So You Think You Want to Be a E-Mini Trader? Let"s Start From the Beginning.
Most people meet someone they know who is a full-time e-mini trader (a successful one), and decide that trading from home sounds like a great way to make a living. You might find the trading lifestyle attractive or the flexible leisure hours a plus. But before you decide that trading is a primary goal, consider the bare necessities a trader must start with. Things to consider are:
€ Where will you trade? You will need a private area where you can work uninterrupted.
€ Do you have a quality computer? A computer with at least a dual core processor and plenty of RAM (6+ gigs) is an absolute necessity.
€ Do you have a high speed internet connection? You must have some form of broadband connection in order to trade.
€ You will need to choose a broker and this can be an important choice. Your broker can be a real asset to your trading effort.
€ You will need to learn a system of trading that is consistently profitable. This generally entails researching to find a good course + good mentoring.
Where will you trade?
It is very important that you have a place to trade that is private and you can work undisturbed. This is not to say you have to banish your spouse and children, only that during work hours your focus is on your job, the same way it would be if you worked at an office or outdoor job. Distractions can be very expensive in the trading world.
Do you have a quality computer?
If you have an older computer slogging along on XP and two gigs of RAM, you may be able to get by for a short time. But in the long run, you should count on buying a top end business style computer for your trading needs. Windows 7 has been very stable in my experience, and I run 10 gigs of DDR3 RAM. Your computer is an important component in your trading operation.
Do you have a high speed internet connection?
Trading takes precision timing when entering and exiting trades. A dial up connection will simply not give you rapid response needed to exit and enter trades. At a very minimum, ADSL is a must, and a cable modem is optimal. The more speed the better.
You will need to choose a broker.
Many traders choose their broker by how low a commission they can wrangle out of a broker. Of course, low commission accounts are expected to be low maintenance accounts, so don't expect a ton of support if you have demanded a low commission for yourself and cut into a broker's profits. I would pick one of the lower priced brokers who seems anxious to get your account and can provide support, if needed. You might also want to experiment with the trading platform a particular firm uses to see if it is of high quality. Ask a lot of questions of a potential broker, and see if the answers meet your needs.
You will need to learn a system to trade profitably.
This is where the rubber meets the road, and it is also the toughest decision you will make in starting to trade. Research systems and educators to see if their website claims are in line with reality. Ask for potential references, and ask to sit in the trading room a few days, if the educator has one. You should be prepared for rigorous training activities; reading in the evening, practicing on a simulator, spending time practice trading, evaluating your trading weaknesses.
A Special Note: Don't quit your day job until you are convinced that you can consistently produce profits in your trading.
€ Where will you trade? You will need a private area where you can work uninterrupted.
€ Do you have a quality computer? A computer with at least a dual core processor and plenty of RAM (6+ gigs) is an absolute necessity.
€ Do you have a high speed internet connection? You must have some form of broadband connection in order to trade.
€ You will need to choose a broker and this can be an important choice. Your broker can be a real asset to your trading effort.
€ You will need to learn a system of trading that is consistently profitable. This generally entails researching to find a good course + good mentoring.
Where will you trade?
It is very important that you have a place to trade that is private and you can work undisturbed. This is not to say you have to banish your spouse and children, only that during work hours your focus is on your job, the same way it would be if you worked at an office or outdoor job. Distractions can be very expensive in the trading world.
Do you have a quality computer?
If you have an older computer slogging along on XP and two gigs of RAM, you may be able to get by for a short time. But in the long run, you should count on buying a top end business style computer for your trading needs. Windows 7 has been very stable in my experience, and I run 10 gigs of DDR3 RAM. Your computer is an important component in your trading operation.
Do you have a high speed internet connection?
Trading takes precision timing when entering and exiting trades. A dial up connection will simply not give you rapid response needed to exit and enter trades. At a very minimum, ADSL is a must, and a cable modem is optimal. The more speed the better.
You will need to choose a broker.
Many traders choose their broker by how low a commission they can wrangle out of a broker. Of course, low commission accounts are expected to be low maintenance accounts, so don't expect a ton of support if you have demanded a low commission for yourself and cut into a broker's profits. I would pick one of the lower priced brokers who seems anxious to get your account and can provide support, if needed. You might also want to experiment with the trading platform a particular firm uses to see if it is of high quality. Ask a lot of questions of a potential broker, and see if the answers meet your needs.
You will need to learn a system to trade profitably.
This is where the rubber meets the road, and it is also the toughest decision you will make in starting to trade. Research systems and educators to see if their website claims are in line with reality. Ask for potential references, and ask to sit in the trading room a few days, if the educator has one. You should be prepared for rigorous training activities; reading in the evening, practicing on a simulator, spending time practice trading, evaluating your trading weaknesses.
A Special Note: Don't quit your day job until you are convinced that you can consistently produce profits in your trading.
