What to trade; individual stocks, forex, futures?

[Starspa]

So I'm a newbie, a wannabe, an OP (whatever that is), call me what you like, but I would like to day trade.

I thought stocks, so I built a powerhouse computer, designed and built an ergonomically inspired, stand up, sit down trading desk with four 4K monitors and studied for six months. I've read a lot, watched the internet gurus and their cult followers, I've lurked in many chat rooms and then I came across this one. Even though I know that I will be taken out behind the shed by a few, it appears to me that some of the wisest traders are here and freely offer their advice.

During the time I have been trying to gain knowledge on trading stocks, I have noticed that most, of who I would consider true professionals, including those on this forum, trade other instruments than Nasdaq stocks. I also found, while trying to find order flow software for stocks, that 99% of the available software was for futures, forex and options.

So I've Googled until my eyes were crossed without an answer; why do "Elite" traders trade other financial instruments instead of individual stocks?

P.S. I've posted my Pic because it has been proven that it is psychologically more difficult to be mean to a face than it is to an Avatar, LOL!

 

[rber]

its called leverage

 

[jinxu]

P.S. I've posted my Pic because it has been proven that it is psychologically more difficult to be mean to a face than it is to an Avatar, LOL!

You are handsome. Are you good with the ladies?

 

[Xela]

So I'm a newbie, a wannabe, an OP (whatever that is)

"OP" stands for "original poster" or "original post", in forums. So, yes: now you're that, too, since you just started a thread.

I would like to day trade.

Why daytrading in particular?

I'm not trying to challenge your perspective or to criticise it. I'm an intraday trader, myself, and it was my starting-point, too. But I'm interested in the (very!) different reasons people have for wanting to be daytraders, specifically. (And to be honest, I do think that very often they're based on some assumptions which aren't always quite valid!).

I thought stocks, so I built a powerhouse computer

Wow ... curious approach. Not something it would ever have occurred to me to do. I suspect that these days, "retail"/"independent" traders are extremely unlikely to need more than a standard, off-the-shelf computer.

Even though I know that I will be taken out behind the shed by a few

Ah, you've had a look around the forum, then? That's probably fair comment, I'm sorry to say. (I hope I won't be one of them!).

I have noticed that most, of who I would consider true professionals, including those on this forum, trade other instruments than Nasdaq stocks.

I'd guess that's true.

I'm not sure what it signifies (that's to say: I guess it signifies quite a few things about the preponderances among ET members, none of which is probably particularly relevant or interesting to your situation anyway?).

I've posted my Pic because it has been proven that it is psychologically more difficult to be mean to a face than it is to an Avatar, LOL!

Is that so? Yes, I suppose that makes sense. Not sure whether that was my reason for having done the same. Maybe so, perhaps subconsciously?

I think from my attempt to read between the lines of your post that you're predominantly interested in stocks? In which case I can't really help you anyway, because I know nothing about them (which also effectively excludes me from being able to describe their relative advantages and disadvantages when compared with the other trading instruments I do know about). So I must be posting mostly just to say "Welcome to EliteTrader"!

 

[nickynoes]

Its because of the leverage and lower margin requirements for day trading is more readily accessible for your average retail trader. Also the volume is better though it doesn’t matter much if you are trading aapl or the SPY as a retail trader.

 

[Starspa]

its called leverage

I get it, thanks!

 

[Starspa]

You are handsome. Are you good with the ladies?

LOL, I wish!

 

[Visaria]

u good with the men?

 

[Starspa]

"OP" stands for "original poster" or "original post", in forums. So, yes: now you're that, too, since you just started a thread.





Why daytrading in particular?

I'm not trying to challenge your perspective or to criticise it. I'm an intraday trader, myself, and it was my starting-point, too. But I'm interested in the (very!) different reasons people have for wanting to be daytraders, specifically. (And to be honest, I do think that very often they're based on some assumptions which aren't always quite valid!).

I chose to pursue becoming an intraday trader because it looked like something I would enjoy doing. I chose intraday because the types of stocks,

sometimes​

involved in this form of trading, are not of the quality that you would want to hold for more than 30 seconds, LOL.



Wow ... curious approach. Not something it would ever have occurred to me to do. I suspect that these days, "retail"/"independent" traders are extremely unlikely to need more than a standard, off-the-shelf computer.

I may have overbuilt a little, but I needed a video card and ram that could handle 4K monitors along live streaming of over thirty five different things at the same time.





Ah, you've had a look around the forum, then? That's probably fair comment, I'm sorry to say. (I hope I won't be one of them!).

No, not at all; you're straight to the point, blunt, but with a kind heart; the straight to the point, blunt, dudes with a razor aren't as gentle! LOL!!



I think from my attempt to read between the lines of your post that you're predominantly interested in stocks? In which case I can't really help you anyway, because I know nothing about them (which also effectively excludes me from being able to describe their relative advantages and disadvantages when compared with the other trading instruments I do know about). So I must be posting mostly just to say "Welcome to EliteTrader"!

I guess I was/am questioning what I am interested in. When I find such a large group of traders, whose posts make sense, but they, for the most part, do not trade individual stocks, I find myself questioning the direction I'm entering the murky swamp; so it's wondering about the alligators along with the FOMO!

 

[tomorton]

......why do "Elite" traders trade other financial instruments instead of individual stocks?.........

Partly its do with the higher leverage rates available forex trading plus the narrower spreads plus the infinite liquidity of forex compared to smallcaps. In % price change terms, forex pairs are much more stable than stocks. The also don't suffer from the depth of overnight gaps: strictly speaking forex doesn't have overnight gaps, just the weekend gap, but traders have overnight periods when they won't be monitoring trades. Stocks are much more susceptible to unexpected news - the FD sells some shares, a competitor company makes an acquisition, launch of a new product is delayed - the list is infinite. Betting on a stock is betting on a very small management team with competitors just across the street: betting on forex pairs is betting on an entire national economy and there is only one USD.

I can't understand any new trader taking on the burden and risk of day-trading but by now you must have an initial strategy in mind, possibly already tested? What's your initial trade plan?