Trade stocks,futures, or forex

Discussion in 'Trading' started by brokenmarkets, Dec 29, 2010.

  1. With $100,000 in capital. you can only choose either one.

    i choose trading stocks instead.

    forget futures and forex... futures and forex is for institutions who have over 5 million of capital.

    most retail futures,forex trade because they don't have the capital to trade stocks intra-day
  2. Maverick74


    You are asking a newbie question. Newbies often feel there is an "edge" in the selection of the product they are trading. The fact of the matter is, it really comes down to edge. You either have one or you don't. The product is pointless. BTW, almost all the futures and FX have ETF's now, so they can be traded as stocks regardless.

    What usually kills guys in futures and FX is leverage. Not the product itself. Trust me, you give stock guys super leverage and they blow out just as fast as futures guys.
  3. what are you talking about 'edge'.

    what would you choose you only have on choice.

    in prop firms there are traders who only trade stocks and traders who only trade futures and traders who only trade forex and traders who only trade options...with limited capital which would you allocated. or choose to trade? you have no choice to trade all three.

    stocks have better risk/reward and more trading opportunities.

    most seasoned traders and in my opinion would say stocks are better if you had to choose only one type to trade.

  4. Maverick74


    Well, at my prop firm we trade all three. So I guess I'm a bad example. And btw, more and more prop firms are allowing greater access to all products. But the your question is not a good one because the answer is it depends. We are in the middle of the bar none the greatest commodity bull ever. Stocks can't hold a candle to the price action right now in commodities. So commodities are absolutely the best place to be now. So that could be commodity ETF's, commodity futures or commodity options. Really doesn't matter. Next year that may change. It usually does. When the VIX is at 15 and commodities are going limit every other day, it's very difficult to make the case for stocks.
  5. and what securities is the most profitable or ROC for your firm.

  6. Maverick74


    I don't really understand the question.
  7. repeat:

    ROC: return on capital.

    what type of securities gives you the highest ROC?

    that is the metric real business look at return on capital.

  8. Maverick74


    That's not a very good way to look at prop trading. I'll try to answer by saying that most guys trade better with momentum. Whether that momentum is in commodities, currencies or stocks. So if one were only going to trade stocks, I would look for the highest momentum stocks. Momentum has a way of bailing guys out of bad trades and helping bad traders dig out of holes faster. And when a guy catches a run, nothing will build his bank account faster then momentum. But that is the thing, stocks as a group don't always have momentum. With the VIX at 17 or whatever, it requires unbelievable discipline and patience to make money with stocks because if you take a hit, it's going to take a long time to get it back.
  9. you have no choice you can only choose stocks,forex, or futures.
    what would you choose..

    traders working at firms don't have choice .

  10. momentum in futures and forex is down too.
    reaso momentum is down is fewer market participants....less volume.

    momenutum imo,,is down for stocks,futures, and forex.

    #10     Dec 29, 2010