This is a headline that, in some similar iteration, I read on dozens of websites when I peruse what various vendors offer to prospective clients, and it is a very enticing offer at that. But there are several problems with this attention-grabbing come-on; it isn’t true. I will be the first to tell you that you can make a wonderful living e-mini trading, but if you’re planning to be a millionaire within 365 days then you can count on being sorely disappointed. E-mini trading takes time to perfect and a good deal of chart time. Lacking a solid foundation in either of these two disciplines can result in a disheartening result. Learning to trade takes time and patience and there are no quick shortcuts (other than innate intelligence) that can speed up the learning process.
So how come so many sites promise something that is not really achievable?
The obvious answer to this question is simple; to make money. This industry has no small number of individuals who start websites that promise fantastic returns and do not have the skill to deliver. When things start going back, (i.e.-the room starts to revolt against the vendor and demand their money back) they simply close up shop and move on to start another similar website. I have watched this happen over and over in the last six years and understand the frustration of new traders when they shill out hard-earning money for something they could have easily have found in a basic textbook.
On the other hand, there are a handful of vendors who compile a couple of good earning months, no matter their trading experience, and consider that track record something that potential student traders can place a good deal of faith in trusting. Unfortunately, a couple of good months of trading can be the result of very favorable market conditions, not the traders skill. Trending markets typically produce some impressive earning numbers. If you are using a mechanical trading system this is especially true. The downside to this problem is when the e-mini market starts to go sideways, as oppose to trending, you find yourself in the mechanical trading system netherworld. Mechanical systems tend to whipsaw back and forth and may result in substantial losses. Anyone who trades lagging indicators can attest to this fact and most mechanical trading systems utilize lagging indicators.
This article is not about discouraging potential traders from pursuing a career in e-mini trading but is a realistic account of what you can expect. For starters, it is going to take several months just to get a very general “feel” for the market and how it functions. New traders often look at the market as an anthropomorphic entity; it is not, the market should be a constant and the main variable is the way you trade the market and it’s many phases. The market is either trending, contracting or consolidating and you have to change your trading style to accommodate which phase the market is entering and exiting; it’s not a terribly easy job, at times.
Here is my advice: Take your time learning and build a solid trading foundation based upon generally accepted trading methodology. Some people will learn this much quicker than others, but how fast you learn in no indication of how effective trader you will become. Work hard and practice, you will get there if you really want to succeed. As for the million bucks, I think you can safely count that possibility out.