Trading one Asset only

[mervyn]

I was not referring to optimised mechanical trading.

A good price action trader can trade almost any asset class with success. (apart from options, and illiquid penny stuff).

If a trader can trade QQQ but not SPY (or vice versa) , then it is a major red flag.

expected return is different, that’s why. one can learn for sure.

 

[poopy]

xela, teach him to trade the E6.

 

[Hari Seldon]

I’m seriously considering focusing only on QQQ. I trade options and I’ve done really well with QQQ. Not so great with SPY for whatever reason. This would be really focused for me instead of being all over the place with all the different stocks that I identify on a daily basis. Is anybody doing this? What have you experienced?

What you are encountering is the large % of market cap in QQQ that is represented by what is called the Mag 7.

Only 100 stocks in QQQ so those 7 affect QQQ more through their market caps being a higher % of the ETF than with the SPY ETF, which is 500 stocks.

So, actually your're pretty much trading those 7 stocks, more or less in QQQ and of course they have been on an upward trend, except for recently.

 

[charlotte_daily]

Focusing on one asset only can make you a master, but only on just that. What will you do when the market is not good for you to trade that?

 

[Lee-me]

I am all for just focusing and trading just one asset, I mean we all know a bunch of people who only work on gold and make awesome money from it, so why not do the same in sticks?
I do realize the mechanisms of both assets are different but the similarities are there too.

 

[ironchef]

While the two are similar, correlations within the index could be different and sector concentrations could mean different reactions to market events and macro hedging activity in one index could result in different volatility behaviors.

True. As is always the case, the devil is in the details.

Perhaps, OP does have a real edge compare to me. I just bet on the bull market.

 

[ironchef]

Focusing on one asset only can make you a master, but only on just that. What will you do when the market is not good for you to trade that?

You notice @destriero only trades butterflies?

Lebron James is a one trick pony?

 

[maxinger]

I’m seriously considering focusing only on QQQ. I trade options and I’ve done really well with QQQ. Not so great with SPY for whatever reason. This would be really focused for me instead of being all over the place with all the different stocks that I identify on a daily basis. Is anybody doing this? What have you experienced?

I day trade futures.

I started trading Russell 2000 ~ 2 decades ago.

As time went by, I added more and more futures.
Now I trade ~ 20 - 30 futures.

More futures - more trading opportunities.
Most importantly, you can use intermarket correlations.

You rarely see day traders trading one futures in the trading houses.

 

[mervyn]

I day trade futures.

I started trading Russell 2000 ~ 2 decades ago.

As time went by, I added more and more futures.
Now I trade ~ 20 - 30 futures.

More futures - more trading opportunities.
Most importantly, you can use intermarket correlations.

You rarely see day traders trading one futures in the trading houses.

rty is good, lesser margin than other majors.

 

[maxinger]

rty is good, lesser margin than other majors.

look at rty vs es vs NQ.

A few minutes ago, US index futures went down.
rty was the most trendy.
ES and NQ movement was rather choppy.