subject: How Much Can I Really Earn My First Year Of E-mini Trading? [print this page] A casual and non-scientific surfing of several well-known (and some that are not quite so well known) e-mini trading education sites revealed a wide range of guarantees and earnings projections. I was perplexed with many of the claims these sites offered. One site made such bombastic claims that I was half compelled to enroll in the course, just to improve my own trading.
Of course, there is a great deal of difference between making unrealistic claims about earnings and actually delivering those kinds of returns are two different matters. If I were an individual shopping for a trading program, I would generally steer clear of advertisements that make claims that sound too good to be true. They generally are.
Okay, okay...but how much dough can I put into my bank account?
Well, I wouldnt make plans on buying that second house in Aruba from your earnings. With a few notable exceptions, most traders find themselves facing a far different trading position:
80-90% of all new traders deplete their futures account balance within the first 3 months.
Of the traders who survived the first 3 months, 50% are gradually depleting their futures account; another 40% are playing the boom and bust game where they swing from excellent earnings to disturbing losses on a regular basis. And finally, 10% are consistently trading profitably.
Obviously, the figures above are daunting, but not insurmountable. I suspect a good deal of the initial failure new traders experience comes from improper preparation and limited actual live trading experience. Further, it is rare when a student applies himself or herself completely to the task. There is a good deal of information to learn and making sense of the myriad of differing secondary fields (record keeping, trade management, money managementetc) make the actual placing of a trade seem, at times, like a small part of the process you are learning.
But lets return to the question at hand. How much money can you expect to make your first year? For me, I would guess that $40-70,000 is a reasonable guess. After that, your skills and knowledge base should grow your income exponentially.
In summary, I have tried to give an honest, straightforward answer to the question so often asked. I also suggest that proper trade technique management, money management, and other secondary skills are essential knowledge for success. Very few people can simultaneously balance the varied trading skill set while trading profitably from the start; but you can get there, and everyone progresses at their own individual pace.
by: David S Adams
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