Can trade SPY or DIA etf first, these are available in smaller sizes, me too, always got problem missing out booming stocks, but if u just trade index, you can focus, but quite boring
Surely the greatest advantage of stocks over futures is that you get to choose your markets ie there are thousands of stocks to choose from compared to a relative handfull of futures markets. A top down approach can be adopted market -> sector -> stock or any number of variations. Compared to futures: market Of course the advantages of futures are low capital requirements, and no restrictions on shorting.
It's much easier to find a tradeable edge in stocks. In stocks, sometimes you are the only daytrader watching that stock, and it's just a large institutional buyer, a market maker, and you. The market maker is ripping off the buyer, you witness this, and you help buy a little in front of the buyer and scalp him for some easy money. Then you see the buyer finish off his order, and since the market maker helped the buyer over pay for his stock, he knows it's safe to run the stock back down, so you see this and go short. Trades ike that are my bread and butter, my living, and you just won't get those trades in liquid futures markets.
That's a stupid comment with no basis in reality. The typical retail trader - not all, but typical - trades futures because they simply don't have the capital for a solid equities trading program. That's certainly the case with the majority of futures traders on this board. Most of whom won't be here in 6 months. (Edit: Make that 2 months) A new trader is just as likely to get chewed up in either market. But given the leverage necessary to pull a decent return from futures trading, the odds of a quick blowup are much greater in futures...or in any leveraged derivatives.
A stock can in theory go bankrupt overnight, or it could open MUCH higher or lower than yesterday, so you stop loss would not work there. How is it with futures? And, can a futures contract go bakbrupt and not open overnight!? like a regular stock can..
Of course not. Stock index futures are derivatives of their underlying cash index... in the case of the ES, it's the 500 stocks of the SPX.
Very true. If your methodology is that poor that the goal is just to 'last' then trading a handful of shares of stock will in fact last longer than trading some futures contracts but the end result will be the same.
but can other types of futures, ( wheat, or metals, etc.. collapse overnight, duo extreme speculation or something like that
The commodity futures market can move lock limit down or up against your position. Perhaps for days in an extreme situation. That is likened to a collapse of sorts.