Why are bearish markets bad if there are future contracts?

Discussion in 'Trading' started by toli, Feb 22, 2023.

  1. Handle123

    Handle123

    Trading futures and options are the most risk cause of leverage, one should have very good and well tested IMHO to best understand you can lose your house, bank account, family and bankruptcy if you don't fully understand the risks. I have watched a few dumb greedy traders lose it all.

    On otherhand, you can do very well trading both with knowledge. Better one understands how to hedge futures and options lowers risk. Going short for me is better than uptrend. Much less false signals but all my trades starts counter trend.
     
    #51     Feb 23, 2023
  2. easymon1

    easymon1

    Does CET work out to about 6 hours ahead of New York time?
    Does your chart platform support alerts?
    If you want to know when price hits a particular level, can you set up an alert to trigger in your smartphone at work?
     
    #52     Feb 24, 2023
    semperfrosty likes this.
  3. toli

    toli

    Yeah, 6 hours ahead. I’m using TradingView, and I see it does have alerts.

    So your suggestion is, figure out which time there’s the most action, and specialize on a bunch of very regular price patterns that play out as expected more frequently than they don’t? Do you have any suggestions on how to identify those “active” times and which patterns to start with?
     
    #53     Feb 24, 2023
  4. easymon1

    easymon1

    Suggestions? Sure, but give yourself the weekend and you won't need em prolly, lol.

    So when it's 8:30 in NY... oftentimes there are news announcements. These often result in
    market imbalances which generate action, action being price action when imho better probability
    of tested setups to perform exists than otherwise is the case. Wanna see some examples?

    There are no trades marked on here at all so you can envision whatever system you want as an
    overlay. I'm partial to lines that draw themselves, lazy fok that I am, lol. Have a good wknd.

    link - https://www.elitetrader.com/et/threads/which-news-announcements-move-the-markets.23874/#post-5768241
     
    #54     Feb 24, 2023
    semperfrosty and toli like this.
  5. easymon1

    easymon1

  6. long

    long

    I didn't read all the comments so someone else might have mentioned this. Bear markets are bad because they decrease the value of everything. So the pool of available money is actually smaller. A short trader (futures or equities) can profit during a bear market but the economy as a whole is damaged.
     
    #56     Feb 25, 2023
    semperfrosty likes this.
  7. Zwaen

    Zwaen

    How can i gain $50 from shorting that - without leverage and 1 stock?
     
    Last edited: Mar 7, 2023
    #57     Mar 7, 2023
  8. SunTrader

    SunTrader

    Why $50?

    Anyway I'm too lazy to look back days ago what the details were, so unless you provide them again I have no way to comment further.
     
    #58     Mar 7, 2023
  9. Zwaen

    Zwaen



    Well you claim trading from 20 to 40 and from 40 to 20 is the same ROE. I would say half.
    Further you claim percentages don't matter, only absolute numbers. So I'm curiuous how you can make $50 from shorting from a price of 40. (No leverage, 1 stock and 1 trade).

    *and no joke the 40 is measured in e.g. pound
     
    Last edited: Mar 8, 2023
    #59     Mar 8, 2023
  10. SunTrader

    SunTrader

    I don't claim 20 to 40 is the same as 40 to 20. Math does. BTW where was use of margin mentioned - in beginning of discussion?

    I trade futures, if I trade long or short initial margin/maintenance margin are the same either direction. Long eMini @ 4000 and exit @ 4010 is the same profit/same ROE as if I went short @ 4000 and exited @ 3990. Same for other markets, excluding use of margin.
     
    #60     Mar 8, 2023
    Zwaen likes this.