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It is a general strategy to trade an individual stock with the direction of the major indexes. As a beginning trader I assumed it was my job to analyze the futures markets then trade equities in the direction of the major intraday swings. Too often I have correctly traded with the intraday swings of the Dow/S&P only to find my stock move very little or in the opposite direction . I began to ask myself "Is this why some traders prefer futures over equities"? Doesnt it just make more sense to day-trade futures OR Index based ETF's such as the QQQQ rather than stocks? |
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You must know what's the leading index first. Sometimes is the dow, sometimes is NQ. I prefer when NQ leads the pack to trade QQQQ, but you can get good trades out of the Dow against the cubes. If you're trading a sigle stock out of the futures, is a recipe for disaster on the long run IMHO.
QQQQ has plenty of liquidity intraday and it's a lot cheaper than Spyder's.
Cheers