Failed futures traders switching to equities

[NeoRio1]

Quote from Turhovach:

I've been trading futures since 1994. In that time it's been my only job. I've paid off my house, car and motorcycle. I take fairly nice two week long vacations about four times a year and have no debt. Granted, its not a life of luxury, but to say that trading futures is for losers is one one of the most ridiculous statements one can make. Its been my experience that those making these kind of statements are usually those who can't trade futures worth a damn and therefore make the assumption that no else can either.

Right.

90% of the people on this site automatically consider certain trading to be impossible if they themselves cannot do it.

Also for the people who say futures trading is hard if you have the right method, time frame and psychology futures trading can be a walk in the park. I sit around 98% of the work day goofing around until my price alarm goes off. I make the trade and then close the position within a pre-determined amount of time.

However LEARNING how to trade is a whole different story.

 

[cap'ncod]

The futures traders have made the most sense in their respones, I feel. An index is effectively a basket of stocks and therfore risk is reduced because it is not so easy to manipulate. If you put your indicators on the index, not the futures, then you'll also get a sounder reading of market behaviour.
The problem is leverage. If you trade 100/200 shares of spy or dia for a month or two then you'll get the confidence to go on to the futures. Why have 30,000 bucks sitting around doing nothing in an account? Finally, in terms of style, I agree, go for the bigger moves. I only now trade in the afternoon, when all news data has been digested and I've got a few hours of price action to work from. You will definately find at least one opportunity in the last 3 hours that will pay well. Three hours work for $100-200 (1 ym contract). This is a good deal in my book.

 

[Pekelo]

Quote from IronFist:

What if someone doesn't have 45k to trade with?

That is fine and irrelevant, I just explained how the math works.

If one uses 1 contract for every 5 K, then his leverage is 1:9...

 

[NoDoji]

Quote from IronFist:

Forex also tends to have gigantic spikes out of nowhere.

Ahhh, picture perfect long setup: Double bottom followed by a higher low. Now what would that long position be worth at the end of that spike assuming a $1000K investment (I know nothing about Forex).

 

[ChkitOut]

Quote from plyka:

I'm not really sure what the PL thread is, but your post is meaningless. It lacks the most basic logic you can think of --- futures trading is a zero sum game. This obviously means that if some traders are losing then other traders are making money. The more people lose trading futures, the bigger the amount of money made by the fewer people making money. This is basic logic/math.

WRONG AGAIN! Futures are negative sum. Take a look at the average futures traders transaction costs. EVERYBODY can theoretically lose.

Your post is in fact, meaningless. Stick to equities.

 

[IShopAtPublix]

Quote from IronFist:

Forex also tends to have gigantic spikes out of nowhere.

What happened on March 18 was a huge day. it may have killed some day traders but it was not a temporary move (since it was obviously sustained). Huge days happen in stocks too.

 

[Pinozi]

Thats a 2 big figure move, so its $2000 USD per $100k EUR/USD traded. Most shops need 1% as margin so you do the maths on the return on margin on the trade.

Im not sure but I think that was the day the Fed came out with the QE plans

 

[Pinozi]

As far as what the OP is asking, trading is all about horses for courses. Each trading arena/market has its own characteristics, so its all about finding one that suits your own personality and allows you to exploit your edge.

Remember that your not trading the market, your trading against other traders.

 

[Cutten]

Quote from ChkitOut:

I don't want to turn this guys thread to mush but I would bet any amount of money that none of the responders are net profitable trading futures.

I accept your bet. How much money do you have?

 

[Trader KGB]

Quote from Pinozi:


Im not sure but I think that was the day the Fed came out with the QE plans

Precisely, along with the FOMC statement. Not exactly an "out of nowhere" event, traders should expect huge moves from the FOMC statement release.