What is it about futures that make them harder than stocks?

Discussion in 'Trading' started by Audi_R8, Jun 10, 2009.

  1. JScott

    JScott

    I trade futures, not stocks . . . but can still recognize the point of view of successful stock traders.

    Most the replies to the OP’s question(s) have everything to do with trader behavior and psychology, not of much use imo – that’s newbies being newbies.

    For example, leverage itself does not make one harder over the other. If I’m making trades that have appropriate risk management, then there’s no difference at all. Last time I checked, if I risk $1000 in futures OR stocks, I lose $1000 if I’m wrong.

    Risking $1000 with a $5000 account just makes you a knucklehead, it doesn’t speak one bit about stocks vs futures.

    What my stock trader “friends” try to convince me of is that once you have your edge in trading and have a reliable positive expectancy, why would you only want to apply that to a handful of markets?

    Why wouldn’t you want hundreds of markets (ie, stocks) to pick from where the high probability trades can be found such that the inefficiencies you are exploiting exist in ten-fold?
     
    #51     Jun 14, 2009