Many day traders work from home, isolated for hours without anyone around to distract them. And while the lone wolf mentality has become quite popular in the trading community, the truth is that it can be quite frustrating and even boring.
Sometimes you want the ability to share your successes and even failures with a like-minded community. You want to talk about what is going on in the market. You want to compare strategies to see why something might not be working for you. And most of all, you want to grow as a day trader.
That’s where trading rooms come in.
Trading rooms are online communities where traders can interact and share ideas on the market, their strategies, anything really. They are also great for people just starting out or for seasoned traders who want to learn new tricks since they allow you to ask questions and learn from your peers.
Most trading rooms are controlled by moderators. They oversee the chats and ensure members adhere to the rules.
While trading rooms offer great potential to grow as a futures trader and further develop your skills with like-minded individuals, they can also carry risk. After all, not all trading rooms are created equal.
Because of this, it is important to know what to look for in a trading room and what to avoid.
What To Look For
Are They Transparent?
Transparency is highly important when considering whether to join a trading room or not.
Trading rooms charge fees to be a member, so you want to know exactly what goes on within the trading room before you start forking out big bucks on it.
If the trading room has a moderator calling trades, are they actual brokers? Do the strategies being displayed have actual results to back them up?
You want to know as much as you can about a trading room before joining it and, if the trading room is reputable, it should have no problem being upfront about such information.
Do They Trade Live?
Not all trading rooms trade live and while this may not raise a red flag at first, it should.
Trading live is the best way to put what you learned to the test as well as ensure that what you’re being shown produces actual results.
If the moderator can make consistent successful trades in front of your eyes, then you know that it’s the real deal.
Do They Show Their Trade Settings?
This one goes hand in hand with transparency. You want to choose a trading room where moderators aren’t afraid of showing their trade settings.
After all, learning a new strategy won’t do much good unless you know how to implement it properly.
A trading room that refuses to show their trade settings probably has something to hide or doesn’t really want it’s members to succeed.
Do They Have A Clear Plan To Reduce Risk?
Part of being in a trading room is having greater security when trading.
Since it’s not just you trading alone, you can better determine what will work and what won’t to reduce your risk by paying attention to what other traders and moderators are doing.
As such, you want to choose a trading room that has a clear plan to reduce risk.
This shows that they actually care about the success of their community of traders and gives you added peace of mind when following new strategies.
What To Avoid
Do They Take 100% Of Their Trades In Simulation?
You want to keep an eye out for trading rooms that take all of their trades in simulation.
Why? Because not everything that works in simulation works in the real trading market.
A strategy might have a high success rate but that doesn’t mean that it’ll behave the same way when it actually matters. You want a strategy that performs well on simulation but also has a proven track record in real world application.
Do They Announce Trades After They’re In Them?
Many trading rooms will announce trades once they’re in them. By then it only gives you a small window to actually get into the trade and configure your setup.
Not only that, but it gives the appearance that they are finding out about the trades at the same time you are, rather than having done previous research.
While that may or not be the case, it’s always better to stick to a trading room that is confident in its research and announces their trades before they’re in them.
Are The Prices Too High?
While many, or even most, trading rooms require a monthly or yearly fee to be a member, the prices can vary greatly.
High priced trading rooms might market themselves as the elite but the truth is that you don’t need to pay top dollar to be part of a legitimate trading room that offers their members great benefits.
Afterall, the more you pay for a trading room, the more you are cutting into your trading money and unless the trading room is making up for it, it probably isn’t worth it.
Many trading rooms will offer a free trial and while the free trial might not include all the services that a membership would, it can give you a good idea as to what the trading room offers and whether it’s a right fit for you.
Free Futures Trading Room
Joining a trade room can offer you many benefits, whether you’re a seasoned trader or just starting out. But just like when making a trade, it is important to do your research before committing.
If you’re curious about what it would be like to be part of a community of like-minded day traders and the value a trading room can offer you, be sure to join us on Facebook for our free trade room.
10 Minute Trades will share our list of trades for the day with you, trading strategies, and how to schedule appointment-based trades so you’re in and out of the market in just minutes.