Is it easier to trade consistently for profits with futures than stocks?
- Thread starter helpme_please
- Start date
All your arguments are based on nothing solid. Plenty of stock traders have had a good year, shorting stocks is not riskier as it all depends what and how you do it.
Highly liquid futures are much more competitive. The more liquidity an instrument has, the more higher calibre traders it attracts. Billion dollar hedge funds don't fuss about micro/smallcap stocks unless it's for a takeover.
Highly liquid futures are much more competitive. The more liquidity an instrument has, the more higher calibre traders it attracts. Billion dollar hedge funds don't fuss about micro/smallcap stocks unless it's for a takeover.
You ask a question, but only want to hear that futures are better. If you truly wanted an answer, you would listen to both sides. And, I trade 100% s&p stocks, 70% short and 30% long most of the time. Up 40% this year, so it is possible.
I sincerely want to hear both sides of the story. I asked a question and gave my view on the issue.
Congratulations on your successful stock shorts. Good to hear that. It is an inspirational story on what can be done.
Why not trade the S&P500 futures since you are trading S&P stocks?
I sit in front of 6 screens for 6.5 hours a day, approx 230 days a year. If you want to set it and forget it, then futures may be your "option".
For example, when Trump made a comment about a trade deal with China yesterday and the market overreacted, I was there to take advantage, real time, with immediate results. No need to wait.
Robert Morse
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How did you do over the last 5 years with that ratio of L/S or do you evaluate that over time?
Everyday is different. I do not know what I am going to do until the markets set up. I am reactive, not proactive.
Most of the futures traders I personally know...they trade futures instead of stocks due to "tax advantages". Also, I personally know only a few that trade futures to get around the PDT rule on stocks...I've met a few like that over the recent years but more in the beginning when the markets first adopted the PDT rule for stocks.
Regardless to their reasons, I highly suggest you determine this on your own via taking your strategy and back testing it on stocks and then do the same via backtesting it on the futures. Keep in mind there have been many traders here at this forum that state for fact when they traded stocks...they traded stocks differently in comparison to when they traded futures.
Compare your results to determine which one outperforms the other via your trade strategy. If the results are close...now go talk to your tax accountant to determine which will allow you to keep most of your money "after" all costs/fees. In addition, there's a few that state they trade both stocks & futures. These particular trader have complained about the increased costs involved in doing such...more maintenance via having to manage two different brokers and a few in this category even need different charting vendors because (e.g. one for trading Eurex futures and another for trading U.S. stocks).
The above is what a serious trader will do determine which is suitable than the other but its not necessary for you to do if trading is just a hobby or academic pursuit.
wrbtrader
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It has to be easier to trade stocks than futures.
with futures if you hold on for an extra 5 minutes you might lose your money
with stocks you might hold your stock for 20 years before taking profits.
futures require that you be super precise in everything you do. no wiggle room for errors.
the fact that you ask the question in the opening statement of this thread about which is easier kind of indicates you are not ready for futures. Futures requires a very precision trading system. the futures trader is willing to do what might be very difficult. he is not looking for what is easy. Stocks can be easy. just ask your broker who will give you a long list of recommended stocks that you buy and hold for the next 20 years. sounds easy to me. the futures trader burns energy sitting all day processing every tick trade real time with no breaks for the bathroom. until after the market closes.
we wear absorbent diapers to pee in and change it after the market closes. HAHAHAHAHA. We also have a good sense of humor. hahaha.
REAL TRADERS eat Wheaties and trade Futures. hahaha. they call us Alpha Males!
with futures if you hold on for an extra 5 minutes you might lose your money
with stocks you might hold your stock for 20 years before taking profits.
futures require that you be super precise in everything you do. no wiggle room for errors.
the fact that you ask the question in the opening statement of this thread about which is easier kind of indicates you are not ready for futures. Futures requires a very precision trading system. the futures trader is willing to do what might be very difficult. he is not looking for what is easy. Stocks can be easy. just ask your broker who will give you a long list of recommended stocks that you buy and hold for the next 20 years. sounds easy to me. the futures trader burns energy sitting all day processing every tick trade real time with no breaks for the bathroom. until after the market closes.
we wear absorbent diapers to pee in and change it after the market closes. HAHAHAHAHA. We also have a good sense of humor. hahaha.
REAL TRADERS eat Wheaties and trade Futures. hahaha. they call us Alpha Males!
It methodology sounds like being over leveraged and trying to scalp, with the right funding stocks and futures can be identical.