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Like most things in e-mini trading, there is a wide range of outcomes for traders who spend time in trading rooms. From the onset, I want to disclose that I own and trade in a popular room. But this article is about what you can expect from a room, both good and bad, and gauges your desire to utilize a room for your personal trading methodology. Some important features that rooms offer are: • You generally will get a room narrator who either talks your ear off, or simply posts entries and exits via text message. • While some room operators quantify their reasons for taking a position, others just call out a buy or sell order at a stated price. • You will probably hear lots about some proprietary software that is making the trading calls, and be encouraged to investigate its purchase. • You may encounter a room where the calls are accurate and the trade room operator explains his or her reasons for entering the trade, though even the most accommodating room operator may be reluctant to explain his or her entire methodology. It is my general opinion that traders who attempt to simply copy trades called by the room operator are marginally successful. There's a reason for this. If the individual does not understand the methodology of the room, here she is likely to miss calls on a regular basis. There are periods of time when the trades are easy to spot and the copy traders do well; but in choppy markets it is very difficult to devote 100% of your attention to the screen, as opportunities in choppy markets occur at moment’s notice, and are far and few between. On the other hand, if the individuals in the room are familiar with the trading methodology of the room, they are generally anticipating a buy or sell call before it is even announced. This knowledge of the trading room methodology may be the result of a course offered by the trading room or mentorship options. In either instance, the trader is aware of where potential setups occur and be ready to enter a buy–stop or sell–stop. In summary, I have pointed out that copycat traders can enjoy a moderate success under certain conditions, but often struggle when the market becomes more volatile. I think that the trading room is a great way to learn a certain trader’s methodology, but it should be a stepping stone to trading on your own. Perhaps 8 to 12 months and trading room, along with proper training, is an optimal way to learn a good system. It is my belief that long-term dependence on trading rooms is probably not a sound plan. 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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