Looking to leave equities trading, what new markets to trade?

Quote from Bogan7:

Which are your favorite grain contracts and why?
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I like all of them, particularly because I like spreading them against each other. I watch Corn, Wheat, Soy, Oats, Soy Meal, Soy Oil every day.

Intra-month calendar spreads on Corn, Wheat, and Soy are very liquid. Soy Meal less so, Soy Oil even less so.

Corn is a very volatile, very liquid market these days. Soy is the runner up--with the latest planting intentions, it may be that no one plants Soy this year. If that's the case, Soy may skyrocket. The "fear factor" is causing pretty wild volatility.

Try 'em, I think you'll like 'em.
 
Quote from spyglass:

...I am more interested in what markets or products to trade. I want to spend a few months learning something new.

Any thoughts?
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http://www.traders.com/Documentation/FEEDbk_docs/Liquidity/FutLiq.html

At the above link is a comparison chart that list all the Futures trading instruments based upon liquidity.

That's an excellent list to keep you busy with for a few months and longer.

Next, you can then do further research via using ET search menu to see what traders are saying about a particular trading instrument from that list.

http://www.elitetrader.com/vb/search.php?s=

You should also visit other discussion forums outside of ET where traders are talking about those trading instruments.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 
I think the term "can't make it" is very subjective. There have been times that I have been very successful with equities and times that I can't seem to do anything right. I know the markets are always changing and one must adapt their style in order to continue to thrive. I have made some bad choices and have tried to increase my risk by taking larger positions and holding for a longer time period. Unfortunately this did not work for me.

What I am most interested in is learning about some new markets and instruments to trade. I have been stuck in equities for so many years that I have not looked at futures, currency, commodities, etc. I think I am missing out on opportunities in these markets. I want to learn something new.

I am contemplating getting out of this business, but I realise that my skills are very limited to "real world jobs." As I spend the next several months looking for a job I figured I would learn some new markets at the same time. That is why I am asking what are some good markets to trade.

Thanks,

JP









Quote from being:

I don't get it... if you can't deal with equities, you really can't deal with other new products (there is really nothing new). Equities have all sorts of trading styles (liquidity, volatility, all kinds of ETFs that mimic the "new" products you are seeking, etc), unless you are not looking hard enough.

Not trying to offend you, but you spend years trying to learn equlities, and you can't make it. What makes you think a couple month of learning new products would get you anywhere?
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You are right I did not manage my risk effectively as I tried to change strategies. I have learned a very expensive lesson.

That being said, I have been very effective at managing risk for the past 6-7 years. What I am really looking for is more knowledge in the markets outside of equities, and I am wondering what are some good markets to learn to trade?


Quote from being:

Like I said, I wasn't trying to offend him...

To me, learning is an ongoing process, you can't adapt, you die. For him to give up something he spends so much time in it, it's called being defeated, hence not making it. Just because this year, he doesn't make it, and he gives up everything he believes in... what does it say?

We are not allowed to critique what he did wrong... which I think it's the major reason why he's not making it this year, managing his risk. If I'm right about that, he's not going to make it long term by switching to new products.

Let's move on, and I could be totally wrong... just don't want to see him losing more money...
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Quote from FullyArticulate:

I like all of them, particularly because I like spreading them against each other. I watch Corn, Wheat, Soy, Oats, Soy Meal, Soy Oil every day.

Intra-month calendar spreads on Corn, Wheat, and Soy are very liquid. Soy Meal less so, Soy Oil even less so.

Corn is a very volatile, very liquid market these days. Soy is the runner up--with the latest planting intentions, it may be that no one plants Soy this year. If that's the case, Soy may skyrocket. The "fear factor" is causing pretty wild volatility.

Try 'em, I think you'll like 'em.
More...

Where/how do you trade these products?
 
Quote from NihabaAshi:

http://www.traders.com/Documentation/FEEDbk_docs/Liquidity/FutLiq.html

At the above link is a comparison chart that list all the Futures trading instruments based upon liquidity.

That's an excellent list to keep you busy with for a few months and longer.

Next, you can then do further research via using ET search menu to see what traders are saying about a particular trading instrument from that list.

http://www.elitetrader.com/vb/search.php?s=

You should also visit other discussion forums outside of ET where traders are talking about those trading instruments.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
More...

Thanks. I'll read the links.
 
Same thing happened to me, kinda'. Enjoyed profits 98, 99, 00,(who didn't) and then not so well during 01, 02, 03. 2004, 05, 06 decided to try the e-minis. 20k later and nowhere near having a clue, I went back to what I was doing to begin with. Been profitable every month this year.
My suggestion. Take a break over the summer and then get back to the basics you had to begin with. Not saying you can't learn the e-minis, just sharing my experience. They made no sense to me. Good luck!
 
Quote from spyglass:

You are right I did not manage my risk effectively as I tried to change strategies. I have learned a very expensive lesson.

That being said, I have been very effective at managing risk for the past 6-7 years. What I am really looking for is more knowledge in the markets outside of equities, and I am wondering what are some good markets to learn to trade?
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I would encourage you. In many ways stocks are not the ideal day trading vehicle, and it seems the exchanges intend to rig the game even more against us. It's a tough business and a time-intensive one with all the stuff you have to follow.

Futures by contrast allow you to follow one market. The hot markets now are the energy complex, but it changes. Grains are also hot. The stock index futures are appealing but tough markets to trade. The interest rate markets are also very liquid.

Futures have a reputation for being risky, but the actual volatility of futures markets is less than individual stocks. It's the huge leverage that is available that makes them risky, but no one is forcing you to use high leverage.

Do some research, learn the ropes, open an IB account and start trading one lots.
 
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