A trading room can help both new traders and experienced traders that are still struggling.
If you are profitable, and consistent in your trading then you don't need one. Most are pure bull crap anyway. (my 9 year old son said B.S. was to harsh)
Trading is not a lottery ticket, and will take years to master for most. Indicators lie and must be followed closely with price action and market structure. Any trading room that does not teach you how to read the market is one to stay away from in my humble opinion.
So many traders come into my room expecting to just blindly follow what I do and make money!! I weed out many lazy people (wouldn't call them traders as they will hop from room to room blaming everyone else but themselves until they have destroyed their lives) right away by telling them it is not going to happen.
Because most can not focus for more then a few minutes at a time, and after I am in a trade on the chart, they have missed it and it was a great trade, then they focus to catch the next two or three losers, now they are down, angry, frustrated and want to blame somebody, so they turn there attention elsewhere and miss the next big winner. Now they are really angry and decide to stay focused and revenge trade doubling there size just in time to take the next couple losers.
At this point, they either leave my room claiming it a failure, or they get me in a one on one and I deal with there head issues. (focus, work ethic)
Blatantly honest with then I tell them to get there head out of there $%#, then I give them a weekend full of chart work, tell them to study the first few chapters of trading in the zone (rest later) and at that point I lose a few more . (still weeding out the ones that really want to learn from the rest that would waste my time).
Believe me, I would rather lose the students that want to treat trading as a hobby and waste my time. I don't need the money.
Now, the ones that are left and still with me have advanced to the next level in there trading already, because they are able to put away ego's and listen. They do the work assigned to them and more!
Trading is hard work and not everyone will make it.
Yes I am a vendor and trade room operator, but more important, I am a trader who in my 16 years of learning, losing, break even, and finally, yes, finally profitable have come to the conclusion that most trading room operators couldn't trade there way out of a paper bag!
I must also say, that some days I just want to close shop and have a very peaceful career trading as opposed to adding teaching to the mix! But, I am quickly rewarded (yes a little ego) when my students send me account statements showing their progress, they are required to prove their trading results before moving up in my belt system.
I watch them stop overtrading from taking 50 trades a day to taking 6 to 10 trades a day and actually break even consistently. Then, they start making small profits consistently, then finally large profits , this alone keeps me going.
I guess that I should get used to the turn over.
I can usually tell the first day whether a trader will make it or not, although I have been surprised a few times.
Here are a few things that are important! This is by no means a complete list, but you could keep a thread going by adding to it if so desired.
1. Every trader needs to take responsibility for their trading, mistakes, losses, and
2. If a trader can learn that losses are just a part of doing business then they are way
ahead of the game. If a trader can not get this one, then they will hesitate and miss the
3. If a trader can learn that large leverage is a disaster waiting to happen then they are
starting to get it. (No blown out accounts) This does not have to be a right of passage!
4.If a trader can learn to read price action and trade in the direction of higher time frames,
and stay out of choppy markets then they might make it. (before anyone
tries to correct me here, yes, counter trend trading can be extremely profitable, but should be reserved
for experienced traders only)
5. Trade on sim to start and treat it as if it were real. (Yes, Sim is not live but is very
valuable for new or losing traders)
6. When profitable on Sim consistently, go to a micro Forex account risking .10C per pip
7. When profitable on Micro, then go to a mini Forex account risking 1.00 per pip
8. when profitable on Mini, then go to a full size account (providing you have risk money available)
9. At this point you can start looking at some of the futures markets as well
Of course this is all just my humble opinion and yes I am a vendor. No, this is not meant to be self promotion!!
This is pure honesty as to what I have experienced on both sides of the Vendor fence!!
Last edited by JamTheTrader; April 10th, 2010 at 09:43 AM.
The following 6 users say Thank You to JamTheTrader for this post:
You couldnt have said it any better. Tell a new trader to set a goal of $50 a day 4 out of 5 days and they will say "No way brother. Why not $500? I ain't gonna pay for that Ferrari with $200 a WEEK!" lol
Great post Jag!
The following user says Thank You to jungian for this post:
I have been using Market Profile for a decade now, so when I see a room that is using MP in his trading, I always curious if I can learn something from .
So I check Channel trading and pay for one Month $50 at that time and to be honest I did not learn one thing new to my MP knowledge, probably and I hope Kevin(Moderator of the room) learn something for me.
But what start to get my attention was the emotional and mental clarity that he show in all his calls,
I know that some traders don't like rooms that make calls , but I thinks that is extremely important to see real life how a pro think and act in the battle field . I understand that a call with out teaching is meaningless, but he make most of the calls with sufficient time and explaining the set up why he is taking the trade where to put the stop and what to expect for a target. I will say that once he in the trade
his mind is very focus and very clear and he management the trade with impeccable discipline and always explaining what he is seeing and thinking of the market.
The emotional intelligence is his best quality , if he win or lose he is always in control and he can take another trade with the same mental clarity over and over.
In the 2 months in the room I will say that 70% of his trade are profitable , 15% brake even and 15% stop out of -1 point.
In 2 months he only have 2 days on red ( I will say pink) nothing to worry about
He use Market Profile in a very efficiency way to find support and Resistance levels + Fib # but his strong side come from reading Price Action , I never see any one that can read the market with such a confidence and precision.
I has been in a lot of rooms and I can say that this room has something new to offer: a professional trader that know how to make money every day and most important , he Know how to teach
If you have experience the room will more than enough but if you a new trader he offer seminars every week.
. He show his charts in gotowebinar where he explain all his set ups in real time,very clear and in advance
NO I am not affiliate in any way to his room
and I don't know for sure if he trade real money because he don't show his Dom.in the gotowebinar presentation
But I will say one thing , in this 2 months he prove me that he can read and trade the market like very few can and the best part is that he is well articulate in his teaching. He answer all the questions
One thing that I dont like it is that you can not communicate or interact whit the participators of the room your typing is only see by him . He offer me to use the microphone but my English is worst when I speaking than when I type
The only reason I am posting this is to present another option for a new trader or some one that is having a hard time to put his trading together. You can check, is this kind of trading go with your personality.
As all we know that if you don't understand the Market and yourself your probabilities to make a living in this sport are very small, even if you have the best education.
Hope some one can benefice from this info. And Excuse my English
Best to all
The following 14 users say Thank You to mayazoro for this post:
Hey a live trading room should be used to find trading buddies, stay awake , but most importantly to cross check your system to the one presented in the room. There are a few good rooms. Which one you pick should be geared to your level of understanding of trading. Personally I like rooms who fire off trades to order to scalp. Never just take the trades know why YOU are taking them.
The worst one I have been to was Puretick. I took up a trial and went in there to take a look. I watched the guy trying to buy a break out of a consolidation off the POC several times each time it failed, but he was claiming he got a break even, I couldn't see how he b/e, it looked like stop out to me .... anyway I would never try to buy off the POC like he was, even back then when I was still just a beginner.
So I tried to cancel the trial and make sure I didn't get billed, but they would not cancel it and everytime I tried they went through the same old sales crap about how they could offer me a good deal, half price etc etc etc.
In the end I had to put a freeze on my credit card to prevent further charges. After doing some searching around I see that I was not the only one to have this issue.
I still get their email marketing garbage, with no way to opt out of it automatically and they will not take me off the email list even after several polite requests.
The following 7 users say Thank You to webart for this post:
The whole idea of a trading room though is illogical. The online poker world has similar coaching websites like trading rooms but at least those make sense from a self interest standpoint of those who are coaching. The customer pays you money so you can help them move up to the stakes you are playing at, both sides benefit as the one doing the coaching has now increased the size of the economy they play at and the one buying the coaching is a better player.
In trading with only one level/stake and so many other avenues as far as managing OPM, the only logical reason to open a trading room is because you are sick of the volatility of trading itself and want a more steady cash flow. Which begs the question if you are really a good trader if you are sick of the volatility of trading...
Not to mention from the customer perspective, you are basically paying a lot of money to get knowingly front ran.