hi - i would just like to know if there are any traders out there that have successfully made the transition from trading stocks to trading futures, specifically the ES and NQ mini's. I have done reasonably well trading NYSE listed for a major prop firm for the past few years and am thinking of going the e-mini route for various reasons (i.e. bad fills, specialist holding orders, tax advantages, etc.).
Trading equities vs. ES/NQ'S
- Thread starter major cahones
- Start date
Try paper trading it at first and then draw your own conclusions.
Emini trading is great : liquid market, no uptick rules, fast moves.
However, it's more about scalping very quick moves according to me. momentum trading should be avoided at all prices and whipsaws are very frequent. However, one thing is sure, it is much easier to trade eminis that trackers.
Eminis are a good step forward for an experienced trader but could be dramatic for a novice. If you are experienced and can take the time to improve your knowledge then it's ok.
Emini trading is great : liquid market, no uptick rules, fast moves.
However, it's more about scalping very quick moves according to me. momentum trading should be avoided at all prices and whipsaws are very frequent. However, one thing is sure, it is much easier to trade eminis that trackers.
Eminis are a good step forward for an experienced trader but could be dramatic for a novice. If you are experienced and can take the time to improve your knowledge then it's ok.
Here's an interesting item from The Journal of Modern Methodology
"90% of all traders lose money."
and this
"10% of all traders are scalpers."
also interesting
"100% of all traders had at least a small paper profit at some point in most of their trades."
And finally
"These results are not conclusive however, because one trader is still short NQ from April of 2000. He could not be reached for comment, but according to his private staff which rolls him over every quarter* he is still doing fine."
*Not to be confused with his other private staff which rolls him over anytime he rings the little bell on the night stand by the bed on his yacht.
thanks nitro , i've found it's been harder and harder to get in and out with ANY size at all on listed. these pennies have just given the spec a license to steal. today at one point i thought i was covering to make .21 on LEH instead i lost about .15 on 10K shares. hopefully e-mini's are thick , i'll start small to learn but hopefully i'll do size 50, 100 lots.
cojones,
If you are going to be doing large size, I suggest that you look into a firm right at the MERC using a Globex machine ($2.40 round trip or less.) It will save you a lot in comissions.
Also, when you do this much size, it is nice to know what the other large players are doing...
nitro
The SP mini have the liquidity you need for that type of size. The Naz and Dow ($5) are thinner but still the best scalping tool out there. I was also a NySE trader through a prop firm and now use the mini and electronic fills. The frustration I now do not have is a major improvement to my over all trading plan and mental well being. I now use the equities as a swing trade and can deal with the slippage of 10 cents when I am trying to capture a buck and not 20 cents.
The NYSE and spec have really hurt their market. The "fair market" and direct + is a joke. 1x1 is shown and 100K goes off. I am really sold on the Mini market and my buying power has increased. slippage is no more than .25 on stops ($12) and commission is now 1/3 lower. Mini are only going to gain more attention. Add a squawk caller from th pit and the edge is even greater.
I have even had some big trades when I trade against The Asia market and when the European market opens. 24 hour access is great to have. Good luck.
The NYSE and spec have really hurt their market. The "fair market" and direct + is a joke. 1x1 is shown and 100K goes off. I am really sold on the Mini market and my buying power has increased. slippage is no more than .25 on stops ($12) and commission is now 1/3 lower. Mini are only going to gain more attention. Add a squawk caller from th pit and the edge is even greater.
I have even had some big trades when I trade against The Asia market and when the European market opens. 24 hour access is great to have. Good luck.