whats the advantage

Discussion in 'Professional Trading' started by jmh, Sep 20, 2005.

  1. jmh

    jmh

    i am looking to get into trading. i have met with various firms. each firm trades something different or a different market. is there any advantage to trading NYSE versus NASDAQ, or futures/FX....etc.

    also could someone explain to me why one futures firm trades S&P stocks stictly off-hours, while others do not. is there some advantage there?
     
  2. Jack of All Trades - Master of None
     
  3. Price action is the same if you are gaming directional movements

    things such as opportunistic methods such as opening orders or some islnd routing to arca whatever, would be exchange specific.
     
  4. SteveD

    SteveD

    Anything other than equities for a new comer is simply gambling. You would have more fun in Vegas,

    You will lose your money.

    SteveD
     
  5. Agreed. Equities has the most resources available.
     
  6. dbell66

    dbell66

    Could the last two posters elaborate further please?

    thanks
     
  7. I'll help (but remember, some CAN make money at anything, but this is a game of numbers and probabilities, we like high probability trading) :

    1. Futures are a "leading indicator" - stocks follow...watch futures, trade stocks...keep it simple.

    2. Options all trade within a penny or two of fair value when you consider the 3 way conversion (long stock, long put, short call), so there is no "edge" - and the floor traders have at least a nickel spreadat all times.

    3. Forex...well...forex is forex, enough said.

    4. By becoming a "surrogate specialist" in a few stocks, you get to know how they act...you can keep track of all the fundamentals and technicals....make money like the NYSE has been doing for 200 years....and bring trading up to date with automation, pairs, M&A, etc.

    Seems to work for our groups.

    BTW...the Nasdaq is becoming better to trade since they are now adopting some of the listed trading rules, etc.

    All the best,

    Don