Live trading rooms are online chat sessions where a professional day trader (moderator) calls technical setups/trades and helps participants see the Markets. In these trade rooms, both novice and seasoned traders watch the moderator’s charts, ask questions about setups and using the platform, and trade themselves, either live or in simulation mode.
In a good trade room, the professional moderator does not encourage the participants to enter on just what he is doing, but explains why such and such is a setup. The participants should be able to make their own decisions based upon the advice being offered.
Trading rooms offer many benefits to both the novice and seasoned day traders alike. The novice trader can begin to see chart setups, learn a new trading system, and feel more comfortable knowing that the moderator is sitting right there, available for help. They won’t feel all alone in the world trading blindly. The seasoned traders also benefit because it is four eyes looking at the same charts instead of two. The moderator may see a setup or see why it is not a setup and not advisable to enter. Even seasoned veterans appreciate the extra set of eyes before taking a trade. Understand…day trading can be an extremely lonely profession, with no one to talk to but the computer monitor, the dog or the cat.
There are several types of trading rooms available on the Market. Some trading rooms are for teaching only, where a professional trader shows how to use the trading system in which they are experienced. This can be extremely helpful to new traders who just bought the software and are not sure how to use all of its features.
Other trade rooms have the moderator actually calling trades. This type of arrangement is a bit dicey. If the moderator is not a licensed broker and calls trades, and the participant enters the trade and loses, the moderator is not liable in any way for the participant’s loss. Trade rooms where the moderator simply calls trades without explanation have limited value in the long run. When the moderator isn’t there that day for whatever reason, the participant is not able to trade that day. It’s better to have a trade room where there is information transfer so the participant can become independent.
Another trade room, which, over time, is probably the best, is the room in which the moderator does not actually call trades. Instead, the moderator calls setups, at the same time explaining why it is a viable setup, and then leaves it up to the participant’s discretion as to taking the trade or not. The effectiveness of this type of room, especially for a novice trader, is that they will learn to see the setups for themselves and take responsibility for the trading they do. If there is a loss, they won’t blame the moderator.
Regardless of the style of the room, most trade rooms are oriented towards a specific trading system with certain trading strategies. Some rooms offer free trials, others do not. Generally, the free trials to the rooms are not worth much. Since the room is tailored to a specific trading system and trading strategies, without prior knowledge of the system, understanding what is being done in the room is limited.
Probably the worst arrangement for trade rooms is where there is just chatting back and forth between participants. It is difficult to learn anything in a room like that, without a moderator. It is kind of like a free for all–trade at your own risk. This arrangement is not much more than background noise.
As far as audio / video, some trade rooms are all audio (Voice over IP), with chatting back and forth between the pro moderator and the participants, or just the moderator alone. Other rooms offer audio from the moderator and texting from the participants.
In some rooms, texting can be all the participants and the moderator; in other rooms, texting is limited to each participant texting the moderator and the moderator reading the message and answering aloud or texting back to the participant alone, depending upon the nature of the question.
Some chatrooms offer both audio and video, where the participants can hear the moderator and see the moderator’s charts. This is good and bad. It is good in the sense that the moderator can have more charts up than the participant, and cover more markets. It is bad if the participant decides to rely on the moderator’s charts and the moderator’s internet connection goes down.
You’ll also want to decide the kind of Market you want to trade. There are are trade rooms for trading stocks, trading futures, emini, commodities, technical analysis rooms, fundamental analysis rooms.
It is advisable when deciding to use a trade room that you figure out what you want the trade room to do for you. Do you want to see the moderator’s charts? Do you want the moderator to call trades for you? Do you want to become an independent trader? Once you make that decision, finding the proper trade room is a much easier task.
Barbara Cohen CIO, Shadowtraders, and professional day trader, specializes in teaching students how they can be trading futures with their own trading system and trading strategies. Ms. Cohen has helped hundreds of traders achieve their goals trading. Find out if trading futures is for you by attending one of Ms. Cohen’s Free Webinars. Check out my Futures Trading Articles. For more information, send an email to firstname.lastname@example.org or call 866-617-2037 today.