What is it about futures that make them harder than stocks?
- Thread starter Audi_R8
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Quote from Unit001:
Futures have the more sophisticated traders than stocks
Enter futures only if you are very smart guy
and only you know if you are
You're telling me all those less sophisticated traders gravitate to stocks, I believe its just the opposite actually.
That doesn't make sense from the standpoint that the smart ones are going to take the low hanging fruit first and cash out on stocks before going to futures.
C'mon dude, get real.
Enough with the stupid comments, does anybody with half a brain have any input?
Try trading Google at 90 to 1 leverage and report back to us. 1 ES contract is ~ $47,000 f but I don't know anybody who trades it at face value. To mean the main difference is the speed of the order flow that is so much different from stocks. Once the programs fire in ES, all hell breaks loose from the fear and greed of other traders. Even if you are trading with higher margins, you can find ES 10% against you in seconds versus a stock that can go all day and only lose 1 or 2 % if you are wrong.
Most future traders fail due to lack of discipline. There is no room for error when trading with the best of the best.
I already told you, they aren't harder to trade. You just have to be patient and disciplined.
Futures trading tends to result in overtrading because there are only a few instruments to monitor. The trader gets bored, and starts taking a few trades that aren't ideal, and winds up in red ink.
Equity traders on the other hand, have thousands of choices. There is usually something moving somewhere, so the opportunities are greater and there is less boredom.
Just my theory.
Equity traders on the other hand, have thousands of choices. There is usually something moving somewhere, so the opportunities are greater and there is less boredom.
Just my theory.
Bingo. Absolutely 100% correct. There are relatively few profit opportunities in eminis intraday for anyone using any approach that has any edge known to man. 6.75 long hours of picking needles from haystacks.
It ain't the leverage. It's not the algos. Not at all. It is the individual expectations. 100 turns per day is merely someone without a true edge throwing s(tuff) at the wall hoping a little bit sticks somewhere. That's how a majority of emini traders of all account sizes approach the day.