You said it. Also, there is contradiction between the first and the second and third sentence. Big one. I have yet to see a 'mentor' who actually knows what he's blabbing about. And if you found one, great, but realize that its a one in a million chance you'll find such a person... So as an advice, this is not so hot. My advice: decide on the onset if you want to do this full time, or part time. If part time, then stick to picking stocks that will go up in several months' time, ie. invest, and forget trading. If full time, capitalize yourself adequately and trade minuscule and hope to last to figure stuff out on your own.
Trading the S&P 500 Emini ES Futures * The markets are more globally interconnected than ever before and most newbies or losing traders have problems understanding that fact. Therefore, to trade the S&P 500 Emin ES futures you really need to understand what's going on in other key markets and scheduled market events while trading Emini ES. * As noted by wiesman02, it's not that setups don't work any more...the signals just don't appear as much when comparing 2009 to prior years of trading. However, that could be a strategy specific statement. For example, I use a volatility base method and I had more trade opportunities in prior years in comparison to 2009 (a year of low volatility). Thus, wiesman02 could be like me and is using a method that's sensitive to volatility. * The best pro traders in the Emini ES are the (banks, institutions, hedge funds and so on) sitting in some office with other pros that trade other key trading instruments (oil, gold, treasuries, currencies, derivatives et cetera). If you're lucky enough to visit some of these offices in the middle of trading...it's an eye opener. * The best retail traders (guys and gals trading from a home office) in the Emini ES are former pro traders or traders with strong collaboration with pro traders. * The few retail traders doing good on their own after +5 years of trading with no connection to the above...they have a ton of market experience as in many years along with deep pockets (lots of capital). Those retail traders that are successful with only a few months or few years under their belts are finding it scary to trade so far in 2009...it's tough especially with all the high frequency trading (sometimes called HFTs) going on by the big boys creating what looks like price noise to the retail folks especially during auctioning or expirations in other key markets. * All that chop or price noise we see so far in 2009...as retail traders, we better get off our lazy butts and watch those other key markets to see the hidden clues in the chop or price noise of the Emini ES. Simply, if you're concentrating only on the Emini ES exclusively and not monitoring other key markets out the corner of your eye...you're at a huge disadvantage as a retail trader. That's an advantage the pros have...their buddies tells (sometimes yells) what's going on before us retail folks get wind of it...often too late for most retail folks while others with an edge are fighting over the scraps like vultures. * Emini ES will quickly expose any trader with a weak mental game. Thus, as wiesman02 said, keep your other jobs because psychology of trading is an a$$hole. * Just because you're profitable doesn't imply you can make a living at trading the S&P 500 Emini ES futures. To make a living at trading this monster you better know a thing or two about how to run a business like any other small business owner. Mentoring...It's A Two Way Street http://www.elitetrader.com/vb/showthread.php?s=&threadid=32793&perpage=1&pagenumber=7 http://www.elitetrader.com/vb/showthread.php?s=&threadid=66973&perpage=1&pagenumber=3 If a trader doesn't get mentored in person via the mentor trading with real money in front of the trader own two eyes and with the mentor coaching the trader through the trader's real money trades...it's not mentoring. Simply, all that hindsight, weekend, after the close chat room or online help should be used as follow-up only to in person mentoring. The best traders in the world learned it from others via in person along with screen time...usually in an office atmoshpere. However, most of them wouldn't use the word mentored. Instead, they called it on the job training and it was often mandatory by the boss. Here's the problem, us retail traders (guys and gals that trade from home) are trying to duplicate that on the job training with ourselves only or with an online mentor while trading the Emini ES that has its price action moved by the professionals (banks, hedge funds, institutions et cetera). In addition, most online mentors are at a huge disadvantage in trying to help the typical retail trader because the mentor doesn't really know what baggage the trader has on the other side of the screen and vice versa. In contrast, it's tough to mask (hide) that crap during in person mentoring. Summary, like wiesman02 said, as a newbie trader or losing trader...don't try to rely on it as your sole source of income without a qualified mentored (read the info at the links above) in place because to trade the S&P 500 Emini ES futures... You're trading against professionals with deep pockets that's surrounded by other traders that trade other key markets...all of them helping each other (team collaboration). Therefore, to do this full-time as noted by orange_trad, you better be well capitalized. I would add that to survive the first few years of full-time trading the Emini ES you better have a strong understanding that the best traders out there are well capitalized and collaborate with others that are well capitalized...they need newbies or inexperience pros to be on the other side of their trades. Mark
Windmills of the mind, it's hard not to see patterns when we are evolutionary developed for it. Too bad it's often illusory when it comes to TA.
If one just looks at a pattern without seeing HOW the patterned developed, then yes. Otherwise a resounding, NO
Trading full time is tough. I am trading/struggling full time right now and I only consider what I am doing a learning experience. Finding a mentor who is truly profitable is near impossible due to the business nature of this industry. If you do found one, you can never afford his/her mentorship. One thing a newbie full time trader could do is read ET archive. Then test out some of the theories and assumptions. Also, read trading books--the popular ones. Read them again from time to time to discover new things that you might not be able to see before when you first read it. As well, keep a trading log. PA
Screen time. Screen time. Screen time. Two years. That's what it took me. The only reason I survived the two years is because I had another way to make a living and was never dependent on trading profits to pay my bills. Since this is for newbies, I'll say it again. Two years. Have a way to pay your bills while you're paying your dues. It's unlikely that you'll do anything but lose money while you learn. As for mentoring, I've tried to teach two people (one close friend and one family member). Both quit after about four months of frustration. Psychology got the better of both of them.
Can I just ask the OP one question (and note that I don't mean to offend)? You address your post to 'Newbies', implying you're not one of them. Given that you have been trading for less than 2 years, what would you call yourself?
The best route is to ensure capital preservation and then if your edge is decent and tested (back, forward, sim traded, etc) profits will eventually follow. If you want to trade for the sole reason of quitting your job tommorow then forget it. Trading is a life journey.
this in no way or form dilutes their success.. first of all very few pweopel would have the funds to really cream a hedge funds strategy, but a hedge fund trader would not waste his time training or mentoring you without somethign back in return..i.e. money or percentage of profits later. The point is that most people could never afford or ever run into s huge trader willing to do this becasue it takes time energy and also what if the mentor sees his subject fail! Try finding a poker mentor and learn his money management skills.. when he dbles up how much he bets and when.. this is solid solid info that almost never gets mentioned on this site!!! lol.. traders on this site say never add to a loser.. B.S. I used to use stops... now id on't use stops and my intra day trading is leaps and boounds ahead of where it was years ago.