I've been trading index futures for a year or so. I'll be moving to stocks in a few weeks when I begin work as a proprietary trader for an equities firm. Although I'll be trading a signal based model of the firm, I can also use my own discretion on my own ticket if needed. Anyone moved from futures to stocks? Easier? Tougher? Futures price action is very elegant in my eyes, moving from level to level, etc. Is it about the same for stocks? Successful stock daytraders.. do you focus on 2 or 3 stocks and trade those alone? Or do you work the longside on strong stocks (and vice versa for shorts) on an intraday basis, not knowing what you'll trade each day? What are some important distinctions I should be aware of? Thanks in advance.
I switched from futures to stocks and it helped quite a bit. I like fast momentum, so while the futes were great some days, I'd get chopped on the low volume days. I find with stocks there's always something in play that suits my style, it just requires constant screening to find them
nasdorq, thanks for the reply. ah, yes. constant screening throughout the day. without giving away too much, what are some of the things you screen for? unusual volume? highest % gainers/losers on the day?
the price action is harder to read on the futures. the price action is easier to read on stocks, mainly because theres not hundreds of players participating. hope that helps. When you are right on the futures, you are very right$$$$, when you are wrong , you are very wrong$$$. With better price action read on stocks,you are frequently more right$$$ with less$$$.
Stocks are not irritating like futures. If a stock is going up it goes up, it doesn't necessarily feel the need to change its mind three times before it finally continues in the indicated direction.
hey coolweb, futures were definitely tough for me, especially in the beginning. there are many fake outs, and traditional "higher highs, higher lows" and vice versa isn't enough to catch trends and ride waves. you really have to be deceptive and think about how people are gonna get tricked to survive. i'm looking forward to stocks then..