Scientist,
I just wanted to chime in here to say I think you made some very good points both in specifics and in general.
It takes the ability to adapt and to be open to adjusting not only style, but trading vehicles to be fully competent in today's market.
If one limits themselves to a particular marketplace, or a particular time frame, or anything else, this is trading with a handicap.
You also mentioned that you did not have what you consider a strong understanding of order routing. While it is always good to know more than less, separating what is important from what is not is efficient. Yeah, a lot of us (myself included) have the series 55, which, in theory, means we have a greater than average understanding of routing for stocks. Still, this knowledge serves little use (except for knowing your rights and responsibilities in cases involving errors).
Like driving a car, or using a computer....knowing how the thing works isn't really critical to their use, as long as you know how to get out of it what it was designed to give you.
You also make an interesting point about liquidity, slippage, and competition regarding stocks as opposed to futures.
No matter how "shark infested" (to paraphrase you) the index futures markets are, there is opportunity for those who are patient and disciplined in any market. Remember....the weaklings in any "game" are those who THINK they know what they are doing, and are willing to learn by paying to play.
As far as stocks, which I personally prefer for reasons I will not get into here (but have mentioned in the past), there seems always to be opportunities. The universe of equities is huge, and special situations always arise. Trading the minis (for example, same for ETFs) is a different game. You are proven right or wrong immediately. With stocks, you may be right (or wrong) and not have the price movement confirm your decision immediately. Makes "scalping" (IMO) a different type of thing than in the futures. Yes, you can scalp stocks. No, I do not believe that it is something you can do in a matter of seconds like with the index futures.
"Scalping" stocks takes a bit more conviction. No one has perfect timing obviously. So in essence, I believe if your "scalp" of an equity goes against you initially (and in truth, because of spreads and commissions, all trades are against you initially anyway), compelling reasons for entering a trade should be strong enough to withstand a first move against you. Far different from scalping index futures.
All in all, I think your posts were fine food for thought for those who consider themselves "specialists" or "experts" in one type of trading. To me, this really just means they have found something they are comfortable with, and win or lose, they stay with it. Which would be fine if this was a result of real experience. But my belief is that in most cases it is more a matter of what they started with, and therefore have been trying to master just one "game". This is great for anyone who has been consistently successful at their "one game". But in truth, I believe it is more a matter of lack of experience (not a bad thing...just reality), or, the unwillingness to educate one's self in other approaches (this IS a bad thing).
Nothing is more expensive to a trader than a closed mind.
It costs nothing to learn other strategies and other markets. It is not necessary to "learn by losing" just to understand these "new" approaches. Yes, it may cost $ to acquire experience in them, but not to simply understand what they are about.
I have traded stocks, options, futures and done them in different environments and with different basic approaches as well as in different capacities (such as customer, market maker, prop, and pro). Yet still, even though I have been primarily trading equities for the past 9 years or so, the knowledge of other markets has only served me well. certainly NEVER was damaging to my trading.
Learn it all. I have mentioned many times that I think every trader who takes his or her profession seriously should study for (if not take) the series #3 exam. If they never trade a futures contract, it will still help in every other kind of trading imaginable.
Traders never stop being students. Unlike the video games you mentioned, trading cannot ever be "mastered". Sort of like golf.
But still, one must strive to understand what is out there. And even understanding the "WHY"s of what is out there can only help.
How many traders trade stocks and really only know they are something you can buy or sell that may go up or down or not move without knowing what they represent? Sadly, more than most of us would believe.
Series 7 may be a pain in the ass, but at least understanding the difference between equity and debt is knowledge that is essential to all traders. Yet amazingly, there are HUGE numbers of self - styled traders that do not have this most basic understanding. Yet they are trading e-minis, stocks, ETFs, ....name it.
Proof? Just the other day I read a thread about "investing in gold". Not futures, not gold stocks, but gold itself. This was proof enough for me that there are people who seriously need an education. Yet they participate in markets, lose money, and attribute it to poor market conditions, crooked specialists and market makers, and inefficient exchanges and ECNs.
You need to be a citizen to sit on a jury. But you are not required to know how many pennies to a dollar to be allowed to trade.
GET EDUCATED!!!
So back to the driving a car or using a computer analogy. You don't need to know the inner workings of camshafts, or serial ports. But you do need to know to drive on the right (correct) side of the road. You do need to know to be prepared for a drunk or inattentive driver that may run a stop sign and IMPACT YOU. You need to know the RULES OF THE ROAD! They are pretty simple, but essential to survival.
Peace,
RS
) ... wait ... wait ... get out.