I have been contemplating getting out of trading stocks into emini futures. Stocks it seems one can never do enough research every single day...week etc. Have to consistently be aware what is going on with the companies and also the sectors...industries...and overall mkts. On top of that, you can get thrown around a bit with surprise news releases...upgrades/downgrades...earnings...etc. So im thinking if all i traded was say the nasdaq emini...i wouldn't have to spend so much time on macro events.....just concentrate on the charts....basing my trades of technicals. Am i way off on this line of thinking? Any input would be appreciated....thanks.
I think you're basically correct, although it kind of depends on your trading methodology. You do need to know when the economic numbers are coming out and when important stocks release earnings, so you're not totally free from watching the news. It is also much easier to get a fill in futures than stocks, so you don't waste a lot of effort there either.
Picking stocks vs index futures are two different animals. Index futures move following things such as world events, economic reports, Greenspan, etc., things like company announcements, PE ratios, etc. don't mean much at all to the SP or NDX. I think you might find the futures easier overall (esp. your research), but its no day at the beach. Best of Luck
I hate to disagree with you but bad news and bad earnings about a company with a big market Cap means a lot to a scalper. In some instances, one BIG company will take the whole market in one direction or another.
I find trading indices easier. I've done both. I like futures for the instantaneous fills (with no one screwing you on execution), and the volatility. I would recommend trading more than just one though. NQ may go flat when ES rocks and visa versa. My personal favorite is ER2 (Russ 2000). Jay PS you need to do a bit of homework first of course to se how they move, and what reports to wait for. (i.e retail sales usually means nothing, while employment, and now, crude inventories mean a lot).
Index futures are not easy to trade. CME Index futures don't move much (except for major Currency products and DAX futures) , i think if someone knows how to trade stocks, they offer much better opportunities.
Based on what criteria? The ave true range in the Russell 2000 index is 12 points. That's $1200 per day per contract. One contract requires $500 margin at most brokers. You have all the volatility you need. WAY more than with just about any stock. Actually, well more than enough volatility to hang yourself with. Jay