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

spyglass · May 8, 2007

I have traded for seven years with different levels of profitability over the time period. There has been some good years but the last year has been very difficult for me. I have only traded equities, occasionally options.

I am done with equities, I have lost too much money this year by trying to size up and take bigger risk. Scalping wasn't making enough so I changed strategies, tried to take larger more concentrated positions with longer holding periods. Well, it didn't turn out to be profitable and I have lost a decent chunk of change.

Instead of critiquing what I did wrong, I am more interested in what markets or products to trade. I want to spend a few months learning something new.

Any thoughts?

El OchoCinco · May 8, 2007

If you could not make it in stocks, what makes you think you can do it in options or futures where leverage can be greater?

spyglass · May 8, 2007

Good question.

My thought is that all instruments trade differently, I am burned out on equities, my head is just not into it.

I am not saying that I will jump in and start trading some other instrument, I am just looking for ideas and experiences that others have had.

FullyArticulate · May 8, 2007

I like financials and commodities a whole lot. Fundamentals are actually meaningful, no dividends, surprise earnings warnings, etc.

CBOT grains have just gone electronic, and are super liquid.

Treasuries and Eurodollars are also super liquid electronically.

Take a hard look at Corn, Wheat, Oats, Soy, Soy Meal, Soy Oil, 10-year notes, 30-year bonds, and Eurodollars.

If your broker has a connection to ICE, you could trade the NYBOT softs as well.

acerbits · May 9, 2007

my favourite so far is ES and CL

Bogan7 · May 9, 2007

Quote from FullyArticulate:

I like financials and commodities a whole lot. Fundamentals are actually meaningful, no dividends, surprise earnings warnings, etc.

CBOT grains have just gone electronic, and are super liquid.

Treasuries and Eurodollars are also super liquid electronically.

Take a hard look at Corn, Wheat, Oats, Soy, Soy Meal, Soy Oil, 10-year notes, 30-year bonds, and Eurodollars.

If your broker has a connection to ICE, you could trade the NYBOT softs as well.

Which are your favorite grain contracts and why?

Cheers

BENG · May 9, 2007

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 (liqudity, 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?

OldTrader · May 9, 2007

Quote from BENG:

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?

In all fairness, I don't think you read his post. Sounded to me like he had some profitable years, that he was not able to make enough scalping THIS year, so he tried to use a different strategy which didn't work for him. Where in his post did you get the idea that he spent years "trying to learn" and "can't make it"?

OldTrader

BENG · May 9, 2007

Quote from OldTrader:

In all fairness, I don't think you read his post. Sounded to me like he had some profitable years, that he was not able to make enough scalping THIS year, so he tried to use a different strategy which didn't work for him. Where in his post did you get the idea that he spent years "trying to learn" and "can't make it"?

OldTrader

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...

OldTrader · May 9, 2007

Quote from BENG:

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?

Just a little perspective: 25 years ago gold was very volatile...an excellent day trading medium. That ended. You could still trade gold...but day trading it became nearly impossible unless you were on the floor.

Now, you could have kept trying to day trade gold. Or you could have changed to something else. Personally I favor the latter.

Now, I don't know this guy, and I don't day trade securities. I do most of my trading in futures. I haven't taken a pledge to trade one thing, and one thing only! LOL. I trade where I think I can make the most money...and one thing I can tell you for sure is that where this market is changes over the years.

OldTrader