Stocktologist,
My understanding is that the mini contracts on A/C/E are replacing the Mid Am and that the CBOT is shutting that exchange down.
I agree with you though that beginners need to trade the minis (with great caution) and I would also say that many pros (at least individual traders) are going to them as well because an electronic exchange is just fairer (or is the correct term "more fair"?). Contrary to the crying of pit traders, an open outcry is NOT the most efficient way to conduct a market. I read an article where a bunch of pit traders were changing careers and opening resturants and other businesses because they can't make it as "screen" traders. The fact is that any middlemen (excuse me, middlepeople) that are cut out, increase your bottom line, since you are not paying them too. But I'm getting off topic...
The fact is, that anyone thinking of changing from stocks to futures understand the risks involved of higher leverage, and the outside influences that affect prices (i.e. wars, OPEC, inflation, limit moves, etc.) depending on the commodity you choose to trade. While the Gulf War affected stock prices too, the added leverage in bonds, as Stocktologist's brother found out, caused him to lose more than his initial margin. Just as with stock fundamentals, the affect of these things will depend on your timeframe...the longer you hold, the more you need to beware of these things.
One thing anyone considering this can learn from all the posts of the pro futures traders like tntneo and tymjr (and I suggest you go back and read these guy's posts, by clicking on the number of posts under their names, you will learn a lot!) is that its NOT easier to make money than in stocks, only easier to trade (due to lack of downtick rule, liquidity, single routing, etc.). Remember, the best traders (and computers) in the world are trading futures, you are not up against grandma and her investment club...
But I must admit, if I were being booted from a stock broker as a pattern daytrader with less than 25k I would be looking at this option, since I love to trade and its the only thing I want to do. So for those in this position, commit to learning EVERYTHING you can before you make the jump. Treat it like you would if you could go back and start trading stocks again...think of all you've learned through your mistakes and what you would do over again if you could change the past (i.e. read more, test more, trade smaller, etc.) and then double that before putting on size in the futures. Even though the mechanics of trading are the same, there is still a new learning curve to deal with.
huby, the index futures do lock limit occasionally, but the limits come off in a short time frame, although I don't recall the exact amount (maybe 15 minutes or so), but this is fairly rare. The agricultural commodities are notorious for this, like lumber or soybeans, and can stay limit for days at a time in worse case scenarios. I don't recommend most traders to EVER trade these things...too illiquid at many times and there is a lot of information you can never know in time that is well known by farmers and large commercial interests, so you are at a huge disadvantage going in. Since I don't trade these things, I have never had to get out of a locked limit situation, so maybe someone else can help you there.
Best of luck,
Kirk
