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Old 02-09-2007, 11:04 PM
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Re: Why traders prefer equities over futures?

I tend to see the situation as being:

a) The stock market is much more publicised in the media. The public is more familiar with them and has grown up with them. Here in Australia there's only one TV channel which features talks on futures contracts and thats primarily directed at farmers!

b) People feel more comfortable trading rumours. In stocks news and company announcements play a gigantic role in how you trade stocks (this could apply to commodity futures as well but most ppl here seem to trade financial futures where the markets are quite different).

Soul, i've followed your posts for a long time and I agree whole heartedly with you about price action being king and not relying too much on indicators. I think that yes you can take the strategies you have in financial futures markets and apply them to stock trading however as mentioned earlier you do need to account for the more 'human' aspect of stock trading i.e news and sentiment. Market profiling does work for stocks as well because a stock just like a future is a commodity like any other and we as consumers relate to it in terms of its "value".

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