Its because most people care little about researching the thousands of stocks for opportunities - they will rather get fixated on one E-mini 5-minute bars, and think they are seeing better than the 1000s other traders. Throw in leverage.
Why are Futures and Forex more popular than stocks for short-term trading?
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Its because most people care little about researching the thousands of stocks for opportunities - they will rather get fixated on one E-mini 5-minute bars, and think they are seeing better than the 1000s other traders. Throw in leverage.
I only trade the 6E contract. I don't see any advantage in having thousands of different products to watch. My theory is concentrate on one product and learn it like the back of your hand. People may scoff at this idea but after a while you know what is "normal" for your product and what is unusual.
Why futures?
This article explains it for you
http://apexfutures.com/trading-tools/education/advantage-of-trading-futures/
Of course I would run to the bank if they lent me 100 mln. I would immediately take the 9:1 bet. If I lost I would declare personal bankruptcy. For some that would equate "ruin", and I chose 100mln because I am at a level where I would not borrow 10mln and risk it all with a chance of 10% of losing it.
By the way your English is so badly worded that I do not understand at all what you are trying to say. My point was exactly that risk of ruin and risk/reward are not linked whatsoever. And I posted a perfectly valid example.
By the way your English is so badly worded that I do not understand at all what you are trying to say. My point was exactly that risk of ruin and risk/reward are not linked whatsoever. And I posted a perfectly valid example.
Not if you can socialize losses but privatize gains. As long as the risk/reward is high enough it pays. That is essentially what every prop trader and hedge fund manager is doing. If they lose then they close a fund or the whole shop and open something else a year down the road. All that while their investors are sitting on their losses.
I was referring to independent traders.
You clearly live in a fantasy world. Ask 100 mio from the bank.... LOL
About my English. I checked it and there are no errors in what I wrote. The fact that you don't understand what I write shows that your IQ is at least 30 lower than mine. In that case people cannot communicate anymore.
How many languages do you speak? We can continue in my native language, but probably you will not understand anything at all. Which is not different from the actual situation...
Many stocks are completely uncorrelated or even negatively correlated providing huge advantages in diversification. It's amazing how under-appreciated proper diversification is. To my knowledge there are no futures or FX with auction orders, which means you are forced to have slippage and face relatively high minimum ticks.
For most traders who get into FX and futures, the attraction is purely about leverage.
Lol. Peace out mate. Just because you don't understand basic risk management does not mean you can sharp shoot. You did not get anything of what I said, not even the simplest point.
I do not entirely agree. Currency spreads can be incredibly tight with minimal execution slippage. That makes them much better vehicles to trade for someone with a knack for macro themes. But I fully agree with your points re diversification. Many retailers actually start out under water just by not diversifying.