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E-Mini Trading: Let’s Start at the beginning With no Hype

E-Mini Trading: Let’s Start at the beginning With no Hype

It’s not unusual for me to peruse prominent (and some not so prominent) e-mini trading education sites and see what’s being promoted and how it’s being promoted. Often times, I find the promises and guarantees espoused on these sites appalling tradingview. On the other hand, quite a handful of training educators who seem honest and realistic in the manner in which they express e-mini trading. That being said, many of the sites promote e-mini trading as something akin to the California gold rush. It is not uncommon to see e-mini trading portrayed as an approach to “get rich quick” with a minimal amount of effort.

For the record: E-mini trading is not a get rich quick scheme and takes a considerable amount of effort and time to become proficient and profitable. Further, if an individual believes they will read an e-book or two and then slay the markets they are hopelessly incorrectly recognized. In this article, I would like to present an accurate portrayal of what e-mini trading “is, ” and what e-mini trading “is not. ” Some may find my description of the path to e-mini trading success daunting and be terribly disappointed. That’s okay with me because every potential new worker should have a clear idea of this high competition arena they are considering for a career.

Let’s start with a clear idea of what e-mini trading is not:

E-mini trading is not a “get rich quick” profession. The stark truth is that the majority of people who embark on a career in trading lose some or all of their money.

There are very few individuals who are “natural” traders. The vast majority of new traders will find many of the concepts in e-mini trading out of place and confusing. It takes time and experience to become a consistently profitable e-mini worker.

Most trading books or manuals present a specific system for a new worker to study. The system approach to trading is fraught with danger. These systems may work very well under certain market conditions, but the market is a creature of many moods and also few systems work efficiently in all market situations. The vast majority of mechanical e-mini trading systems fail miserably in non-trending or consolidating markets.

Most consistently profitable traders are highly encouraged in their approach to the market and have developed their trading style and discipline through years of study and experience.

One common characteristic I see on many trading sites is a quote that suggests that you should be able to double your account value on a monthly basis. Some sites even suggest that you may possibly earn even more than double your account value on a monthly basis. It’s not unusual to see days news on these sites claim returns ranging from 300% to infinity.

It is highly improbable that you are going to double your account on a monthly basis. It’s improbable that I am about to double my account on a monthly basis. Granted, I have had some exceptional months in my trading career, but the notion i always can consistently double my account each month is preposterous.

Fact: In the first several months of your e-mini trading career you will be lucky to break even. Even more to the point, most new traders lose considerable sums of money during the early stages of their trading career. The statistics suggest that 50% of all new traders lose their entire trading account balance.

Fact: Profitable trading still lies in the domain of highly skilled and experienced traders. I am unaware of any revolutionary new trading techniques that have dramatically improved the rate of success in trading, including the most recent wrinkle in trading marketing: the trading robot. The automated trading on Wall Street is generally performed by computers in the “Cray Supercomputer” class of computer. It takes very little analytical skill to reason that a trading robot that retails for $279 will fill your pockets with hundreds of thousands of dollars. Trading robots are just another example of the “next best” innovation. The algorithms that I have been able to analyze on several trading robots rely upon simple moving averages and well-known oscillators. This is hardly the stuff of any new revolutionary approach. They are quite profitable for the individuals who are selling these machines, but the empirical evidence has shown that they typically performed effortlessly.

Finally, many of the trading courses offered confine themselves to a strict systems approach to trading. I will spare the reader an extended discussion on the mistakes of systems-based trading, but will comment that systems-based trading is generally effective during trending markets. Further, based on which source you care to quote, the market typically trends 30% to 40% of the time. During loan combination periods, commonly referred to as range bound trading, systems based trading often struggles mightily. Further, markets often undergo periods of very random trading and systems-based trading is effortlessly suited for this type of trading. In short, most system-based trading approaches work efficiently under well-defined conditions. I would also point out that few traders require any special trading system to trade a trending market, as these markets are where the majority of trading profits occur and are simple to spot and from which to profit.

Fact: It is my experience that successful and consistent traders learn to read and understand arrangements, as opposed to confine their learning experience to the tight factors of system trading. This is not a blanket indictment of all systems-based trading, but a generalization from my experience with systems based trading. Most profitable traders are proficient in a wide range of market conditions and to understand the trading style required to trade those market conditions ease efficiently. Further, finding out trade in a wide variety of trading conditions is generally accomplished through the experience gained by trading with another experienced and profitable worker, or from a mentorship program with a qualified and experience worker.

It’s not unusual for me to peruse prominent (and some not so prominent) e-mini trading education sites and see what’s being promoted and how it’s being promoted. Often times, I find the promises and guarantees espoused on these sites appalling. On the other hand, quite a handful of training educators who seem honest and realistic in the manner in which they express e-mini trading. That being said, many of the sites promote e-mini trading as something akin to the California gold rush. It is not uncommon to see e-mini trading portrayed as an approach to “get rich quick” with a minimal amount of effort.

For the record: E-mini trading is not a get rich quick scheme and takes a considerable amount of effort and time to become proficient and profitable. Further, if an individual believes they will read an e-book or two and then slay the markets they are hopelessly incorrectly recognized. In this article, I would like to present an accurate portrayal of what e-mini trading “is, ” and what e-mini trading “is not. ” Some may find my description of the path to e-mini trading success daunting and be terribly disappointed. That’s okay with me because every potential new worker should have a clear idea of this high competition arena they are considering for a career.

Let’s start with a clear idea of what e-mini trading is not:

E-mini trading is not a “get rich quick” profession. The stark truth is that the majority of people who embark on a career in trading lose some or all of their money.

There are very few individuals who are “natural” traders. The vast majority of new traders will find many of the concepts in e-mini trading out of place and confusing. It takes time and experience to become a consistently profitable e-mini worker.

Most trading books or manuals present a specific system for a new worker to study. The system approach to trading is fraught with danger. These systems may work very well under certain market conditions, but the market is a creature of many moods and also few systems work efficiently in all market situations. The vast majority of mechanical e-mini trading systems fail miserably in non-trending or consolidating markets.

Most consistently profitable traders are highly encouraged in their approach to the market and have developed their trading style and discipline through years of study and experience.

One common characteristic I see on many trading sites is a quote that suggests that you should be able to double your account value on a monthly basis. Some sites even suggest that you may possibly earn even more than double your account value on a monthly basis. It’s not unusual to see days news on these sites claim returns ranging from 300% to infinity.

It is highly improbable that you are going to double your account on a monthly basis. It’s improbable that I am about to double my account on a monthly basis. Granted, I have had some exceptional months in my trading career, but the notion i always can consistently double my account each month is preposterous.

Fact: In the first several months of your e-mini trading career you will be lucky to break even. Even more to the point, most new traders lose considerable sums of money during the early stages of their trading career. The statistics suggest that 50% of all new traders lose their entire trading account balance.

Fact: Profitable trading still lies in the domain of highly skilled and experienced traders. I am unaware of any revolutionary new trading techniques that have dramatically improved the rate of success in trading, including the most recent wrinkle in trading marketing: the trading robot. The automated trading on Wall Street is generally performed by computers in the “Cray Supercomputer” class of computer. It takes very little analytical skill to reason that a trading robot that retails for $279 will fill your pockets with hundreds of thousands of dollars. Trading robots are just another example of the “next best” innovation. The algorithms that I have been able to analyze on several trading robots rely upon simple moving averages and well-known oscillators. This is hardly the stuff of any new revolutionary approach. They are quite profitable for the individuals who are selling these machines, but the empirical evidence has shown that they typically performed effortlessly.

Finally, many of the trading courses offered confine themselves to a strict systems approach to trading. I will spare the reader an extended discussion on the mistakes of systems-based trading, but will comment that systems-based trading is generally effective during trending markets. Further, based on which source you care to quote, the market typically trends 30% to 40% of the time. During loan combination periods, commonly referred to as range bound trading, systems based trading often struggles mightily. Further, markets often undergo periods of very random trading and systems-based trading is effortlessly suited for this type of trading. In short, most system-based trading approaches work efficiently under well-defined conditions. I would also point out that few traders require any special trading system to trade a trending market, as these markets are where the majority of trading profits occur and are simple to spot and from which to profit.

Fact: It is my experience that successful and consistent traders learn to read and understand arrangements, as opposed to confine their learning experience to the tight factors of system trading. This is not a blanket indictment of all systems-based trading, but a generalization from my experience with systems based trading. Most profitable traders are proficient in a wide range of market conditions and to understand the trading style required to trade those market conditions ease efficiently. Further, finding out trade in a wide variety of trading conditions is generally accomplished through the experience gained by trading with another experienced and profitable worker, or from a mentorship program with a qualified and experience worker.

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