Throughout the course of my career I have had a chance to meet people with all sorts of personalities who wanted to be involving in e-mini trading. Of course, early in my career there were no e-mini contracts available, for that matter there were no computers. I am a bit embarrassed to admit that fact. We have come a long way, and these days anyone with a trading account and a computer can call themselves an e-mini trader. Equal access to the markets is a great thing; but there are individuals who probably should avoid e-mini trading at all costs.

Why?

The first thing I tell novice traders is that set-ups are easy to learn and trading, in general doesnt require a genius level intelligence. No, my first words are always, trading is about how you think. Of course, this statement usually leaves these new traders in a quandary and my comment is usually dismissed as so much hot air. But I never let up; time and time again, especially when we analyze daily trades entered in each traders log, I find that the set-up was okay, but the situation in which the trade was taken was out of context. Often times, several subsequent low probability trades follow in succession and a voice sounds in my mind, Houston, we have a problem.

There are several types of individuals who should not trade. I should also point out that I am not a psychiatrist or psychologist, just an experienced trader, so my opinions may be a bit subjective; but I can usually tell within a day or two what kind of trading potential most individuals possess. This assessment has nothing to do with how smart, handsome, beautiful, articulate or clever an individual may be; no, it has to do with understanding their thought process. Here are my three classes of e-mini traders doomed to failure (and its been pretty accurate over the years):

1. The gambler is a class of trader who doesnt understand that e-mini trading is about probability. Even under the best of conditions for initiating a trade, a trade fails. Having seen this phenomena the gambler begins a new methodology based loosely on rolling dice; he/she turns the trading process into a game of simple chance without regard to market conditions, trends, or situational awareness.
2. The screamer is almost always doomed to a quick and painful demise. Winning and losing is part of the trading game. You are going to lose a few trades; the idea is to win substantially more trades than you lose. When the screamer loses a trade he goes into a tirade cursing himself, the market, and sometimes the nice trading instructor. Lack of emotional control is a dead give-away to failure. Precise trading requires emotional control.
3. The do-it-yourself trader is the most disastrous of all; this individual rejects most trading tenets and is going to reinvent the wheel as it relates to trading. He tests various groups of indicators/oscillators, back tests all variables in minute detail and finally arrives at a sure fire solution that millions of traders who came before he/she could not quite comprehend. The do-it-yourselfer usually dies a quick demise, as the only thing new in trading is technology and computers. The strategies have remained static for decades.

In summary, I have pointed out that some personality types should avoid trading because their personality/emotions are not suitable for the profession. To be sure, I would make a lousy plumber or electrician. We all have skills and personality traits that are conducive to a given profession. Conversely, not all have skills and personality traits to make a living e-mini trading. As always, best of luck in your trading.