There are many advantages to trading the futures over NYSE, most of which you have listed. I think for many stock traders the futures look deceptively friendly. In reality they can be very dangerous, particulalry if you use the available leverage. Methods like reading the specialist and opening only orders that NYSE traders routinely use are no help. I'd advise investing in some backtesting software and thoroughly evaluating your intended methodology to see how it does, paying close attention to optimal stop sizes and profit-taking approaches. If you are going to be doing 100 lots in the e-mini's, you might want to consider trading the big contract instead, as you will save big on commish. Slippage is a lot worse but it depends on how you trade as well.
Trading equities vs. ES/NQ'S
- Thread starter major cahones
- Start date
try not to scalp the mini's i think the best results will come if you have a defined system for your entry points, set a resonable stop loss, and set a defined tight trailing stop once the trade reaches your objective. i have mede the switch from options and equity to futures, and it definately requires more disipline, however, trading futures has been yielding higher profits as of late.
hope this helps a bit.
hope this helps a bit.
Hello,
Just my 2 cents worth. I completed my first week (starting tues) trading mini dow futures with IB. I am a stock trader of 17 years, but have attempted day trading only since 1998. Off and on with off an on success. No previous futures experience
ON FUTURES. All I have to say is WOW !!! This is "pure" trading. Instant fast orders on IB (I have T1) with that constant update in how your position is doing. NONE of the rationalizing of holding stocks (its down just a quarter, etc) is here. When you lose you KNOW it.
I became interested in futures because I am developing a daytrading system using lizardgizzards "envelope" from the days highs and lows. I desired to make ONE day trade per day in DIA per day. Did ok (up 4,000, 1000 sh) since early OCT. I would have been up more if I could learn NOT to rationalize small losses ... that turn into bigger ones. !!!
With the dow mini, I am looking at some short term trades (about 15 minutes) as well as using the overnights to get in and out with the above system. Gaps in DIA were frustrating. But I am REALLY sold on futures. ESPECIALLY since I only have to report ONE line on my taxes !!! This, along with the commissions, makes it, I think, a potential turning point for me.
12 trades 1 contract each up $735 this week. Account of $7200
Just my 2 cents worth. I completed my first week (starting tues) trading mini dow futures with IB. I am a stock trader of 17 years, but have attempted day trading only since 1998. Off and on with off an on success. No previous futures experience
ON FUTURES. All I have to say is WOW !!! This is "pure" trading. Instant fast orders on IB (I have T1) with that constant update in how your position is doing. NONE of the rationalizing of holding stocks (its down just a quarter, etc) is here. When you lose you KNOW it.
I became interested in futures because I am developing a daytrading system using lizardgizzards "envelope" from the days highs and lows. I desired to make ONE day trade per day in DIA per day. Did ok (up 4,000, 1000 sh) since early OCT. I would have been up more if I could learn NOT to rationalize small losses ... that turn into bigger ones. !!!
With the dow mini, I am looking at some short term trades (about 15 minutes) as well as using the overnights to get in and out with the above system. Gaps in DIA were frustrating. But I am REALLY sold on futures. ESPECIALLY since I only have to report ONE line on my taxes !!! This, along with the commissions, makes it, I think, a potential turning point for me.
12 trades 1 contract each up $735 this week. Account of $7200
silver, before everybody gets to tell you all the negative stuff, glad you're finding futures to your liking. I feel the same way.
Happy is the man who finds something he enjoys.
i started trading the e-mini's this week - same reaction as you silverware. fills are instant - no slippage,no specialist screwing with your order. i'm so used to trading stocks off the futures move - it's a much different ball game trading the indicator itself. been just playing around with them this week but i figure i can trade some for positions and some of my trades will be quick scalps. i've been able to scalp .5 to 1 pt in under a minute. we'll see how it goes but i like trading them so far.
Do you mean 1 point as in from 8533 to 8534? If you do, WOW
Although, I have to admit I did this with ONE contract accidentally and made $10.00 before commissions. GREAT FUN
What was NOT great fun was keeping a loser, cost me 400.00, but I will carry on. Just a thought on a strategy. Anticipate the gap between 5:00 eastern and the open at 9:15 pm. Last night the mini dow closed UNDER the dow by about 15 points. Natually gapped up and kept going during the night. Tonight I am short at 8558. we will see. Have an order to cover at 8535
Although, I have to admit I did this with ONE contract accidentally and made $10.00 before commissions. GREAT FUN
What was NOT great fun was keeping a loser, cost me 400.00, but I will carry on. Just a thought on a strategy. Anticipate the gap between 5:00 eastern and the open at 9:15 pm. Last night the mini dow closed UNDER the dow by about 15 points. Natually gapped up and kept going during the night. Tonight I am short at 8558. we will see. Have an order to cover at 8535
Before I get blasted for a asking a basic question, I have done searches on this, and havent really found an answer, so any help would be greatly appreciated.
From what everyone is saying, futures trading seems like a no brainer vs trading stocks in this environment.
1. no slippage due to bad fills
2. auto executions
3. rather than picking the wrong stock in the right market, or vice versa, you choose only one instrument and can focus on it entirely.
Not having to chase from stock to stock for opportunity or scan for charting opportunites across a universe of stocks, but not really knowing the stock, etc it seems more "manageable" trading the ES and NQ. This is my biggest problem, narrowing down my trading..
The only downside to futures seems like the volatility, but cant that be managed by starting out small (1contract) until you get in teh swing of it?
Please let me in on what I am missing, b/c it seems much more manageable to traade futures to me and I am thinking about switching over...
From what everyone is saying, futures trading seems like a no brainer vs trading stocks in this environment.
1. no slippage due to bad fills
2. auto executions
3. rather than picking the wrong stock in the right market, or vice versa, you choose only one instrument and can focus on it entirely.
Not having to chase from stock to stock for opportunity or scan for charting opportunites across a universe of stocks, but not really knowing the stock, etc it seems more "manageable" trading the ES and NQ. This is my biggest problem, narrowing down my trading..
The only downside to futures seems like the volatility, but cant that be managed by starting out small (1contract) until you get in teh swing of it?
Please let me in on what I am missing, b/c it seems much more manageable to traade futures to me and I am thinking about switching over...
