Anyone solely trade the SPY's or QQQQ?

Steve Tvardek

Steve Tvardek

I am curious if anyone of this site focuses on trading ETF's, primarily the SPY's and QQQQ's? I have been focused on only trading NYSE for the past 2+ years and have traded these ETFs before but have recently become interested in trading them once again.
Anyone have any comments, stories, or advice about trading these?
 
have you ever traded stock index futures ?

tax treatment of futures for active short term
traders is better , but for some people

it is better to ease into a position
using ETF's than futures ...

also some brokers / prop 's do not offer futures ...
 
Actually I havent traded stock index futures. I work at a prop firm and believe that they do not offer the ability to trade them unfortunately.
I'm just so used to trading equities, that etf's seem like an easier transition. The SPY's do about 52 million shares a day so I really like the liquidity aspect and I have a scalpers mentality, so im hoping to put something together.
Any suggestions?

Quote from SethArb:

have you ever traded stock index futures ?

tax treatment of futures for active short term
traders is better , but for some people

it is better to ease into a position
using ETF's than futures ...

also some brokers / prop 's do not offer futures ...
More...
 
Does anyone know who makes up the majority of volume on the SPY's and QQQQ? Is it black boxes battleing it out with each other? Since it seems that few here actually trade them exclusively, I am just curious about the major players involved.
Does anyone know?
 
Quote from Steve Tvardek:

Does anyone know who makes up the majority of volume on the SPY's and QQQQ? Is it black boxes battleing it out with each other? Since it seems that few here actually trade them exclusively, I am just curious about the major players involved.
Does anyone know?
More...

Yeah I think its black boxes and hedge funds making up the overwhelming majority of volume on the SPY and QQQQ. I started off trading mainly QQQQ the first three months and it was very frustrating - the false breakouts, whipsaws. I'm sure they are guys making money in those ETFs but I only know of one guy on the Trader PL thread that makes money of them, and he swing trades them. Most of the guys making the consistent and big money seem to trade whatever's moving.
 
I traded 100 shares of SPY for years to teach myself to trade. I also trade small lots of them or SPY options (recently born) occasionally to practice something new. I don't have much experience with QQQQ.

Having traded most of the forms of the S&P 500, I would say that trading SPY is a skill distinct from trading other forms of the index. It often moves faster than ES and the moves are exaggerated- ie its hard not to be late or trapped. I consider whatever I am doing successful when/if I can break even in it. Then I move back to what I usually trade.
 
Steve

Do to recent whipsaws on the ES, NQ and YM

I recently moved to the SPY QQQQ and DIA

I'm finding the same kind of action on them as the futures BUT the difference is I don't get slapped on the bad trades when I'm wrong and it has been a lot less stressful too without all that leverage working against me.

That being said, I'm also not making as much on the winners but I can live with that in these market conditions.
 
SPY's and QQQQ's are worthless to trade. Very little free money there IMHO. Much more free money in other stocks. Commodites, oils, and home stocks are where i see the most free money.
 
I have heard others say the same thing, about the SPY and QQQQ being worthless to trade but with all the volume they put up daily, it seems someone must be making money. I am sure they are much harder than the avg equity to trade, but my main motivation is that with the liquidity being so great that if I do figure out a feasible strategy, then I can size in and out at the right times. The problem I have with most of the NYSE issues that I trade is that its much easier to size in a position but when it comes time to get out, the liquidity isnt always there ( I strictly daytrade at this point, and mostly scalp). In essence, being right on a trade doesnt always mean I can capitalize.
 
Quote from Steve Tvardek:

I have heard others say the same thing, about the SPY and QQQQ being worthless to trade but with all the volume they put up daily, it seems someone must be making money. I am sure they are much harder than the avg equity to trade, but my main motivation is that with the liquidity being so great that if I do figure out a feasible strategy, then I can size in and out at the right times. The problem I have with most of the NYSE issues that I trade is that its much easier to size in a position but when it comes time to get out, the liquidity isnt always there ( I strictly daytrade at this point, and mostly scalp). In essence, being right on a trade doesnt always mean I can capitalize.
More...


SPY/QQQQ are for swing/position trades - not scalps. Especially these days of small intraday volatility with all the automated program trading.
 
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