Why Trade Futures?

Quote from ofthomas:

LOL.... give it a try... let's see where it gets filled... if there are no bids/offers at that level where your stop is... you will get filled wherever they exist at that point in time ... so in the example provided... if the cross moves $10 against you, and your stop was at -$1 and you are filled at -$5... you are in the hook for the loss where you get filled...
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The example stated Shoots, It didn't say Gapped.

I don't just try it, I employ it. I trade Forex spot and Futures with responsible leverage, proper risk Mgmt and I am adequately capitalized.

If I get stopped with slippage, that is part of trading, I accept it.

Your example isn't limited to just Forex, any major Black Swan Event can cause similar catastrophic losses.

Flash Crash hit my stops, there was considerable slippage, there wasn't annihilation of my account.

I wouldn't trade without emergency stops in place, nor do I hold positions over the weekend which aren't deep in the money. I exit and re-enter Sunday night.

Other than that, not much one can do. May as well quit trading.
 
so we are in the same page, I am not saying that stops dont work.. what I am saying is that they are not the best method to prevent damage... shoot up, gapped, running through... depending on how many orders, and their size, were resting at the level of the stop and whatever positions the dealing desk had based on the stops they saw on their books is what will determine if you even get filled and at what price...

otherwise... I am big on risk management and proper trade sizing, so I agree with everything else you said...

Quote from GoldenMember:

The example stated Shoots, It didn't say Gapped.

I don't just try it, I employ it. I trade Forex spot and Futures with responsible leverage, proper risk Mgmt and I am adequately capitalized.

If I get stopped with slippage, that is part of trading, I accept it.

Your example isn't limited to just Forex, any major Black Swan Event can cause similar catastrophic losses.

Flash Crash hit my stops, there was considerable slippage, there wasn't annihilation of my account.

I wouldn't trade without emergency stops in place, nor do I hold positions over the weekend which aren't deep in the money. I exit and re-enter Sunday night.

Other than that, not much one can do. May as well quit trading.
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Quote from ofthomas:

so we are in the same page, I am not saying that stops dont work.. what I am saying is that they are not the best method to prevent damage... shoot up, gapped, running through... depending on how many orders, and their size, were resting at the level of the stop and whatever positions the dealing desk had based on the stops they saw on their books is what will determine if you even get filled and at what price...

otherwise... I am big on risk management and proper trade sizing, so I agree with everything else you said...
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I don't disagree with you either. Stops alone are only a part of the equation. As I sense you are fully aware, there is so much more to trading than pushing the buy/sell button. In addition to what we both mentioned is diversifaction in non correlated instruments, hedging, etc...

I grant you, my initial comment "stops" was rather generic and simplistic. I was merely responding to the OMG statement.
 
I trade futures to delta hedge my positions. I don't trade futures outright. Plus they trade 'round the clock Monday through Friday. Helps me sleep better at night :)
 
Plus...if you know everything about corn soybeans and wheat and spent you life on the fields surveying crops estimating, working with weather forecasts why the earth would you trade some over-manipulated, hyped corporate piece of paper that has no, intrinsic value other than the other sap who pays you?? A lot of stocks people trade have no earnings!
Yes, most management would not crap on the common shares holders, and even preferred shares holders get the hind tit at times! So you trade Ag spreads and make money - year in year out..
 
Quote from irniger:

Currency trading in the cash market is much better. One can choose the leverage and the volatility is manageable plus no commissions or other fees. Plus 24h trading and the biggest market - 4 trillion/day. Many swing traders come from stocks via futures to forex and are very happy and profitable with it.

Felix
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But don't forget that the Forex market is unregulated and scammy!

Yes, it's great that you can set your own leverage, but you're still trading in an unregulated market with padded bids spreads and stop hunting.
 
I was always told, the futures market is well regulated - but apparently not all aspects of it. I lost badly with MFGlobal and PFG and have been charged with all kinds of fees by futures brokers.

Trading forex with trusted Swiss brokers - they have to have a bank licence - I never had problems. I get the entry and exit prices I set. There are good forex brokers in all countries - check them out with reviews in Google, Forex Peace Army and in this trustworthy Elitetrader.com and with trading buddies you might have.

Felix
 
Quote from irniger:

I was always told, the futures market is well regulated - but apparently not all aspects of it. I lost badly with MFGlobal and PFG and have been charged with all kinds of fees by futures brokers.

Trading forex with trusted Swiss brokers - they have to have a bank licence - I never had problems. I get the entry and exit prices I set. There are good forex brokers in all countries - check them out with reviews in Google, Forex Peace Army and in this trustworthy Elitetrader.com and with trading buddies you might have.

Felix
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Hi Felix,

What FX Swiss broker would you suggest?

Is it you on that pic,btw?

http://www.forexpeacearmyscam.net/?gclid=CLrTwOua3bQCFcl8cAod8l0APg

And who`s Julia?Looks familiar to me.
 
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