E-Mini Trading: Let's Start at the Beginning With No Hype

 It's not uncommon for me to browse well-known (and some lesser-known) e-commerce education sites and see what's being advertised and how it's being advertised. I am often afraid of the promises and guarantees made on these sites. On the other hand, there are a handful of aspiring educators who appear honest and realistic in how they present mini-e-commerce. However, many websites promote e-mini trading as something akin to the California Gold Rush. It's not uncommon for e-commerce to be touted as a get-rich-quick scheme; with minimal effort.

As a reminder, e-mini trading is not a get-rich-quick system and it takes a lot of effort and time to become proficient and profitable. Even if someone thinks they can read an e-book or two and then conquer the markets, they are hopelessly mistaken. In this article, I want to give an accurate picture of what “electronic mini-commerce” is. and what e-mini commerce "isn't". For some, my description of the path to e-commerce success can be daunting and disappointing. That suits me because any potential new trader should have a clear idea of ​​what highly competitive field 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 scheme; Profession. The hard truth is that most people who start a career in trading end up losing some or all of their money. There are very few "natural" people; merchants. The vast majority of new marketers will find many e-commerce concepts unnatural and confusing. It takes time and experience to become a consistently profitable e-mini dealer indicator download.

Most trading books or manuals have a specific system that the new trader should study. The systemic approach to trading is fraught with pitfalls. These systems can work very well in certain market conditions, but the market is a product of many sentiments and very few systems work well in all market situations. The vast majority of e-mini mechanical trading systems fail miserably in markets that are not trending or consolidating. The most profitable traders are extremely disciplined in their approach to the market and have developed their trading style and discipline through years of study and experience. A common thing I see on many trading sites is a quote that suggests you should be able to double your account value every month.

Some sites even suggest that you can earn more than double your account value monthly. It's not uncommon for titles on these sites to claim returns of 300% to infinity. It is very unlikely that you will double your account every month. I'm unlikely to double my account every month. Sure, I've had a stellar few months in my trading career, but the idea of ​​consistently doubling my account every month is ridiculous. Done: You have the potential to break even within the first few months of your e-commerce career. Also, most new traders lose significant amounts of money early in their trading careers. Statistics suggest that 50% of all new traders lose their entire trading account balance. Many websites claim to have discovered a revolutionary new approach to trading that practically guarantees profits. While the trading methodology has evolved rapidly in recent years, I am not aware of any revolutionary new trading approach that would ensure that a new trader can start a highly profitable trading career from day one of their trading experience.

Sure, returns for traders and investors have remained fairly constant over the past 20 years, despite billions of dollars of ongoing market research by major institutional trading organizations. In short, most of the new "breakthrough" techniques recycle current oscillator versions of old trading techniques. Fact: Profitable trading is still the domain of highly skilled and experienced traders. I don't know of any revolutionary new trading technique that has significantly improved the trading success rate, including the newest wrinkle in trade marketing - the trading robot. Automated transactions on Wall Street are typically performed by computers on the "Cray Supercomputer"; Computer Science Lessons.It takes very little analytical skill to figure out that a trading bot with a retail price of $279 will fill your pocket with hundreds of thousands of dollars.

Trading robots are just another example of “next best” innovation. The algorithms that I have been able to analyze on various trading robots are based on simple moving averages and well-known oscillators. This can hardly be described as a revolutionary new approach. They're fairly profitable for the people who sell these machines, but empirical evidence has shown that they generally perform poorly. Finally, many of the trading courses offered are limited to a rigorous systems approach to trading. I will spare the reader a lengthy discussion of the disadvantages of systems-based trading, but I will point out that systems-based trading is generally successful in trending markets. Depending on which source you choose to cite, the market typically moves 30-40% of the time. In times of consolidation, commonly referred to as tightly constrained trading, systems-based trading often encounters serious problems. Also, the markets often go through very random trading periods and system-based trading is not suitable for this type of trading.

In short, most trading-based systems work well under well-defined conditions. I would also like to point out that few traders need a special trading system to trade trending markets, as these are the markets where most trading profits are made and they are relatively easy to spot and profit from. Fact: In my experience, successful and consistent traders learn to read and interpret charts rather than confining their learning experience to the rigid trading parameters of the system. This is not a general indictment of systems-based trading, but rather a generalization of my experiences with systems-based trading. The most profitable traders have mastered a variety of market conditions and understand the trading style required to trade effectively in those market conditions.

Additionally, learning to trade in a variety of trading conditions is usually achieved through experience gained from trading with another experienced and profitable trader or through a mentoring program with a skilled and experienced trader. In conclusion, I have tried to point out that the trading programs offered may not be a good choice for new investors. In particular, I caution against using trading systems that offer inflated win rates. Finally, I encourage all traders to find an experienced trader to befriend or hire an experienced trader through a mentorship program. I'm sure there are trading courses out there that cover some of the shortcomings we've outlined in this article, but we haven't been able to locate such a program yet.I encourage new traders to think carefully about some of the above, as trading education is often an expensive endeavor, but given the right conditions, most people can learn to trade profitably and consistently.