Does The Essentials of Trading cover strategies related to E-mini S&Ps?

September 24, 2008

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John Forman - The Essentials of Trading author

Here’s another inquiry which came in recently.

Hi John:

My name is Brent and I am relatively new to the world of futures trading. I majored in finance in college, so I have a basic understanding of some of the principles and verbiage… but it’s been about 10 years since I’ve been in the classroom. I have been searching the Internet looking for information about futures trading, and I was really impressed by the “non-intimidating” approach of your website. I presently find myself in a position where I have the opportunity to pursue a career in trading. I have a few friends that have been moderately successful trading e-minis, and I think their success has awakened the “inner trader” in me… LOL…

My question to you is: Does your book cover strategies and techniques as related to E S&P Minis? Even though some of my trading friends have offered to “mentor” me, I am a person who needs to be able to understand things conceptually. I am taking a huge risk by stepping out into the trading world, however with that risk there comes the possibility of a great return. My desire is to do everything possible to ensure that I realize those great returns. I look forward to being a productive member of your trading forum!!

Answering Brent’s question directly, I would firstly say that The Essentials of Trading is not specific to any market, including the mini S&Ps. Nor does it lay out specific trading techniques, except where they are used as examples to demonstrate things or make a point.

That said, the book (and by extension the Essentials trading course) definitely does fill the need Brent describes as “…to be able to understand things conceptually”. The material is very much intended and designed to be foundational, allowing one to learn the core trading concepts and have them as a strong basis for then moving on and developing a personalized approach to trading. Outlining the requirements of a good trading plan is a key part of the presentation.

I’m a little confused by the use of the phrase “career in trading”. I don’t know if that’s just Brent’s way of talking about getting into trading seriously, whether he’s planning on going after a position in the industry, or whether he’s planning on trading for a living.

As for the part about taking a huge risk, the statement I would make is that in trading you can take whatever risk is right for you. It need not be something extreme. Actually, it shouldn’t be. A healthy appreciation of the risks is definitely a good thing, though.