It’s my perception that one of many major causes of latest trader failure is coming into the e-mini trading area with poor coaching and undercapitalization. These two problems in tandem exacerbate the issues each problem causes in its own right; briefly, the sum of those two problems is greater than the issue caused by one of many problems alone. Traders who are poorly trained have one unmistakable trait; they have an inclination to overtrade. I’ve noticed this phenomenon throughout the course of my career. Merchants who lack a strong e-mini trading foundation tend to trade too many contracts and trade too often. After all, this difficulty alone is sufficient to get the typical trader on the red aspect of the ledger, however add undercapitalization to the equation and you’ve got the recipe for a really short e-mini trading career. Continue reading →