The e-mini markets are full of depressing stories about traders who should have done this or could have done that. Failure is a key component of the free market system. You can’t have winners without losers. For those traders looking to learn from these horror stories of trading accounts gone bad, the mistakes to avoid are crystal clear. 99% of retail traders fail because they ignored three very basic principles.
When you know these reasons ahead of time you can prevent the same thing from happening to you. Being a successful trader means having the ability to take information on board and use that to your advantage. If you focus on correcting these issues before they strike you can hit the ground running on your way to becoming a profitable trader.
1. Lack of Capital
In today’s modern electronic market trading is getting more and more economical, however, it still takes money to make money. You can’t expect to make a full time living from trading off of a $5,000 account. Far too many novice traders take on too much risk and wipe their accounts out before they are able to pick up any real experience. Do yourself a favour and start small. Set aside enough capital to allow yourself time in the markets. Success is not going to happen overnight and you need to protect yourself and your future career by giving yourself enough time to develop your live trading skills.
2. No Clear Trading Strategy
No business would ever open its doors without first knowing what it was going to sell yet time and time again I see individuals open e-mini trading accounts without any knowledge of the trading strategy they are going to employ. Traders make money in this business by employing very specific strategies. A good trader will rely on one or two set ups to make consistent money. You need to know what your plan is before you start trading. This will save you from over trading and random trading.
3. Uneducated About Price Action and Market Behaviour
The vast majority of traders who fail do so because they didn’t understand how the markets operate or how to spot a good set up. You can save yourself an enormous amount of time and energy by seeking out experienced traders who will educate you on market behaviour. Don’t limit yourself to one individual. Get out there and find the trading coach or system that best fits your personality. Take the time to learn the pros and cons of each trader’s style and then incorporate the good into your own strategy.
E-mini trading isn’t an easy venture but if you set yourself up for success early on you can avoid a lot of the disappointment and frustration that is often experienced by traders new to the futures market.
For more information on how to become a profitable at e-mini trading, visit the #1 source for e-mini trading education.
Tags: commodities trading, day trading, e-mini trading, forex, futures trading, futures trading strategies, investment, stock market, trading