trading e- minis vs trading equities

[hpex1]

I am a long time equity trader, every now and then I think I may be missing somthing by sticking with what works for me, so I would appreciate some feedback from you guys.

I have traded equities for over 15 years, I make money consistantly and basicly trade the same way I have for years with minor adjustments based on market condiitons, but primarily a scalper of listed stocks.

I am for the most part out of the loop when it comes to trading e - minis, but I hear more and more from people who seem to like the vehicle.

Any thoughts from you guys as far as how they compare as far as profitability, consistancy, executions and so on vs straight equity trading and if you guys would think it a wise or an unwise move for me to comnsider trading the contracts, would be appreciated.

Leverage is not an issue for me and would not be a consideration.

Thanks

 

[vladiator]

Originally posted by hpex1
I am a long time equity trader, every now and then I think I may be missing somthing by sticking with what works for me, so I would appreciate some feedback from you guys.

I have traded equities for over 15 years, I make money consistantly and basicly trade the same way I have for years with minor adjustments based on market condiitons, but primarily a scalper of listed stocks.

I am for the most part out of the loop when it comes to trading e - minis, but I hear more and more from people who seem to like the vehicle.

Any thoughts from you guys as far as how they compare as far as profitability, consistancy, executions and so on vs straight equity trading and if you guys would think it a wise or an unwise move for me to comnsider trading the contracts, would be appreciated.

Leverage is not an issue for me and would not be a consideration.

Thanks

... saw a study recently. I won't give out much info on it b/c one of the co-authors of it is also an ET member and he can do a better job of it. But basically it showed that only on-the-floor e-mini traders trade well (b/c they see the order flow), the off-the-floor traders are constantly taken advantage of. Just a thought to keep in mind when you consider taking the plunge.

 

[keltner]

Originally posted by vladiator


... saw a study recently. I won't give out much info on it b/c one of the co-authors of it is also an ET member and he can do a better job of it. But basically it showed that only on-the-floor e-mini traders trade well (b/c they see the order flow), the off-the-floor traders are constantly taken advantage of. Just a thought to keep in mind when you consider taking the plunge.

Excuse me, but there is no "floor". The e-minis are traded electronically, not in a pit.

 

[jem]

there are mini locals that sit around the outside of the pit traded big contract. I happened to be on the floor during the one of the first months of trading the mini. I talked to a local. He had what looked like a modified playstation controller and the would make a few quick movements with the controller and then signal something that I assume was an arb type move with the pit.

I was also told or read that some of the houses were ticked at the seating arrangement because the mini guys could look down at the desk and see the orders before the orders made it into the pit. Things may have changed in the last few years but probably not too much.

 

[bronks]

Originally posted by vladiator


... But basically it showed that only on-the-floor e-mini traders trade well (b/c they see the order flow), the off-the-floor traders are constantly taken advantage of...

This statement, coupled along with retail commissions and going at it alone (without the support of a professional work environment), has always nagged at me from the beginning. Trading in itself is difficult enough... nevermind being handicapped from the get go. Having never traded professionally, I can only ponder exactly how much of a head start the pro's have before I'm actually let out the gate.

 

[vulture]

Originally posted by jem
there are mini locals that sit around the outside of the pit traded big contract. I happened to be on the floor during the one of the first months of trading the mini. I talked to a local. He had what looked like a modified playstation controller and the would make a few quick movements with the controller and then signal something that I assume was an arb type move with the pit.

I was also told or read that some of the houses were ticked at the seating arrangement because the mini guys could look down at the desk and see the orders before the orders made it into the pit. Things may have changed in the last few years but probably not too much.

Back in September, 1998, I interviewed with one of the e-mini "locals"...He sat on the periphery of the pit and scalped all day long...He told me that prior to going electronic he had no chance in the pit...He was a short guy and was not a part of the political crowd at that time...But he was very profitable as an electronic local and felt that he had a significant edge doing what he was doing...I have re-visited the CME numerous times over the years and he has always been in his same spot...

 

[spprophet]

To say that only "on-the-floor" e-mini tarders trade well is absurd..

Im a long way from the floor and do quite well tarding the minis...

I feel the SP mini is THE ultimate trading vehicle in terms of liquidity... leverage... and execution...

Just my 2 cents

SPProphet@yahoo.com

 

[m_c_a98]

Originally posted by keltner



Excuse me, but there is no "floor". The e-minis are traded electronically, not in a pit.

us retail guys mean almost nothing at all to this market. It's ruled by the big money and the guys trading on the floor in Chicago. that doesn't mean we can't be successful however.

 

[vladiator]

Originally posted by jem
there are mini locals that sit around the outside of the pit traded big contract. I happened to be on the floor during the one of the first months of trading the mini. I talked to a local. He had what looked like a modified playstation controller and the would make a few quick movements with the controller and then signal something that I assume was an arb type move with the pit.

I was also told or read that some of the houses were ticked at the seating arrangement because the mini guys could look down at the desk and see the orders before the orders made it into the pit. Things may have changed in the last few years but probably not too much.

My point exactly. The traders of non-mini futures have access to the order flow and can then place informed trades in minis. So, keltner, wake up dude, those globex terminals are ON the floor.

 

[hybridmachine]

Originally posted by hpex1
I am a long time equity trader, every now and then I think I may be missing somthing by sticking with what works for me, so I would appreciate some feedback from you guys.

I have traded equities for over 15 years, I make money consistantly and basicly trade the same way I have for years with minor adjustments based on market condiitons, but primarily a scalper of listed stocks.

I am for the most part out of the loop when it comes to trading e - minis, but I hear more and more from people who seem to like the vehicle.

Any thoughts from you guys as far as how they compare as far as profitability, consistancy, executions and so on vs straight equity trading and if you guys would think it a wise or an unwise move for me to comnsider trading the contracts, would be appreciated.

Leverage is not an issue for me and would not be a consideration.

Thanks

The e-mini's are extremely liquid, and trade wonderfully fast on their electronic decks (Globex for S&P and Nasdaq e-minis, A/C/E for the dow e-mini) Floor traded listed stocks trade slower. If you are scalping off of very short time spans, you may find the e-mini's a better vehicle for you, worth a look anyhow.