Why daytrade stocks instead of futures?

Discussion in 'Trading' started by ADX_trader, Oct 14, 2002.

  1. I know it may be a stupid question. But I want to know why people daytrade stocks instead of futures. Is it really less risky than the futures?
  2. depends.
  3. i think it's cos people like the speedy executions of orders on stocks...
  4. :confused: The executions speed of emini is unbeatable!!!!
  5. yeah but people like the liquidity of stocks...
  6. why daytrade a leading indicator when I can daytrade something that follows the futures?

  7. rs7


    too many reasons to even begin to list.

    essentially, though, with stocks, you can judge individual issues on their own strengths and weaknesses. much more opportunity. and you can be long and short at the same time in different issues. you can trade different sectors. you can trade "pairs" you can use derivatives (yes with futures too, but few do). fundamentals come into play. relative strength, volume, news, earnings, a million factors. you can trade listed or otc., you can watch price action and size. the list of reasons is endless.

    it is not about just guessing (or "anticipating" if you like the word better) the direction of the market.

    then again, what do i know? i don't trade futures. or i haven't in a very very long time. i will occasionally trade etf's, which seem to be similar to trading futures. never got really enamored with them. maybe it is just all really about personal preference, and there is no right or wrong. or better or worse. just different strokes.

  8. "people like the liquidity in stocks" surely you jest. most futures markets are WAY more liquid than stocks. "people like the fast executions in stocks" dude, try futures if you want to see FAST. in my opinion, most day traders will switch to mostly futures within 7 years at the latest---- when the equity markets flatten.

    all the best,

    surf :)
  9. well maybe it's the lower commissions people like with stocks, or the favorable tax treatment...
  10. rs7


    I don't disagree with your contention in general. But there is NOTHING faster than an OTC fill on an ecn when you are on the right side of the market. So if you buy on downticks and sell on upticks, (as you should strive to), it is virtually instantaneous.
    #10     Oct 14, 2002