Why does it seem that good traders go to futures market?

[Trader5287]

There is a lot of futures liquidity somewhere on the globe nearly around the clock combined with reliable/economical trading platforms avlb that give me access and ability to trade in different currencies. I am my own US, European and Asian desk - just like a big bank. Also, I have met traders from all over the world with similar interests via the net which is a gas.

This was all unheard for individual traders just a short time ago. It's never been this wide open to so many.

Geo.

 

[Girlpower]

Quote from Trader5287:

There is a lot of futures liquidity somewhere on the globe nearly around the clock combined with reliable/economical trading platforms avlb that give me access and ability to trade in different currencies. I am my own US, European and Asian desk - just like a big bank. Also, I have met traders from all over the world with similar interests via the net which is a gas.

This was all unheard for individual traders just a short time ago. It's never been this wide open to so many.

Geo.

True, the last 5 years has seen so much become accessible without even leaving home. The biggest problem that is faced now is with the amount of choice available there is often a knowledge gap to overcome...

Best

Natalie

 

[T-REX]

Quote from Girlpower:



On the other hand how about the spikes from 'wrong' orders that later get broken by the exchange. both ES and YM had this relatively recently. 10,000 YM sold at market and then a couple of weeks later 50,000ES sold at market. In both cases people got hurt when trades near the bottom were broken by the exchange concerned when the institution cried mistake to the exchange.

Then there was the complete failure of Globex about 3 months ago, which resulted in a massive short squeeze qhile the exchange didn't come back online till after the close of day.

There are threads related to each of these occupancies.

No type of trading is without its risks or problems inherent in the type of contract or exchange...

Best regards

Natalie

Excellent point!
PFG Best busted those trades in the ESU3 when the order occurred. Actually it was 20,000 contracts shorted somewhere around 1000.25. The market fell like 10 points instantly. Under normal circumstances this is "supposed" to not happened but in situations of low volatility = sporadic hyperbolic moves.

fyi

 

[easyguru]

Quote from ortega:

It seems over the last few years of reading and learning about the markets and those who "claim" to be successful, many seem to either have been trading futures from the beginning or have shifted to futures later. I know the obvious advantage of being able to go short as easily as long may be one reason. Also, the leverage is greater, but of course that is a double-edged sword. Is there any other reason that great traders seem to be trading futures rather than equities. Or maybe my assumption is wrong from the beginning?

For the last six month I am transitioning in to commodities trading from stock trading and here are some of my reasons.
If you have a successful method the way to improve your return is by going in for other people money (OTM) or increase leverage.
Less number of markets to track. In stock market one of the key problem is reducing the trading universe while in futures you are tracking few markets.
The trends in futures are driven by fundamental demand supply factors which means a trend lasts till those factors are in equilibrium or change. Look at the live cattle move this year. While in stock there are too many factors which affect price. There are many counter trend move due to group moves, or adverse news about another company or sentiments.
Most of the stocks move as group so correlation between group is high. While in commodities you have independent moves.
It is easier to trade commodities using mechanical trend following systems.

 

[T-REX]

Quote from easyguru:


For the last six month I am transitioning in to commodities trading from stock trading and here are some of my reasons.
If you have a successful method the way to improve your return is by going in for other people money (OTM) or increase leverage.
Less number of markets to track. In stock market one of the key problem is reducing the trading universe while in futures you are tracking few markets.
The trends in futures are driven by fundamental demand supply factors which means a trend lasts till those factors are in equilibrium or change. Look at the live cattle move this year. While in stock there are too many factors which affect price. There are many counter trend move due to group moves, or adverse news about another company or sentiments.
Most of the stocks move as group so correlation between group is high. While in commodities you have independent moves.
It is easier to trade commodities using mechanical trend following systems.

I've traded Live Cattle Futures and your right it is alot of trendiness is this market. However, this market can also trade sideways for 3 months!!!

There is also some very reliable pre-market strategies that will work regardless if you have a trading system or not!!!