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!!