PillarTrading's  Instablog

Send Message
Professional Futures trader and educator.
My company:
Pillar Trading
My blog:
Pillar Trading
  • E-mini Futures Trading: Why Most Retail Traders Fail 0 comments
    Sep 6, 2010 2:18 AM | about stocks: ES-OLD, CL

    by Lance Burkhart

    The financial markets are not an easy place to make a
    living. They thrive on inexperience and misinformation.
    Novice traders with limited market knowledge act as
    permanent ATMs for the big institutional traders ever
    present in today's electronic markets. In the end the
    majority of retail day traders lose for exactly the same

    Unlike their unsuccessful counter parts, profitable traders
    know how to spot edges in the markets and how to use their
    weaknesses as strengths. The ability to take on information
    and use it to your advantage is what will separate you from
    losing traders. To understand how to get started the right
    way we need to go over the mistakes so many traders make
    each day.

    1. Lack of Capital

    Trading is an expensive endeavour. Although there is no
    perfect or set amount of capital needed to ensure success in
    the markets it is often understood that anything less than
    5,000 is unrealistic. Commissions have been drastically
    reduced since the advent of the electronic exchanges but
    retail traders are still exposed to serious back end costs.
    Day traders are the most affected because they will usually
    take three or four trades a day in order to turn a profit.
    Even with low commissions that frequency of trading can
    quickly eat into a trader's bottom line. If your trading
    capital is low look to start out in futures or forex trading
    as it usually requires less capital to open an account.
    ***WARNING***Be very careful when trading futures and forex
    as you can lose more than your initial investment. Trade
    within your limits.***

    2. No Clear Trading Strategy

    Trading is a business and if you want to be successful you
    need to treat it as such. There is no such thing as a born
    market guru. Individuals who make a living trading do so
    because they have a skill set and they have a plan. The plan
    allows them to stay on track and focus on their core money
    making set ups. Most retail traders try a little bit of
    everything before they settle into a strategy that suits
    their style. Do yourself a favour and do your research
    before you start trading with real money. Moving back and
    forth between strategies can lead to confusion and major
    drawdowns in one's account.

    3. Uneducated About Price Action and Market Behaviour

    Regardless of your trading capital or strategy, if you
    don't understand how and why markets operate you aren't
    going to be successful as a trader. Learning to walk before
    you run is common sense yet time and time again I talk to
    traders who jumped into the market without any specific
    trading experience. Do yourself a favour and find someone
    who is already successful in the markets and learn as much
    as you can from them. You don't have to copy their style
    entirely but you should take what works for you and makes
    sense and tweak it so it aligns with your own trading
    personality. Doing this over and over again and exposing
    yourself to as many different styles and opinions as
    possible will open up your trading possibilities and keep
    you from getting stale.

    These small details can help you avoid the vast majority of
    pain and hardship that so many novice traders face when they
    start trading in the e-mini futures market. Use your
    knowledge to your advantage and you could be on your way to
    a very successful trading career.

    For more information on how to become a profitable at e-mini
    , visit the #1 source fore-mini trading

    Disclosure: longeur/usd
    Stocks: ES-OLD, CL
Back To PillarTrading's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • Emini S&P 500 needs to see this double top taken out to reach the mid term target with the help of some shorts getting squeezed
    Dec 3, 2010
  • The USD/JPY looks set to continue lower until it hits our major mid term trend target.
    Oct 18, 2010
  • Gap fill on the ES-OLD could be cause for a very volatile open. Sitting right on the entry zone for mid term longs at 1137.00
    Sep 28, 2010
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.