Equity Traders making transition to futures trading

Discussion in 'Trading' started by Copernicus, Feb 16, 2004.

  1. interested to hear from traders that made the transition to trading futures....
  2. Hi Copernicus,

    Is there something specific your looking for or have questions about?

    Many many years ago...my spouse told me the following after I did a stock trade after I had not done one for 3 months when I stopped trading Stocks and concentrated on Futures (ES and NQ):

    Less stressful, more free time (less research work), less married to my positions, more optimistic, improved sleeping habits, less excuses about losses et cetera

    Thus, to my family it was a no-brainer but took about 6 months for me to get use to the fact that I was no longer a stock trader.

    Although I do hold some long term stock investments...I've not done a single stock trade since her comments.

    Last of all, based on what I've seen and not someones statistical research...

    traders that I knew that couldn't make consistent profits in Futures...

    didn't do the same in Stocks prior to switching to Futures.

    In fact, two of the best Futures traders I know...never traded stocks.

    P.S. I put more value on my family input than my own when I was too much of an emotional trader.

  3. to make serious money in anything one has to trade size.
    trading stocks I might be able to take few positions to spread that size around, with futures, e mini to be particlular, it must be a little different, and getting used to having on one really large position must take time i guess. i thought about it when i read someones post saying that he traded his first 100 lot.
    thankx for your input
  4. sjp


    To make serious money in futures you have to trade size? True-to a point. Its worth pointing out that that is also the quick route to working at your local pizza parlour. Try halving your size, working out some good spreads and making 1k a day for six months.

    People on this site have a size fixation. More winners less size, thats the key to your ferrari. If you win 8 times outta 10, THEN do some size. Small is pointless, Large is dangerous - win lots in the middle.

    Ferrari driving trader
  5. Hi Copernicus,

    Everybody has their own definition of what serious money is along with different goals.

    One of the most important things I learned about the Eminis and position size management is too know that not every day is a tradable day and not all trade signals merits a large position size.

    Also, depending upon ones money management rules and account size...

    To one trader that trades a large size...it means 5 contracts.

    To another it means 25 contracts...to another it means 100 contracts...to another it means 200 contracts...to another it means scaling into via several 50 lots until they've reached their establish position size...

    everybody is different.

    The trader you made reference to that traded 100 lot...hopefully he stayed within his money management rules.

    Going from Stocks to Futures to me implies someone has a good trade methodology in place and feel its more appropriate to exploit that methodology in the Futures market instead of the Stock market.

    I know a former stock trader that would take on 3-5 positions at the open and manage them throughtout the trading day.

    Now he's a futures trader and he scales into his establish position...starting with 5 contracts on whatever trade signal he gets...

    if its still profitable and he gets another trade signal...he'll add another 5 contracts...

    His money magement rules begins with 1 contract per 20k and doesn't allow him to go over 25 contracts based on his account size.

    Simply, he doesn't like going all in at once with 25 contracts even if its his best trade signal.

    Like I said...there's different ways to go about it...you just need to find one for yourself as you make the transition from stocks to futures...

    if that's the reason for this thread.

    If not and it was all about someone trading 100 lots...maybe its best to ask these questions in that thread.

    Also, you don't need to trade 100 lots to make a living at Futures, bunds or whatever.

    As sjp suggested...if you don't know how to manage your position nor respect the risk (money management)...

    quick route to working at your local pizza parlour.

  6. I just mentioned "size" in reference to trading e-mini as to the only one thing a trader might be trading. example, when i have a very good conviction that markets going down or up i might sell/buy 5-10 high beta stocks few ks each, if i was trading the e-mini i would be looking at sizing up in just the e mini. and that scenario might happen maybe once a month.
  7. sjp


    Face it copernicus, you just didnt think at all..... We accept your apology though. All is forgiven.

    Morally Righteous Trader