What Is the Most Effective Way to Learn to Trade E-Mini’s?

This is a question that I am frequently asked in the course of daily business. The term “effective” is the most important part of this question. There are many ways to learn to trade, but some are time-consuming and very ineffective. On the other hand, the term “effective” may refer to which method is most cost-effective. We will take a look at several ways to learn to trade e-mini contracts and you can form your own conclusions from the evidence I present.

You can teach yourself how to trade e-mini contracts. You really can; but this method is very time-consuming and you will spend a good deal of time reading popular texts, then practice trading on the simulated account so that you can learn all the nuances of trading. Many brokerage firms will be happy to supply you with the demo account to practice what you have learned in your research and reading.

That sounds good, why wouldn’t everyone teach themselves how to trade?

Aside from the costs of the textbooks, should you decide to purchase them, this method would seem to be the most cost-effective. Of course, you will have to consider the opportunity costs of teaching in yourself to trade e-mini contracts. You are liable to spend a year or so reading about how markets function and trade, usually at the very theoretical level. This means that you, as a novice trader, will have to spend a good deal of time with a demo account and develop your unique style of trading. In short, the “teach yourself” method of learning to trade is some slow going; it may be several years before you are able to become consistently profitable on the simulated account. Once you are consistently profitable on an e-mini simulator, you are ready to trade the e-mini markets with real money. 선물옵션

Another method to trade would be to join the e-mini trading room. Incidentally, I consider this method the worst of the bunch because you will be tethered to the trading room for a good deal of your career. There are e-mini trading rooms, and some are very good, that is simply call out trades as they arise and you, as a novice trader, can choose to take the trade that was called. If you are particularly perceptive you may be able to figure out the system the trading room uses and strike out on your own using the system you have patched together from the e-mini trading room. On the other hand, if you don’t figure out of the system, you will end up spending your days eagerly waiting for each new call the elite trader in the trading room calls out; in short, you will be joined at the hip with the trading room in order to be consistently profitable.

Finally, you may hire an experienced trader to teach you to trade the e-mini’s. The selection process for choosing a mentor can be expensive and very tedious because the quality of e-mini trading instructors varies widely. There are some very good traders out there who can teach you a sound trading methodology that will serve you well. On the other hand, there is a high percentage of trading instructors who have taught themselves to trade and offer their services as such. This category of traders often teaches some nonconventional methods to trade, to say the least, and some are downright incompetent. You will have to evaluate each program to decide which program is legitimate and will meet your learning needs. As an aside, when researching potential trading mentors, make sure you ask for a list of referrals and an audited accounting of their cumulative trading record. The backup documents like the brokerage statements to substantiate their claims are also a good idea. You want to make sure that your instructor can actually trade consistently profitable.

Leave a Reply

Your email address will not be published. Required fields are marked *