You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Why does it seem that good traders go to futures market?
- Thread starter ortega
- Start date
Main reasons:
- Cheaper execution for an equivalent $ face value...
- More favorable tax treatment...
- No fucking around attempting to shift what would be size in the stockmarket... in the futures markets, even 20 contracts of ES (face value not far off $1million) is easy to shift, cos 20 cars is small fry in the world of futures...
Secondary reason:
- Laziness: got fed up with scanning for stocks plays... easier to just play one or two futures contracts all day long...
No wonder even lagging stocktrading firms such as Cybertrader are now making a futures offering...
- Cheaper execution for an equivalent $ face value...
- More favorable tax treatment...
- No fucking around attempting to shift what would be size in the stockmarket... in the futures markets, even 20 contracts of ES (face value not far off $1million) is easy to shift, cos 20 cars is small fry in the world of futures...
Secondary reason:
- Laziness: got fed up with scanning for stocks plays... easier to just play one or two futures contracts all day long...
No wonder even lagging stocktrading firms such as Cybertrader are now making a futures offering...
Quote from ortega:
I see that basically all mention of futures on this board are about ES. Do people mainly only trade the equity futures, or do some of you trade commodities, interest rate, etc?
Index futures are the most popular mainly because they are the most accessible (especially the e-mini index futures i.e. ES, NQ, YM), but many do also trade commodities futures, Bond futures, currencies futures, all manner of things. People also trade European instruments, Asian and many other markets around the world...
Best
Natalie
Quote from candletrader:
Secondary reason:
- Laziness: got fed up with scanning for stocks plays... easier to just play one or two futures contracts all day long...
No wonder even lagging stocktrading firms such as Cybertrader are now making a futures offering...
Yes!! Scanning stocks is f**king stupid. It drives me crazy. Once I tried futures I never look back.
I've always felt the advantage of trading stocks is that you have a bunch of different markets to choose from. There isn't an opportunity in every stock every day, but if i watch 100 stocks i can usually find a few decent opportunities daily.
If i just watched 1 stock, or 1 futures contract (i.e. spy) i wouldn't have nearly as many opportunities daily.
By the same logic, i would say a futures trader who just watches SPY and not 10 other futures markets would be limiting himself.
A person can only watch so many markets at once, but everyone should be able to handle watching at least 5-10 at once.
For that reason i don't understand why anyone would limit themselves to just trading S&p futures and nothing else. Perhaps some futures traders here could explain why they just trade 1 market. I would like to understand.
I'm mainly a stock trader, but a few times a month i might feel like i have a good edge in predicting where the s&p is going and i will play the SPY or DIA. Rest of the time i'm looking for sector/specific stock opportunities where i can get more of an edge.
If i just watched 1 stock, or 1 futures contract (i.e. spy) i wouldn't have nearly as many opportunities daily.
By the same logic, i would say a futures trader who just watches SPY and not 10 other futures markets would be limiting himself.
A person can only watch so many markets at once, but everyone should be able to handle watching at least 5-10 at once.
For that reason i don't understand why anyone would limit themselves to just trading S&p futures and nothing else. Perhaps some futures traders here could explain why they just trade 1 market. I would like to understand.
I'm mainly a stock trader, but a few times a month i might feel like i have a good edge in predicting where the s&p is going and i will play the SPY or DIA. Rest of the time i'm looking for sector/specific stock opportunities where i can get more of an edge.