Rating trading rooms is considered the latest news across the world of e-mini trading. Oddly enough, I needed spent little or no in the last 8 years considering other trading sites or mentoring programs. Out of your blue, Dean Handley starts a trading room rating service based upon his own methodology with very mixed results and a tepid reception through 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 which the vendor was really 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 say that trading rooms are just places for individuals that either don't prefer to trade alone (retail trading could be a lonely business) or don't need to learn to trade. With that being said, this sets up a great chance of a trading educator to have a fast buck off of an inexperienced trader and the trading operator has the option for making the area the place where people can share a few ideas and make some funds. After looking at more reviews than I care to admit, I became dismayed to discover a large number of trading rooms simply are substandard. Is the things i think an effective room should have:
The lead trader should be trading with individuals the area: It appears to be where there are a good number of Gap trading room
in which the moderator fails to actually trade but alternatively gives an ongoing monologue in regards to the merits of trading at this particular level or that level but never actually specifies specific entries and exits. This reminds me in the President's "State in the Union" speech and also the news commentary that follows. Which would be to declare that a group of talking heads hashes over precisely what POTUS says and explains it into 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 heard and understood.
Without having a DOM up traders cannot see best places to enter and exit: The DOM is the heart with the trading experience and proof on the room members that you will be not only a commentator but someone that actually understands how you can trade. Needless to say, the danger on the room operator is he/she might not work well and thus lose members at a rapid rate. One common complaint I hear inside my room is without any rooms show a DOM, therefore it is tricky to duplicate trades the moderator may or may not call.
If you are intending to operate an enterprise, you need to at the very least have the ability to prove you can do whatever you say you can try: In my view, showing a potential customer a few highly redacted brokerage statements is not going to violate any particular laws. The NFA seems to accept this standard mainly because it has specifically stated simply that; there may be no problem with showing several redacted brokerage statements. So, in case a prospective trading room operator provides a lot of baloney about violating his client's privacy laws, it is possible to inform them they are filled with it; it is allowed along with the reason most traders don't desire to show brokerage statements is that they would shine a poor light on the trading performance.
Overall the review sites are incredibly disappointing as well as a bit disheartening. I came into this business coming from the world of institutional trading and knew hardly any about retail trading or maybe the retail trading business. I am just in favour of transparent trading rooms where client knows what he/she actually is purchasing and receives a fair shake from the trading room operator.