In recent years, I have noticed a distinct change in the way that traders are approaching a career in e-mini trading. I want to make it clear from the onset that this article contains observations that I have made and are in no way reflective of any sort of scientific research. My observations are strictly trends that have affected my personal e-mini training experiences; that being said, these observations are similar to what other trading room operators have shared with me. Fact? Fiction? You can be the judge.
Following the credit crisis in 2007-2008, there seemed to be a pressing need for many traders to focus on being able to trade independently and without any 3rd party help. As a rough estimate, I believe there were about 50 trading rooms when I started in the e-mini education field and at last count, we were approaching nearly 700 rooms for aspiring traders to choose from. By any measure, that is an exponential leap in popularity. I'm not so sure that there are more traders in the market, but there is a distinct emphasis on self-sufficiency in trading so that individuals could interpret market moves on their own training.
Trading rooms are far more sophisticated than they had been in the number of services that these modern rooms offer; good rooms are far more comprehensive than early forays into e-mini rooms. Unfortunately, the exponential growth in trading rooms has brought a number of unsavory characters into the business and trading forums are loaded with trading room experiences that were sub-par or worse. It has now become very important to make a thorough analysis of a room before diving into the fray.
In my opinion, I would consider the following factors when choosing a potential trading home (i.e.-a trading room that is intellectually satisfying and the emotionally gratifying) here are some factors that I would take into consideration in your search for a well-rounded room:
· How long has the trading room been in business?
· Does the lead futures trader trade a style that is a good fit for your personal trading style?
· Are the trading calls in the room made early enough so that you can duplicate the trades?
· Can the trading room operator produce a verifiable track record that would include irrefutable documentation of his/her trades; for example, redacted brokerage statements, third-party verification of your trading, videos of each trading session that include all trades reported to potential clients, or any other method that is not easily manipulated?
· What would the trading room operator's credentials look like?
There are currently several well-regarded e-mini trading review sites and these sites have zeroed in on one particular problem; most professional rooms are unable to produce verified trades to establish a track record of any length. Again, I would press any room operator to produce these types of materials as most reputable individuals in the trading business have begun meticulously documenting each session and each trade. I realize that documentation can often be manipulated, but honest operators should have no trouble producing some sort of verification that satisfies you. Stay away from rooms that promise fantastic returns, e-mini trading is not a get rich quick business and anyone who indicates otherwise is probably not a good choice.
In summary, before spending your hard-earned money on a room make sure that you do your homework regarding that room and are satisfied that the trader can make money and prove that he/she has made money in the past. As always, best of luck in your trading endeavors; this business should be fun and financially rewarding.