Better to day trade e-mini's, FOREX or stocks?

[Jayford]

4. insane leverage.. 100:1 or more

[/B]

Once you've been around awhile....

If you trade on this leverage, bye bye.

Eminis give you way more than enough to hang yourself.

Forex is for pros only imo.

Why do I say this?
Cause I am a pro, and I know all the games played. FX sucks people in cause they need little upfront. The massive spikes on a daily basis are not something to play with. Crushes 99%.

Think about it.

 

[PitchBlack]

Quote from Kar:

Assuming someone has the capital to trade either e-mini's, FOREX or stocks, which one is most profitable with lower risk of losing principal? Pros and cons?

I traded FOREX for years and Eminis also.

The difference between both: i know of several traders making money in Eminis; in the years i traded FOREX nobody i know survived.

 

[allenfx]

I don't know much about stocks.
I am interested but not finding too many free courses over the web.All i know is that in forex we study major pairs and major indicators (e.g NFP) compared to thousands of stocks analysis to take a decision

 

[cashmoney69]

Quote from Jayford:



Forex is for pros only imo.

Why do I say this?
Cause I am a pro, and I know all the games played. FX sucks people in cause they need little upfront. The massive spikes on a daily basis are not something to play with. Crushes 99%.

Think about it.

forex is for pros?...

how'd they get to that level?...experience. Trade one standard lot, and I dont see what the problem is. Risk management is the same.

 

[hajimow]

I have never traded forex. Traded Stocks for 11 years and Options for 6 years. I was burned by stocks at the beginnig and now I trade a mix of stocks and naked options and I am doing OK. I started to trade Emini and I did two successful trades and my 3rd trade was on Feb 27 that burned me big time. I am back now to stocks and options. I have no problem with liquidity in stocks that I am trading. Options are also becoming liquid by the new one cent increment. I might nab into emini options in six months but not now. S&P Emini either becomes boring or kills you.

 

[Jayford]

and gals...

This thread is WAY off topic. PM me and I will show you personally that It can work.

I am getting a little pissed at the equity guys telling me its not possible. I've been at it for 20 years.

..

 

[Trader KGB]

Quote from spike500:

in the years i traded FOREX nobody i know survived.

Out of curiosity, were those you traded FX with daytraders or position/swing traders?

Given the lack of volume information, terrible spreads, etc I could see how retail FX daytraders might be at a significant disadvantage to the pros/banks. However, from a swing trading perspective, certain pairs have a high propensity for finding trends (AUD.USD as one recent example). For this reason, I find FX suitable for swing trading, but for daytrading, the e-minis present a more level playing field than FX.

 

[Soon2Bgreat]

Quote from cashmoney69:



1. FX is very liquid, so no one person or company can manipulate price.

2. open 24hrs

3. Only a few major pairs to worry about compared to thousands of stocks

4. insane leverage.. 100:1 or more

5. no day trading rule

Just a few comments if i may,

1) I respectfully disagree...if anything prices are manipulated more.

2) Yes, but it's sometimes surprising how dead it can be during certain markets.

3) Yes, but arguably more factors to affect price, which may be more difficult to find info. on than US equities.

4) Yes, good thing imo.

5) Again, good thing.

My point is simply to be careful, what may seem like an advantage can often be a double edged sword. Fx is no worse/better, it just depends on your implementation of it imo.

Good luck.

 

[PitchBlack]

Quote from Trader KGB:

Out of curiosity, were those you traded FX with daytraders or position/swing traders?

Given the lack of volume information, terrible spreads, etc I could see how retail FX daytraders might be at a significant disadvantage to the pros/banks. However, from a swing trading perspective, certain pairs have a high propensity for finding trends (AUD.USD as one recent example). For this reason, I find FX suitable for swing trading, but for daytrading, the e-minis present a more level playing field than FX.

Daytrading spot.

 

[HoustonMark]

Quote from Kar:

Assuming someone has the capital to trade either e-mini's, FOREX or stocks, which one is most profitable with lower risk of losing principal? Pros and cons?

I didn't read the entire thread so some of this may have been covered.

Futures is the way to go IMHO for the following reasons:

Stock daytraders compared to futures traders:

1. Spend a lot of time doing homework (some 8000 possibilities out there)

2. File tax returns that are measured in pounds, not number of pages.

3. Pay more taxes on the same gains and have that pesky wash sale rule to contend with.

4. Can't short stocks as easily as I can short a futures contract (uptick rule).

5. Have a tendency to hang onto losers (they know it's coming back) until their trading account is chock full of dogs.

Those come to mind quickly...

Forex is OK but consider trading forex futures through a regulated exchange (CME) instead of spot through banks/brokers.

Hope it helps.

HM