Rating trading rooms is among the most latest news on the planet of e-mini trading. Oddly enough, I needed spent very little in the last 8 years investigating other trading sites or mentoring programs. Out of the blue, Dean Handley starts a trading room rating service based on his personal methodology with very mixed results and a tepid reception with the e-mini trading community. Hot on his heels was Emmett Moore, at tradingschools.org, who began a campaign for transparency in trading rooms; he wanted proof how the vendor was actually trading, was transparent in showing his DOM, and redacted brokerage statements proving the operator was not only trading but trading profitably.
Through the onset, let me claim that trading rooms are merely places for individuals that either don't prefer to trade alone (retail trading can be a lonely business) or don't want to learn to trade. That being said, this sets up the perfect opportunity for a trading educator to produce a fast buck away from an inexperienced trader or maybe the trading operator has the option for making the space a spot where people can share several ideas and then make some money. Reading more reviews than I care to admit, I used to be dismayed to locate a good number of trading rooms simply are substandard. The following is things i think a very good room ought to have:
The lead trader should be trading with members of the room: It seems where there are a large number of Live trading room
where moderator does not actually trade but instead offers an ongoing monologue about the merits of trading at this particular level or that level but never actually specifies specific entries and exits. This reminds me of the President's "State in the Union" speech and the news commentary that follows. Which would be to point out that a team of talking heads hashes over exactly what POTUS says and explains it for the audience; either the networks have a very low opinion of public education or desperately need to fill the environment with willy-nilly blather about something I really listened to and understood.
Without having a DOM up traders cannot see best places to enter and exit: The DOM would be the heart in the trading experience and proof on the room members you are not simply a commentator but a person who actually understands the best way to trade. Not surprisingly, the danger towards the room operator is the fact he/she might not perform well and thus lose members with a rapid rate. One common complaint I hear within my room is always that almost no rooms show a DOM, so it will be tricky to duplicate trades the moderator might or might not call.
If you are intending to operate a company, you must no less than manage to prove that can be done what you say that can be done: I believe, showing a potential client some highly redacted brokerage statements does not violate any particular laws. The NFA seems to concur with this standard since it has specifically stated that; there is certainly nothing wrong with showing several redacted brokerage statements. So, in case a prospective trading room operator gives you a load of baloney about violating his client's privacy laws, you could let them know they are packed with it; it is actually allowed and also the reason most traders don't wish to show brokerage statements is because would shine a negative light in their trading performance.
On the whole the review sites are really disappointing along with a bit disheartening. I came into this business in the world of institutional trading and knew almost no about retail trading or maybe the retail trading business. I am just in favour of transparent trading rooms where client knows what he/she is purchasing and gets a fair shake through the trading room operator.