How many of you started as investors in value stocks versus how many were seduced into futures/daytrading straight off?Why did you change.Are you disillusioned?
Well I do have a background in futures although subsequently I did quite a little bit on things to do with the stock market. Big dough accumulation for the smart researched operator IMO is index futures (ie DOW) as the quickest route. I play the DOW day trading. But the sheer volatility that can rip through all futures sometimes or is just there most of the time can really fu*k up even seasoned players let alone those amateurs who are always feeding into these markets in droves and who wrongly start to believe that they know what they are doing or believe that they will soon know what they are doing. As always, each to his own.
I started 13 years ago as a day-trader (it was a novel concept back then). Lost 55K that I did not have. Spend 3 years paying debt and learning. Still day trade now but very cautiously. Iron discipline and a trading plan!
Why do you use the term seduced? If you want to trade and dont have a large bankroll you dont have much choice. If youve only got 5 or 10 thousand dollars you are not going to make any money trading stocks. Futures/daytrading gives the small player a chance to move into the big time with a small startup base. Of course you can lose your ass in a hurry, too.
i started trading futures 6 years ago, made alot of money and then tried stocks. absolutely hated trading stocks and gave it up. I continue to only trade futures. I have a very narrow speciality. to trade futures sucessfully you have to have a good trading system or your rules, absolute discipline and no fear and the money your using has to have no value to you. then you can suceed at futures.
I'm rediscovering futures my self. A lot of stuff has changed since I was trading them through Lind-Waldock (1992 - 1995). I agree, if your strategy works for futures there is no reason to trade stocks.
switched to futures straight off after one month on stocks. Stocks not worth for me : more influenced by specific news, less leverage, more noise. Now it depends on your profile: if you are stressed by speed and don't like precision trading or have not much capital then futures is a sure way to lose. At least you lose so fast compared to stocks than you can also learn faster unless you are not able to make a come back .
I started investing in stocks 8-9 years ago and then was "seduced" by the futures market. And I was thrilled that I made $1000 a couple of times while having lunch in front of a screen--I had a job then and it was the big S&P contract when a point was $500 and no electronic trading. Then I blew up the account in one NDX trade, as could be expected. So I went back to stocks. Now, with ES, it is the perfect quick trading instrument. I trade stocks mostly for swings.