Traders Laboratory - View Single Post - FUTURES is where it's at!
View Single Post
  #12 (permalink)  
Old 02-17-2007, 02:12 PM
ezduzzit's Avatar
ezduzzit ezduzzit is offline
ezduzzit has no status.

 
Join Date: Sep 2006
Posts: 90
Thanks: 0
Thanked 0 Times in 0 Posts
Re: FUTURES is where it's at!

No need to feel spooked Robert. Most often this is just people parroting back the reasons they were fed by various institutions and brokers with a vested interest in promoting certain trading instruments.

Regardless of the so-called advantages of one class of trading instruments over another, you need to simply trade what you decide is comfortable for you and that point cannot be over-emphasized. I assure you that one man's meat is still another man's potatoes just as the old cliche says (not to be sexist, that goes for the women out there too heh, heh.)

Some who have traded stocks grew tired of all the scanning and research, etc. and found the e-mini futures, which require far less of that type of activity, to be a blessing. Others have traded e-mini futures and found them too highly correlated to one another (for instance, when one is not moving it is often the case the others are not moving very well either, though that correlation only holds true for about 80% of the time or thereabouts.)

They then decide they want the freedom to go "where the action is" by sorting for better opportunities in a vast sea of individual stocks, etc. It kind of follows along the lines of the hot dog vendor who always sets up shop at one area of the biggest park in the city (depending on paying customers to hopefully come by regularly), versus the hot dog vendor who is smart enough to position his cart wherever events may be taking place in the park on any particular day.

The time to get a little spooked is when almost everyone is persuaded about the direction the market is going to take. You wil find, if you are in this business long enough, that widespread direction bias is often a clue to consider taking the other side or at least be aware of the opportunity that lies in that opposing direction. The big money professionals know exactly where the retail investor sentiment and bias on direction lies, in fact they often are at least partly responsible for having brought those less sophisticated parties to those beliefs. They absolutely delight in starting out a day in the anticipated direction for a few minutes, drawing in all the hopefuls and convincing them of the accuracy of their views, only to quickly snatch it all away by forcing the tide quickly as possible in the opposite direction.

Anyway, you seem to be doing a good job of taking your own counsel and making up your own mind about things and I heartily encourage you to continue on in that very same manner.

Happy Trading

Reply With Quote