Trading the S&P 500 Emini ES Futures
* The markets are more globally interconnected than ever before and most newbies or losing traders have problems understanding that
fact. Therefore, to trade the S&P 500 Emin ES futures you really need to understand what's going on in other key markets and scheduled market events while trading Emini ES.
* As noted by
wiesman02, it's not that setups don't work any more...the signals just don't appear as much when comparing 2009 to prior years of trading.
However, that could be a strategy specific statement. For example, I use a volatility base method and I had more trade opportunities in prior years in comparison to 2009 (a year of low volatility). Thus, wiesman02 could be like me and is using a method that's sensitive to volatility.
* The best pro traders in the Emini ES are the (banks, institutions, hedge funds and so on) sitting in some office with other pros that trade other key trading instruments (oil, gold, treasuries, currencies, derivatives et cetera).
If you're lucky enough to visit some of these offices in the middle of trading...it's an eye opener.
* The best retail traders (guys and gals trading from a home office) in the Emini ES are former pro traders or traders with strong collaboration with pro traders.
* The few retail traders doing good on their own after +5 years of trading with no connection to the above...they have a ton of market experience as in many years along with deep pockets (lots of capital).
Those retail traders that are successful with only a few months or few years under their belts are finding it scary to trade so far in 2009...it's tough especially with all the high frequency trading (sometimes called HFTs) going on by the big boys creating what
looks like price noise to the retail folks especially during auctioning or expirations in other key markets.
* All that chop or price noise we see so far in 2009...as retail traders, we better get off our lazy butts and watch those other key markets to see the hidden clues in the chop or price noise of the Emini ES. Simply, if you're concentrating only on the Emini ES exclusively and not monitoring other key markets out the corner of your eye...you're at a huge disadvantage as a retail trader.
That's an advantage the pros have...their buddies tells (sometimes yells) what's going on before us retail folks get wind of it...often too late for most retail folks while others with an edge are fighting over the scraps like vultures.
* Emini ES will quickly expose any trader with a weak mental game. Thus, as wiesman02 said, keep your other jobs because psychology of trading is an a$$hole.
* Just because you're profitable doesn't imply you can make a living at trading the S&P 500 Emini ES futures. To make a living at trading this monster you better know a thing or two about how to run a business like any other small business owner.
Mentoring...It's A Two Way Street
http://www.elitetrader.com/vb/showthread.php?s=&threadid=32793&perpage=1&pagenumber=7
http://www.elitetrader.com/vb/showthread.php?s=&threadid=66973&perpage=1&pagenumber=3
If a trader doesn't get mentored
in person via the mentor trading with real money in front of the trader own two eyes and with the mentor coaching the trader through the trader's real money trades...it's not mentoring. Simply, all that hindsight, weekend, after the close chat room or online help should be used as follow-up only to in person mentoring.
The best traders in the world learned it from others via
in person along with screen time...usually in an office atmoshpere. However, most of them wouldn't use the word mentored. Instead, they called it
on the job training and it was often mandatory by the boss.
Here's the problem, us retail traders (guys and gals that trade from home) are trying to duplicate that on the job training with ourselves only or with an online mentor while trading the Emini ES that has its price action moved by the professionals (banks, hedge funds, institutions et cetera). In addition, most online mentors are at a huge disadvantage in trying to help the typical retail trader because the mentor doesn't really know what
baggage the trader has on the other side of the screen and vice versa. In contrast, it's tough to mask (hide) that crap during
in person mentoring.
Summary, like wiesman02 said, as a newbie trader or losing trader...don't try to rely on it as your sole source of income without a
qualified mentored (read the info at the links above) in place because to trade the S&P 500 Emini ES futures...
You're trading against professionals with deep pockets that's surrounded by other traders that trade other key markets...all of them helping each other (team collaboration). Therefore, to do this full-time as noted by
orange_trad, you better be well capitalized. I would add that to survive the first few years of full-time trading the Emini ES you better have a strong understanding that the best traders out there are well capitalized and collaborate with others that are well capitalized...they need newbies or inexperience pros to be on the other side of their trades.
Mark
