By David Adams
If you read the slew of trading websites and Internet advertisements you would think e-mini trading is similar to taking money out of an ATM machine. I wish it were that easy. To be a consistent trader an individual must master a number of disciplines in e-mini trading. Those disciplines are:
• Money management
• Trade management
• Chart reading
• Trading technique
These are the some of the rudimentary skills a beginning trader must learn, along with a plethora of lesser skills. I think it’s important for anybody considering the trading profession to think about the knowledge and hard work required to become successful. On the other hand, it certainly is a wonderful profession once you have learned to trade consistently.
But the question was, how long does it take to trade consistently and profitably? In my opinion, I would not count on the first year of your trading experience as being anything more than a time to learn. Unfortunately, common sense is not a real asset in the world of e-mini trading, as the markets are random and unpredictable at times. But there are underlying patterns to the markets random structure, and your ability to understand the markets machinations will and determine your success or failure.
So I have said it; you probably will not be a millionaire after your first year in the e-mini trading business. I also think it’s important to understand that individuals pick up trading concepts at varying speeds and assimilate those concepts that different levels. (which is a very nice way of saying that some people are smarter than others?) The rate at which each new trader learns will, more or less, determine the level of success and speed of success that individual enjoys.
Another variable to think about when considering learning to trade e-mini’s is the methodology you plan to employ. Are you going to learn through trial and error? This is the slowest and most costly method to learn to trade. Are you going to purchase a canned trading course? This is an improvement, but the failure rate is still very high. Are you going to hire a Mentor and learn trading skills? It seems to me this methodology is the most effective. Regardless of how you decide to learn to trade e-mini’s, it is still not an overnight process and you must prepare yourself for some setbacks and a steep learning curve. On the other hand, there are thousands of day traders who are successful, and you could easily be one of them.
In summary, we have noted that learning to trade e-mini’s profitably is not something that happens overnight. There are skills that we learned, and techniques to master. We have also stated that everyone has a different aptitude in trading; quite simply, some people are better than others at trading e-mini’s. Finally, the means you employ to learn to trade the e-mini’s will greatly affect your ability to trade profitably. Choose the wrong method, and you may struggle for many years. Good luck trading, is the greatest profession on earth.
Real Live Trading Doesn’t Lie. Spend several days in my trading room and see if you can benefit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here