If you’re reading this page it is probably for one reason - you are bored to tears with trading stocks! Understandable, but we shouldn’t be too hard on stocks since stock trading is where almost every veteran trader began his career before moving on to other trading instruments such as emini futures contracts.
Usually starting as a fundamental investor, searching for specific stocks in favorable sectors or buying on a “hot tip” given to us by a friend, we all begin somewhere and that starting point is almost always the stock market.
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Once we enter the market we undoubtedly become hooked although not in a reckless and gambling sort of way (there are exceptions and they don‘t last long), but in more of a analytical and rational sense, which turns us into students of the financial markets.
Falling In Love With The Markets
We grow to love the ebb and flow as bulls and bears fight it out each day. The successful veteran trader has learned profits are the result of trading well. He understands that profits are a byproduct of his skill and concentrates on developing a system that fits his personality and tolerance levels. And for most, it began with a simple stock purchase.
Once that first stock is purchased, one of three things is going to happen. 1)The investor is going to sell the stock at a profit or loss then walk away. 2) Continue to invest as a long term fundamental investor -concerned only with companies and the bottom line or they will become number three.
A life long adherent of technical analysis who could give two cents if a company goes bust or what geopolitical event is currently upsetting the world markets. Long or short ,the technical trader doesn’t care about anything except being on the correct side of the market and he does this with technical analysis.
After cutting their teeth on stock trading, many find it boring and labor intensive since stock trading requires hours of chart scanning to find potential stocks to trade. Liquidity and volatility can be an ever present problem for stock traders since stocks may trade sideways, with very little movement for days or weeks, even months. Eventually, some stock traders seek out a different approach to the market by utilizing a different financial instrument.
Lessons
Lesson one - the futures market is liquid enough for a trader to make profitable trades several times daily. Long or short, profitable trades can be executed in every daily session which is why index futures trading has exploded since their introduction in 1997.
Day trading is a popular method used by index future traders, with some executing a trade at the open and riding the day’s trend all the way to the close while others will employ a scalping strategy, entering and exiting the market rapidly, often making several trades daily.
Whether you are a full time stock day trader, swing trader or a hard core fundamental long term investor, mini futures trading offers and excellent opportunity for short term profits. Emini contracts are available to trade for all of the Indexes: S&P 500, NASDAQ, DOW and The Russell, all of which offer enough liquidity to enter and exit the market several times daily.
With lower margin requirements than the full-sized index futures contract, the mini index contract is available to those that don’t have the $25,000 minimum required to open a stock day trading account, which eliminates many people that would otherwise participate in the stock market on a daily basis.
If you’re bored with trading stocks and looking for a new financial instrument to trade, you should consider mini futures trading. With enough liquidity on a daily basis to trade several times each session, more than enough opportunity exist to profit.
Since the trader often focuses on one index contract such as the Dow YM, he eliminates hours of research which otherwise would be required to locate stocks to trade.
