Failed futures traders switching to equities

Discussion in 'Trading' started by ud4l, May 13, 2009.

  1. Right.

    90% of the people on this site automatically consider certain trading to be impossible if they themselves cannot do it.

    Also for the people who say futures trading is hard if you have the right method, time frame and psychology futures trading can be a walk in the park. I sit around 98% of the work day goofing around until my price alarm goes off. I make the trade and then close the position within a pre-determined amount of time.

    However LEARNING how to trade is a whole different story.
     
    #41     May 14, 2009
  2. The futures traders have made the most sense in their respones, I feel. An index is effectively a basket of stocks and therfore risk is reduced because it is not so easy to manipulate. If you put your indicators on the index, not the futures, then you'll also get a sounder reading of market behaviour.
    The problem is leverage. If you trade 100/200 shares of spy or dia for a month or two then you'll get the confidence to go on to the futures. Why have 30,000 bucks sitting around doing nothing in an account? Finally, in terms of style, I agree, go for the bigger moves. I only now trade in the afternoon, when all news data has been digested and I've got a few hours of price action to work from. You will definately find at least one opportunity in the last 3 hours that will pay well. Three hours work for $100-200 (1 ym contract). This is a good deal in my book.
     
    #42     May 14, 2009
  3. Pekelo

    Pekelo

    That is fine and irrelevant, I just explained how the math works.

    If one uses 1 contract for every 5 K, then his leverage is 1:9...
     
    #43     May 14, 2009
  4. NoDoji

    NoDoji

    Ahhh, picture perfect long setup: Double bottom followed by a higher low. Now what would that long position be worth at the end of that spike assuming a $1000K investment (I know nothing about Forex).
     
    #44     May 14, 2009
  5. WRONG AGAIN! Futures are negative sum. Take a look at the average futures traders transaction costs. EVERYBODY can theoretically lose.

    Your post is in fact, meaningless. Stick to equities.
     
    #45     May 14, 2009
  6. What happened on March 18 was a huge day. it may have killed some day traders but it was not a temporary move (since it was obviously sustained). Huge days happen in stocks too.

    [​IMG]
     
    #46     May 14, 2009
  7. Pinozi

    Pinozi

    Thats a 2 big figure move, so its $2000 USD per $100k EUR/USD traded. Most shops need 1% as margin so you do the maths on the return on margin on the trade.

    Im not sure but I think that was the day the Fed came out with the QE plans
     
    #47     May 14, 2009
  8. Pinozi

    Pinozi

    As far as what the OP is asking, trading is all about horses for courses. Each trading arena/market has its own characteristics, so its all about finding one that suits your own personality and allows you to exploit your edge.

    Remember that your not trading the market, your trading against other traders.
     
    #48     May 14, 2009
  9. Cutten

    Cutten

    I accept your bet. How much money do you have?
     
    #49     May 14, 2009
  10. Precisely, along with the FOMC statement. Not exactly an "out of nowhere" event, traders should expect huge moves from the FOMC statement release.
     
    #50     May 14, 2009