I been trading equities fora number of years now recently I been thinking of moving to futures, I would trading solely the emini at first.. Anyway I just wanted to get some people's opinions of the differences between the two products and do they think it is a good transition? thanks for any info..
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Futures vs Equity Trading
- Thread starter NJ1000
- Start date
Also if I made the switch I would be going to a small firm that is truly prop so I wouldnt be putting up any money I would undergo a training program for a few months before I went live then I would soley be trading the firm's money with no personal risk to me.. So if it didnt work out I can only switch back..
at any given time, some chart might have a good/profitable "setup"-whatever that is for you. equities offer a wider range of volatility.
that being said, futures are also very broad between commodity classes. and depending on your trading style, scalping a single instrument in any market condition could also be profitable.
that being said, futures are also very broad between commodity classes. and depending on your trading style, scalping a single instrument in any market condition could also be profitable.
from my pov futures trading offers a better bang-for-the-buck because of the leverage
which at $500 / contract ~ 500% = $12.50 / tick, $50 / point on the emini and several
other futures contracts
the virtual 24hr hour Globex market means there's opportunities for me to trade in the
afternoon and evening as well as the morning, living on the West coast that means i
can wake up at a reasonable hour and still be sure of sufficient trading opportunities
to meet my daily profit goals
which at $500 / contract ~ 500% = $12.50 / tick, $50 / point on the emini and several
other futures contracts
the virtual 24hr hour Globex market means there's opportunities for me to trade in the
afternoon and evening as well as the morning, living on the West coast that means i
can wake up at a reasonable hour and still be sure of sufficient trading opportunities
to meet my daily profit goals
Quote from NJ1000:
Also if I made the switch I would be going to a small firm that is truly prop so I wouldnt be putting up any money I would undergo a training program for a few months before I went live then I would soley be trading the firm's money with no personal risk to me.. So if it didnt work out I can only switch back..
I don't understand why you are switching ? If you can't make money in stocks, you sure aren't going to make money in emini's
Suggestions:
1) Avoid overleveraging. If you fail to follow this rule and position size beyond your mental capacity, you will have your head handed to you very quickly.
2) Know exactly how much you will devote to the account. Make sure it is money you can afford to lose. Take 20% of it and blow it all to get it out of your system. You will make mistakes. You will be frustrated. The instrument itself moves seemingly in random fashion. There are points in the stream that you can pull profits from. But realize, when you are starting out, you are either going to be lucky in not knowing what you are doing, or more likely to lose your stake. The latter is very common so be aware of it. It will be your price of education.
3) Add the other 80% in only after you have proven to yourself you can consistently pull money out the instrument. This may take at least a year for you to "get it". If you can remain flat or eek out a profit on the second year, you are progressing in the right direction.
4) Continuously look for edges to exploit. Focus on price action and what it is telling you. They are there but you have to put in a lot of screen time to see it. Do not think that you can walk up to your computer and use it as a virtual slot machine. You MUST treat this as a business if you are going to survive. If you are going to dabble, my strong suggestion is you are in it for the wrong reason.
5) Learn to play both sides of the instrument. Never have a strong bias heading into the trade.
6) If you find yourself trying to predict, you are lost. You must know and have done your homework.
7) Know everyday when economic reports are coming out (usually in the morning). Never be in a position before the release. They can be volatile. A 10 point ES move in 15 minutes can sting if you are leaning the wrong way.
8) Avoid overtrading and becoming addicted. Decide on the hours you will trade. Its a 24 hour instrument making it that much more easy to gamble. Keeping positions open has its risks. Trading in the overnight session is not recommended. Too little movement and more susceptive to get your stops hit. Avoid it.
9) Get proper sleep, eat right, and excercise. You will have to battle with your best everyday.
10) Know how to determine and measure volatility. This is very important for obvious reasons.
11) Sit down and write a set of trading rules. Be true to yourself and stick to them religiously. I can't emphasize this enough. In trading futures, there is little margin for error.
1) Avoid overleveraging. If you fail to follow this rule and position size beyond your mental capacity, you will have your head handed to you very quickly.
2) Know exactly how much you will devote to the account. Make sure it is money you can afford to lose. Take 20% of it and blow it all to get it out of your system. You will make mistakes. You will be frustrated. The instrument itself moves seemingly in random fashion. There are points in the stream that you can pull profits from. But realize, when you are starting out, you are either going to be lucky in not knowing what you are doing, or more likely to lose your stake. The latter is very common so be aware of it. It will be your price of education.
3) Add the other 80% in only after you have proven to yourself you can consistently pull money out the instrument. This may take at least a year for you to "get it". If you can remain flat or eek out a profit on the second year, you are progressing in the right direction.
4) Continuously look for edges to exploit. Focus on price action and what it is telling you. They are there but you have to put in a lot of screen time to see it. Do not think that you can walk up to your computer and use it as a virtual slot machine. You MUST treat this as a business if you are going to survive. If you are going to dabble, my strong suggestion is you are in it for the wrong reason.
5) Learn to play both sides of the instrument. Never have a strong bias heading into the trade.
6) If you find yourself trying to predict, you are lost. You must know and have done your homework.
7) Know everyday when economic reports are coming out (usually in the morning). Never be in a position before the release. They can be volatile. A 10 point ES move in 15 minutes can sting if you are leaning the wrong way.
8) Avoid overtrading and becoming addicted. Decide on the hours you will trade. Its a 24 hour instrument making it that much more easy to gamble. Keeping positions open has its risks. Trading in the overnight session is not recommended. Too little movement and more susceptive to get your stops hit. Avoid it.
9) Get proper sleep, eat right, and excercise. You will have to battle with your best everyday.
10) Know how to determine and measure volatility. This is very important for obvious reasons.
11) Sit down and write a set of trading rules. Be true to yourself and stick to them religiously. I can't emphasize this enough. In trading futures, there is little margin for error.
I have made money in stocks I just dont see the same things working for me that use to work and seem to have leveled out.. I feel this maybe my opportunity to trade another product, learn from some very successful people and hopefully take my trading to the next level.. There have been a couple of people on this board who were successful in stocks and switched to futures and were glad they have done it.. Im just looking for other peoples opinions.. especially people who have traded both products