Best way to start trading Futures?

P

paulr

Looking for some advice here as to the best way to get started trading Futures for an experienced stock trader.

Which futures are best to start with and what is the recommended learning route from those of you who have done it?

Any books or courses that are worthwhile?

What are some of the classic mistakes to avoid?

Thanks!
 
Quote from paulr:

Looking for some advice here as to the best way to get started trading Futures for an experienced stock trader.

Which futures are best to start with and what is the recommended learning route from those of you who have done it?
More...

Stock or commodIty futures(or both)? What time frame do you trade on?
 
A question I would ask you first is 'what is your trading style?'

By that I mean are you a scalper, swingtrader, positions? Trend, counter-trend, range, range beakout? Do you trade stox like DD which take a long time to do anything, or IBM, KLAC, and COST which move around pretty well?

I ask because the predominant "futures" traders here, at least that post, focus on the ES and NQ, I would venture a guess that 99% are daytraders of some sort with these instruments.

There has been some recent, albeit short-lived interest in the grains and other commodity futures. These are more suited for trend and overnite trading.

:)
 
I am mostly a daytrader but I will swing positions over 1 or 2 days.

Quote from inandlong:

A question I would ask you first is 'what is your trading style?'

By that I mean are you a scalper, swingtrader, positions? Trend, counter-trend, range, range beakout? Do you trade stox like DD which take a long time to do anything, or IBM, KLAC, and COST which move around pretty well?

I ask because the predominant "futures" traders here, at least that post, focus on the ES and NQ, I would venture a guess that 99% are daytraders of some sort with these instruments.

There has been some recent, albeit short-lived interest in the grains and other commodity futures. These are more suited for trend and overnite trading.

:)
More...
 
Paul,

Try out a couple of the simulators out their and get a feel fro the way Futures work. We offer a Free trial! Pats and TT have them as well.

I really like the Interest Rate markets as a good place to start. If you are used to Volatility and manged well with it: I like the 30 year or 10 year bonb futures to start. The BUnd on Eurex is very technical and has very good liquidity. Try these on a Trainer along with the Minis and get a feel for them before you even think about trading with your cash.

Good Luck!




Quote from paulr:

Looking for some advice here as to the best way to get started trading Futures for an experienced stock trader.

Which futures are best to start with and what is the recommended learning route from those of you who have done it?

Any books or courses that are worthwhile?

What are some of the classic mistakes to avoid?

Thanks!
More...
 
Quote from paulr:

I am mostly a daytrader but I will swing positions over 1 or 2 days.
More...

Great! The hours of trading you are used to are at least 9:30-4:00 EST. The ag sector, ie., meats and grains, trade fewer hours, are less liquid, and offer greater risk. But they are not all that good for daytrading.

Hands down the currencies and the index futures are the best intraday vehicles. The currencies have a rep for being very trendy. The index futures have a rep for being very liquid. Clearly the ES v SP is the place to start, or the NQ. Electronic entry is a beautiful thing.

All methods that work in stox work in the index futures. If you were successful in stox, there is no reason that you cannot apply the same methods to index futures.

:)
 
Quote from paulr:

I am mostly a daytrader but I will swing positions over 1 or 2 days.
More...

I would recommend paper trading ES & NQ. Then progress SLOWLY into 1 contract. Just take it slow and manage the risk and leverage prudently and you will be okay.

Oh, make sure you find a good broker. I don't think you can go wrong with IB or Advanced Futures.
 
Don't paper trade anything to start with.

If you are interested in ES, trade 100 shares of SPY. If you are interested in NQ, trade 100 shares of QQQ.

Once you are profitable doing that, move your size up. Once you are at 500 ES or 800 QQQ, paper trade the ES and NQ for a day. Start with 1 ES or 1 NQ the following day.

nitro
 
I have just submitted an account to IB for futures trading for their approval. I DT stocks with Datek 4 yrs. ago, and will begin with a 10K account. What subscription services are needed, i.e. Esignal etc. for data and charting? Thanks in advance for your help!
 
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