How to Avoid Emini Trading Course Scams

To investors with limited funds, emini trading seems like an easy way to get rich online. Unfortunately for them, there are only too many scammers on the internet willing to make them believe that. Upon reflection, a thoughtful visitor would realize that if a trader really did make a fortune from day trading, they wouldn’t want to share their secrets with the world! Yet many are still fooled, misled perhaps by their own greed and naiveté.

It is strongly recommended that you review each emini trading course you find online before paying for it. To begin with, you can learn basic trading rules and tactics from quality books at a fraction of the price. Secondly, you must never forget the adage, “If it sounds too good to be true, it probably isn’t.” This cannot be truer for get-rich-quick claims. Even self-professed financial gurus that sound sincere and realistic must be viewed with skepticism. In day trading, nothing will ever take the place of personal hard work and experience.

Emini Scam Sign 1 – Rules are too specific

The stock market is highly dynamic with so many factors influencing it. How can specific, complex rules apply to something so changeable and volatile? They can’t. If your emini guru is bragging about this big secret strategy he has, it is probably fake. At best, the strategy would work only in a specific situation in the past. See Item 3.

Emini Scam Sign 2 – High capital required

Such a scheme would probably involve the use of the dreaded Martingale System, a now-debunked gambling tactic. Here you double your contract after every loss. The danger is you could risk all your funds before you know it, since losing 5-7 times in a row isn’t unknown.

A good emini training course shouldn’t expect you to put up $25,000 anyway. It robs you of the very advantage that eminis can offer.

Emini Scam Sign 3 – Backtest bragging

So the day trading guru says his system works based on back-testing for the years 2001-2008. Is that special? No. Anyone can work out a “system” that would appear to work when put on a backward time machine. Test it on the current market, and you’ll see what a guru they really are.

Emini Scam Sign 4 – Exaggerated promises

Have you noticed how emini trading courses all look alike? They have eerily similar wording too: “The biggest trading secret ever,” “Guaranteed to work in all markets,” “How I made $$$…” If our guru was so clever, why would he be sharing their trade secrets to the faceless mob that’s us?

Emini Scam Sign 5 – Lack of a good stop-loss limit and risk of ruin calculation

Risk of ruin is a gambling and finance term that refers to the likelihood of losing your bankroll or capital. It is found by weighing the chances of a profit against the chances of a loss, and the amount of the trader’s capital that is being used. Stop loss is an order to the broker to release your hold at a specified price. A trading system must never risk a high percentage of one’s capital base, and it should set a stop-loss order.

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