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As a trading educator, one of the most disappointing trends is to see a novice e-mini trader begin his or her e-mini trading career on a very strong note and then watch them deteriorate at the 2 to 3 month mark. It's not an unusual phenomenon, and I have almost come to expect this event and started to act proactively early to prevent it from ruining a budding e-mini trader’s career. Early on in my training career, I had a very difficult time recognizing the root cause of the drop off in new trader’s results. It was as if things would be going along fine and out of the blue, a new e-mini trader would simply drop off the map and fold. Why does this happen? I would also like to make it clear that not all new e-mini traders go through the two-month doldrums, but it became apparent to me that a significant number of new traders hit a wall at the 2 to 3 months mark. After watching this happen over and over and documenting the steady decline I observed in these traders, I began to understand the thought process these traders were undergoing and started taking steps to remediate their e-mini trading decline. While I am not a psychologist (I am a trader) I noticed the following conditions occurring at the 2 to 3 month time period: New traders are very impressionable, and early training lessons are often followed to the letter. Traders tend to listen and assimilate information without question at the beginning of their careers. The illogical nature of the market does not faze them and they tend to take setups exactly as described and lay off enticing set up traps without question. At some point in a new trader’s career he or she is forced to understand the market on his or her own terms. As individuals, we tend to try to make sense of the activities in which we participate. Further, we tend to try to logically categorize our activities in a logical manner. Of course, trying to apply every day common sense into the bewildering machinations of the futures market and can be frustrating. Further, the market often times it is far from logical. It often defies any sort of rationality. As new e-mini traders move away from the intensive initial training there is a tendency to try to develop your own style as a trader, which only makes sense. The problem is simple though, at two months most new e-mini traders do not have the experience to set up an illogical framework that will work in the e-mini market place. In a perfect world, things ought to work in a logical manner. I learned that an intensive re-explanation of the initial concepts taught in my course were of great value to these struggling e-mini traders. It was as if they had forgotten the early lessons I teach on randomness and replaced them with self-taught lessons that were dependent upon common sense. Randomness and the e-mini market is one of the most difficult concepts to explain and for new traders to retain. A market that sometimes runs helter-skelter does not always jibe with our belief that the market is a highly organized and the efficient mechanism. It is neither. In summary, taking time with all my students at the 2 to 3 months period and reemphasizing the random nature of the market and the techniques that we, as e-mini traders, must utilize to compensate for market randomness has become a standard in my training. Instead of waiting for the 2 to 3 month break down, I try to proactively avert this problem by reemphasizing the initial lessons I teach on randomness and reinforcing their importance. Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.
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e-mini traders, e-mini trading, e-mini market, novice traders,
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