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Old 09-26-2006, 11:05 PM
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Re: Why traders prefer equities over futures?

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Yes, I've been trading for more than 30 years. Electronic trading for the average trader didn't come into its own until the arrival of the internet.
As far as differences between stocks and futures, if I were to put up two live charts, one of an equity and another of a futures contracts, I doubt you could tell the difference. The real difference lies in the leverage you have. A $70000 futures contract for instance requires you to put up only $2000 to $3000 of capital compared to 50% for equities. That's a real difference.
I use alot of market profile in my market analysis and to understand balance from imbalance. I do not trade stocks but would like to know if the same market profile concept applies to the stock market? I trade the YM primarily and feel like the market is a complete auction. However, when I take a look at the stock market there seems to be alot more external things such as earnings, M&A, rumors, etc... I guess my question is: Can I apply the same market understanding/concept of the futures market into the stock market?

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