Stocks vs Futures - Traders Hideout | futures io social day trading
futures io futures trading


Stocks vs Futures
Updated: Views / Replies:2,826 / 13
Created: by UnderPar Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Stocks vs Futures

  #1 (permalink)
Elite Member
Burlington, VT
 
Futures Experience: Intermediate
Platform: IB
Favorite Futures: Stocks
 
UnderPar's Avatar
 
Posts: 17 since Jan 2012
Thanks: 7 given, 17 received

Stocks vs Futures

Having only traded equities with break-even success, I'm starting to get more interested in futures. I know most people will say futures are much more difficult and if you aren't successful with stocks you shouldn't try for futures.

This being said, and the fact that I still consider myself a beginner, I think my personality might be better adapted to trading futures...

Stocks present me with the following two issues:

1. There are so many stocks that I find myself bouncing around to whatever is moving or has some volatility.... and never truly learning how ONE stock behaves.

2. The fundamental aspect of stocks (analyst upgrades & downgrades / sector news / earnings / guidance) there is just so much to follow and even if I'm just tying to trade with a technical bias, these things all come into play.

I think with a quasi-add personality trading stocks is to my detriment and I would be better served only focusing one the behavior of ONE instrument and learning it.

Does this make any sense?

Has anyone had success with futures after not being very successful trading equities?

Obviously, I'd start with a slower moving instrument and bring all the risk management rules I have with me to the other side.

Thanks so much for the advice!

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post



Last edited by Big Mike; October 26th, 2013 at 05:18 AM.
 
  #3 (permalink)
Elite Member
desert CA
 
Futures Experience: Intermediate
Platform: NT7, TOS
Broker/Data: AMP/wCQG, TDA
Favorite Futures: CL,YM
 
Posts: 2,027 since Jul 2011
Thanks: 2,211 given, 1,551 received


Most of the traders here on futures.io (formerly BMT) imo are futures day traders. Futures like options are leveraged instruments so profits can be bigger however there are the risks of margin calls rules of which are set by your broker. What you say makes a good point. Even stocks fundamentally change their behavior over time. AAPL was a dud until Steve Jobs came back with the iPod. One can trade small like 100 shares on the SPX for daytrading, but then you might as well just trade 1 contract on the ES future. I've noticed the calls by Cramer or the crew at Fast Money don't really have a better win/loss ratio than average. Makes me feel like the brokers or fund managers are consistently making profits more from commission/fee/consulting/reporting and related business outside of the actual trading rather than the investors or traders themselves. You could check the futures.io (formerly BMT) journals. I think other than the futures only trading journals, there are a few stock trading journals, weekly options trading, and a thread on selling options on futures. Good luck.

Big Mike also has an intro to trading video here which compares trading instruments:
http://www.youtube.com/watch?v=kaCYCoD_Fak&feature=share&list=UUwsYypIPVkEIr6Rfc-cWIzw


Last edited by Cloudy; January 9th, 2013 at 01:58 AM.
Reply With Quote
 
  #4 (permalink)
Elite Member
wa/ usa
 
Futures Experience: Intermediate
Platform: schwab, metatrader, OEC,T4,TDameritrade
Favorite Futures: CL ES 6C 6E
 
Posts: 254 since Oct 2012
Thanks: 197 given, 438 received

Just my 2c - I trade both stocks and futures.

Futures -
Highly leveraged, single focus ( generally you can watch for expected release time of news-not saying its going to protect you from a black swan moment but its not like CCL is getting hit on earnings so RCL takes a hit with it or something). You can just watch one instrument and get skilled in that and make a decent living if you are good at it. E mini are pretty liquid and fluid during RTH. Downside is the high leverage. You can do downhill real fast if you are not careful. Trade pretty much 23.5/5 1/2 days except the weekend(barring the settlement break). No PDT rules and better tax treatment. Easier tax filing too.

Stocks: Only trade during market hours. Lower leverage, more to choose from(pro and con), Tax nightmare esp with new constantly changing rules. If you have a solid strategy thats on a slightly longer time frame than watching every tic its fairly easy to trade. Collect some dividends too if you are into that. Can trade on cruise control.

Reply With Quote
 
  #5 (permalink)
Trading Apprentice
San Francisco, California, United States
 
Futures Experience: Intermediate
Platform: Sierra Chart
Favorite Futures: ES
 
Posts: 7 since Aug 2012
Thanks: 1 given, 1 received

Select 2-5 high quality stocks and follow those

I know lots of people who narrow down to a few stocks of high quality companies. The stocks move in 10 + point swings and they have them well-covered without being overwhelmed.

One guy makes a living just trading Google. He knows EVERYTHING about Google.

Futures are challenging. If you go there, paper trade first and be prepared to possibly lose your whole account balance if you begin trading right away without a trading plan and without demo / sim-trading experience.

Good Luck!!

Fred

Reply With Quote
 
  #6 (permalink)
Trading for Profit
Munich, Germany
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: Equity Index Futures
 
Posts: 285 since Apr 2012
Thanks: 121 given, 116 received

Leverage

The comments on leverage and futures can be a bit misleading.

Yes, you can trade some futures contracts with a leverage of approx. 15:1 (or even more intraday), but you don't have to. I would assume that most consistently profitable traders don't make use of such high leverage.

Depending on the capitalization of your account you can trade them without any leverage or anything in between 1:1 and 15:1 (or more intraday).

Reply With Quote
 
  #7 (permalink)
Trading Apprentice
Canada
 
Futures Experience: Advanced
Platform: Ensign Soft
Favorite Futures: Russell 2000 and ES
 
Posts: 25 since Jun 2013
Thanks: 0 given, 8 received

leverage

Agree on last post about leverage.

It is up to you to use it or not.

If you daytrade ES(emini s&p 500 index futures) you can get a daytrading margin as low as $400 on a contract value of $81,250(currently @1625.00). We're talking about 200 to 1. Very few people can handle that kind of leverage on a daily basis and being consistent at winning.

15:1 is a bit uncomfortable for me

I tend to stick between 5:1 and 10:1

but we're all different, you'll see what's ok for you when you get there.

Too many "gurus" will show you in their demo videos to trade 10 ES contracts with only $5000 and of course only showing you winning trades. Inexperience + high leverage is an almost guaranteed economical disaster.

Reply With Quote
The following user says Thank You to bloopoop for this post:
 
  #8 (permalink)
Trading Apprentice
Canada
 
Futures Experience: Advanced
Platform: Ensign Soft
Favorite Futures: Russell 2000 and ES
 
Posts: 25 since Jun 2013
Thanks: 0 given, 8 received

daytrade

as well if you decide to daytrade futures, you will more than likely become very specialized choosing one or 2 instruments and you will get to know them inside and out.

I do not understand how people can manage to daytrade different stocks everyday and still be profitable(oh yes it ca be done), as it is already complicated enough to get to know intimately one or two future instruments.

Reply With Quote
 
  #9 (permalink)
Trading Apprentice
Canada
 
Futures Experience: Advanced
Platform: Ensign Soft
Favorite Futures: Russell 2000 and ES
 
Posts: 25 since Jun 2013
Thanks: 0 given, 8 received

Has anyone had success with futures after not being very successful trading equities?

to answer your question, yes that's me!

with stocks I was all over the place, did not like the fact things could take weeks to become profitable, did not like the fact of holding a position on weekends. I was not daytrading stocks. I discover daytrading with futures and wanted to do something different with stocks. I gave up a long time ago.

Reply With Quote
 
  #10 (permalink)
Trading Apprentice
Harrisburg PA/USA
 
Futures Experience: Master
Platform: TradeStation
Favorite Futures: Futures
 
Posts: 5 since Jun 2013
Thanks: 1 given, 11 received


As you can tell by my name, my preference is for the futures markets. I personally have found that it is easier to develop a trading plan for futures, whether you are trading one market such as the E-Mini S&P, or a diverse portfolio. I also like the fact that news relating to futures markets tends to be more transparent. In stocks, you may not get any news for weeks, and then all of a sudden, a lousy earnings report or court ruling, and bam, the stock is down 20% or more. In futures markets, you generally get a steady drumbeat of news in most markets, so there are fewer surprises.

Just my two cents for now.

Reply With Quote

Reply



futures io > > > Stocks vs Futures

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Infinity Futures TransAct Futures Anyone Had Similar Repetitive Issues? J Boca Reviews of Brokers and Data Feeds 5 March 2nd, 2015 03:17 AM
SC custom studies based on "Cybernetic Analysis of Stocks and Futures" by John Ehlers slickiam Sierra Chart 2 September 5th, 2013 04:37 AM
Rankings for Strong and Weak Stocks and Futures ab456 Traders Hideout 4 April 2nd, 2013 09:43 AM
Scalping costs in Forex vs Futures or Stocks Trankuility Traders Hideout 24 August 25th, 2012 05:30 PM
Which Broket for trading Stocks,Futures & FX with NT ? SMuhr Reviews of Brokers and Data Feeds 3 May 7th, 2010 07:06 AM


All times are GMT -4. The time now is 06:50 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-13 in 0.15 seconds with 19 queries on phoenix via your IP 54.90.92.204