What are the differences and similarities between commodity futures trading and US stock trading?
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What are the differences and similarities between commodity futures trading and US stock trading?
- Thread starter brian（FTG）
- Start date
One major advantage for me is the huge amount of active/high volume stocks compared to futures.
Even if it is an extremely boring market day in the ES, there is most likely some nice action in a few stocks.
I used to trade ES only, now i am trading stocks only. The exact same system but i went from 1 instrument and trading from the open to the close (because of the limited setups my system gave me), to trading 12 stocks for the first 90 minutes of the regular session.
Never looked back.
Even if it is an extremely boring market day in the ES, there is most likely some nice action in a few stocks.
I used to trade ES only, now i am trading stocks only. The exact same system but i went from 1 instrument and trading from the open to the close (because of the limited setups my system gave me), to trading 12 stocks for the first 90 minutes of the regular session.
Never looked back.
trading stocks you have an advantage. you need $30,000 to daytrade stock whereas futures, you can daytrade with less han $2000 which a high school kid can raise.
it's 'easier to make money in stocks' or some stocks. the SEC raised the pdt rule to restrict number of retail playrs people competing with market makers.
commodity prices dont double whereas stocks like nvax can triple in value in a month. for the 'market' to double, normally it would take 10 years to double if at all. stock are more 'volatile' commodity prices don't change. that is why forex has 100:5 margin and futures is about 10:1 margins. stock margin is 2:1 and for volatil stocks no margin. no margin in options too.
it's 'easier to make money in stocks' or some stocks. the SEC raised the pdt rule to restrict number of retail playrs people competing with market makers.
commodity prices dont double whereas stocks like nvax can triple in value in a month. for the 'market' to double, normally it would take 10 years to double if at all. stock are more 'volatile' commodity prices don't change. that is why forex has 100:5 margin and futures is about 10:1 margins. stock margin is 2:1 and for volatil stocks no margin. no margin in options too.
lolthe SEC raised the pdt rule to restrict number of retail playrs people competing with market makers.
lolcommodity prices dont double
lolstock are more 'volatile' commodity prices don't change.
lolno margin in options too.
it's 'easier to make money in stocks' or some stocks.
Yeah, sure it is...
Are you making the easy money?
If so, the easy money + natural compounding should have made you very rich or will make you very rich in under 2 years.
Depends on your strategy. Stocks theirs a huge selection all moving off news, earnings, hype. If you took a simple pullback trading strategy, might take awhile to find futures setups while you’d find multiple entries in stocks.
Wish I could find the article but it was a study of trend vs mean reverting across commodities, stocks, and forex. Forex and commodities tend to trend more as their pushed by more economic, political trends that take longer to change while stocks mean revert more.
For myself it’s stocks as I trade daily/weekly systems since I work full time and the leverage on futures and scaling is just a bit too much right now. Stocks provide more setups for myself as well.
Wish I could find the article but it was a study of trend vs mean reverting across commodities, stocks, and forex. Forex and commodities tend to trend more as their pushed by more economic, political trends that take longer to change while stocks mean revert more.
For myself it’s stocks as I trade daily/weekly systems since I work full time and the leverage on futures and scaling is just a bit too much right now. Stocks provide more setups for myself as well.
%%What are the differences and similarities between commodity futures trading and US stock trading?
Both trend well/LOL.
Commodity/ commmodity etfs are like futs/ can lose more, or make more.Stock etfs can pay a dividend. IF the feds tear gassed the mayor of Seattle + they did, all of the above can make money...……………………………………………………………………………………………………………….
IT can be a disadvantage for inverse etfs;
inverse etfs can never get a margin call.[If I was dumb enough to get in a mob in Seattle; I would trade none of the above]