I am fairly new to futures but have a lot of experience with trading stocks, any recommendations to a new futures trader. The futures trading leverage seems to more profitable with a low investment. Stocks cost a lot with low return unless you're invested for a lengthy time or buy a crap ton of shares on a big move, like 10k shares or so. I am looking to trade futures as my primary trading, and want to know what everyone does when picking nitch, a news, commodity, financial? I am really good with tech analysis and understand patterns, supports resistance, so I dont really need help with any of that, just more so, what do you think I am missing? TIA for all the recommendations. Commodity futures financial futures.
If I were starting out today, I would focus on Futures too. Don't assume "leverage seems to more profitable with a low investment," leverage works both ways. More leverage, more risk. Start slow, nothing wrong with 1 lots or starting with smaller contract sizes.
I am getting some good results trading equity index futures (ES, NQ and YM) and finding opportunities to take advantage of their upward bias with a holding period of 1 to 10 days. Good luck!
Considering the large price swings we've been seeing for the last year or so, and especially with this week coming up, consider that you have a distinct advantage over others before you as you start your new adventure: The e-micros. I would suggest you stick with those for now, and formulate your trading plan on those. The lessons on what you did wrong will be much less painful as your experience with them develops. Every TA and FA idea/influence/pattern that you see on the e-micros exactly matches the e-minis. They move in lock-step. (This applies to the equity micros and gold. I don't have any experience with the micro currency futures, so that may not apply to them.) Welcome to futures!
Find a way - any way, towards consistency. That should be your primary goal. I would also advise you to study highly correlated markets (positive or negative) to the futures products you are interested in. Look for correlations > 90% over at least a year OTR. Don’t get too obsessed with “seasonal tendencies” - a good indicator package will be more reliable IMO. I wish you good fortune !
I suggest that you become more open-minded about your strengths and weaknesses. Knowing something theoretically and applying it with skin in the game is a different story.
If your experience is based on equities (stock) it would be best if you first gain some experience with equity index futures. By the time you understand the quirks of futures you could investigate other asset classes, such as agriculture, metals, forex or oil futures. And start with futures that have a small leverage as that may protect you during the first mistakes that are bound to happen. The micro futures are a good starting point.
I traded ES futures and options in the past..as well as stocks..made some money..lost some money..stopped trading altogether due to personal reasons..just returning now trading the ES today is not like trading the ES pre 2007 crash..as always..when you get a big dip in the markets..either tax cuts or regulations will be eased to boost trading..it is like clockwork..just go back and do a bit of research with new times come new fads..the latest fad is now in full swing after changes in regulations and millions of $$ investment by the big banks and hedge fund gurus..black box trading is the "latest fad" what this means to the pleb trader..is..you have two options 1..you decide to try and scalp a few ticks with a view to risking a few ticks..but..before you decide on that route it is wise to look at how the algo trades affect the ES price movement..best way to see this is to watch the DOM from 14:59 to 15:01 Chicago time..and don't try and use the chart as the chart can't update fast enough to show the price movements 2. you decide to step back and let the big boys play around with OPM..paying themselves and their cronies handsome salaries and bonuses..wait for lady luck to show her pretty face..and jump on her as fast as you can..with a view to getting the best she has to offer..which..of course..is the hard bit I don't think things like Fibs and Elliot and Bollinger will make you money with index futures..but..maybe someone else does..just ask them to show you the results before you believe them definitely start with the MES..I would forget the other micros until you are happy with MES consistency..then..maybe look at the M2K personally..I would not touch the ES until I am able to make some money every time I trade the MES..which is the plan that I am working on at this moment..no hurry..the markets are not going anywhere!
I am looking to trade futures as my primary trading, and want to know what everyone does when picking nitch, a piece of news, commodity, financial? I am really good with tech analysis and understand patterns, supports resistance,
Then follow a small number of unrelated symbols and get to know them well enough that when you get a buy/sell signal you can act without thinking about it and know the size and risk of each contract. E.g. ES and or NQ GC CL one or 2 FX pairs one or two ag symbols like soybean or wheat. As each is generally uncorrelated you might get more signals in any one day vs waiting with one or one class of symbols like just stock indexes.