. Therefore, I like the Model 1 strategy the best, as it uses moving averages, a Stochastic Oscillator, and candlestick patterns for following trends. I also like the Model 2 – Index Bites, as well because the market spends 80% of its time in non-trending ranges, and it is a short-term trading strategy that can add up to good profits over time.
I was disappointed that the book did not have more pictures of actual trading charts to show the different indicators and examples of the different models he described. I believe it would help tremendously for most readers to have visuals when learning about trading. Therefore, I think this book would appeal more to traders who want to supplement their learning about trading futures and not for a new beginner.
On the other hand, there were good graphics of the different candlesticks and patterns, which were beneficial to the book. The book contains a glossary of words in the back to help with all the trading terminology, as well as a list of abbreviations in the front. I thought the e-mini future’s abbreviations were helpful. For example, the ES is the E-mini S & P 500 Stock Index, and the YM is the E-mini DOW 30 Stock Index. The author also included the value of each tick or point price for each of the five most common e-mini futures, which I found to be helpful. I also liked the quotes from various people that were used in the book. A famous quote from Warren Buffet is:
The book was extremely well edited. I actually only found one possible error of mentioning “support” when it should be “resistance” in explaining model one. I rate Trading E-Mini Stock index Futures 4 out of 4 stars not only for the way the author explained trading but also for the strategies he shared. The book is straightforward and clear. The author’s intentions to help people trade by themselves without relying on others and special indicators were met in this book. If you are interested in trading futures, this book is a good one to add to your reading list. There are benefits of trading futures!“Rule Number One: Never lose money. Rule Number Two: Never forget Rule Number One.”
Trading E-Mini Stock Index Futures
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