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I'm new to trading the futures market and i've been researching different trading programs, Secrets of Traders, LBR, DTI, etc. does anyone have insight as to which is better for a novice?
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Hi Kevinfeeder,
The services you mentioned are very different from each other and each offers several products.
Thus, its impossible to know exactly which if better for a novice considering you have not been specific to what your needs are nor what type of trading you want to be doing.
With that said, all seem to be offering one thing in common...
Mentoring Program.
If that's what your really interested in...I highly recommend you read and understand the following especially if the fees involves several thousand dollars:
1. Mentor shows recent verifiable documentation of their trading.
It works both ways...you should also show verification documentation of your own trading.
This will show the mentor that you actually need help, properly capitalized and allows the mentor a peek into possible trading problems you may already have transcribed into your methodology.
2. You should be allowed to visit the mentor and watch him/her trade even though the mentor is not required to educate you for that particular day(s).
This helps avoid the issue of false verifiable documentation because such is easy to make.
If your satisfied so far...the mentor should then go visit you in your trading environment to watch you trade.
You should compensate the mentor for any traveling expenses because by this time you already know that the mentor is the real deal.
Its at this time the mentor can determine if your trading environment has an impact on your trading (don't underestimate this)...
It's possible you could be using the wrong trading platform, charting program et cetera...
For the style of trading your doing or going to be doing.
Heck...your computer workstation may be inadequate.
The mentor can make recommendations at this time to get you on the same or similar level he/she is on.
Mentoring should not begin until you've fulfilled those recommendations.
3. You should be very specific about your goals and the mentor should be very specific about his/her goals with you because they now have valuable information about you...
Your trading environment and your trading habits.
4. At this time, you can move into the discussion about fees.
However, lets pretend a mentor and student agreed upon 2 months of mentoring (in person).
Also, until the actual mentoring begins, you should require the mentor to post his/her trades in realtime in a private chat room that you are a member so that you can be ensure his/her edge hasn't been lost nor is in some sort'uv normal drawdown period.
If the mentor already has a chat room, join it especially if its free or offers a free trial and this will give you further insights into the mentor's communication skills (very important).
Remember, past performance is not an indication of future performance.
Therefore, this is the reason why you want to stay in touch sort'uv speak prior to the actual mentoring to ensure the mentor is still profitable and involved in the markets.
Mentor should charge you a small fee for such especially if he/she is responding to any of your questions about his trades.
After all, he/she does have a verifiable trading record.
However, do not mimick the mentor's trades because you cannot possibly get the same fills nor do you understand the mentor's trade methodology at this stage of the mentor/student relationship.
5. The fee's the mentor charges you should correlate with how much income from his/her trading the mentor will miss while mentoring you.
Remember, by this time you have access to the mentor's verifiable trading record and know exactly how much you should be compensating the trader to mentor you and that compensation should not be less than the income the mentor will miss while mentoring you.
Example, if your mentor is making on average about 2K per week and you want to be mentor for 4 weeks...
Guess what, be prepared to cough up 8k.
Now, that may sound obscene but look at it this way.
Why would a trader with a verifiable trading record risk mentoring you for a lessor amount knowing they are losing money (not having the opportunity to fully devote to their own trading).
Here's another option for determining the value for the mentoring is while the mentor is trading from his/her account while trying to educate you at the same time.
If the mentor makes 1k during the week of mentoring you when there's proof they average about 2k per week...
You should at least compensate the mentor for the missing profits.
Now...the above is only the minimum.
6. Mentoring should last long enough so that the mentor can coach you through your own trades.
If you lose money during this period...its either deducted from the cost of the mentoring or a partial refund is entitled to you.
Maybe the above is the same.
7. There should always be educational material...written in stone...that explains everything or almost everything the mentor has shown to you.
8. There should be follow-ups...online or phone conferencing is ok at this point.
9. You should agree to make yourself available for reference for the mentor in case future clients ask for such...
Along with your trading records of a minimum of 3 months after the mentoring has concluded.
This allows the mentor to show future clients if there's real value to his/her service.
The point for all the above is just because someone has a verifiable successful trading record...
Doesn't imply they are suitable for teaching.
Using an academic analogy...I've met brilliant college professors that didn't know how to teach...
I guess that's what those teaching assistants were for.
10. Student and Mentor should be trading the same trading instruments via the same or similar position size.
11. Student and Mentor should be using the same trade execution platform (ex. X-Trader, NinjaTrader et cetera) even though they may be using a different broker.
The above also (although is a stringent process) helps ensure a fair value has been given for the service.
Something else...I've read several posts here all over the internet about finding someone to mentor you for free or to avoid anyone that doesn't mentor for free.
Good luck because there's no such thing as a free lunch in this business and those traders that make such suggestions (free mentoring) will never recommend to you a trader that mentor's for free.
Anybody that mentors you for free will be coughing up their time and energy...such is valuable to any successful trader.
More importantly...it has a value.
12. All mentoring should only be done
in person. However, follow-up mentoring to the in person mentoring can be done online via realtime communication.
Last of all, if you or your mentor ignore any of the above...
The odds are very high that either the student will be unsatisfied with the mentor or the mentor will be unsatisfied with the student.
Mark
(a.k.a.
NihabaAshi) Japanese Candlestick term
"Volatility Analysis is a doorway to consistent profits."