I am facing a difficult decision now. I need to know if I should continue trading futures.
1. my cost of capital is 10%
I lend away my money at 10% to other business. I borrow from stock brokers at 10%
2. my stock performace is between 20% to 60% a year. over 3 years.
3. I start trading futures 6 weeks ago. Earned 130% in the first 4 weeks, then lost half of the gain in the other 2 weeks. In the market I trade, there is No STOP Loss setup. Market is close for 2 hours during lunch time. There is no Level 2. There is no GoodUntilCancel orders.
So basically, I must watch all contract personally and wish there is no event happen during the 2 hour lunch time. There was a market crash 2 days ago. I could not unload all of my contracts at my stop loss price, because I did not enter order fast enough by hands. I need to know if I should keep trading futures or I should stay with stocks. 50% gain a month is really nice, but I am not sure this performance is normal or I am just lucky because corn and copper just move one direction without currections recently. Future trading takes too much more energy than stock trading, because the leverage and more difficult to evaluate a future contract than a stock. One day, I am up $60K, the other day, I am off $50K. The up and downs are too quick and big too for me comparing stocks.
It costs me 2 hours a day on stocks to gain 20-40% a year, or 8 hours a day if I need to go for the extra 20%
It costs me 8 hours a day on futures and I feel sad, disappointed, even I am up 65% after 6 weeks.
So
1. my cost of capital is 10%
I lend away my money at 10% to other business. I borrow from stock brokers at 10%
2. my stock performace is between 20% to 60% a year. over 3 years.
3. I start trading futures 6 weeks ago. Earned 130% in the first 4 weeks, then lost half of the gain in the other 2 weeks. In the market I trade, there is No STOP Loss setup. Market is close for 2 hours during lunch time. There is no Level 2. There is no GoodUntilCancel orders.
So basically, I must watch all contract personally and wish there is no event happen during the 2 hour lunch time. There was a market crash 2 days ago. I could not unload all of my contracts at my stop loss price, because I did not enter order fast enough by hands. I need to know if I should keep trading futures or I should stay with stocks. 50% gain a month is really nice, but I am not sure this performance is normal or I am just lucky because corn and copper just move one direction without currections recently. Future trading takes too much more energy than stock trading, because the leverage and more difficult to evaluate a future contract than a stock. One day, I am up $60K, the other day, I am off $50K. The up and downs are too quick and big too for me comparing stocks.
It costs me 2 hours a day on stocks to gain 20-40% a year, or 8 hours a day if I need to go for the extra 20%
It costs me 8 hours a day on futures and I feel sad, disappointed, even I am up 65% after 6 weeks.
So
