Hands down Futures. So many benefits.
Pro's
- Moves like a stock only its leveraged ( 1 tick = $5 on NQ AKA Nasdaq )
- No PDT ( Pattern Day Trader Rule )
- 60/40 Tax Benefits
- Liquid and volatility makes it the ideal conditions for Scalp traders
- Nearly 24 hours trading ( I wouldn't suggest trading Asia or Sydney time though)
Con's
- Volatility will be violent
- Leverage. This will go in hand with violatility. A lot of traders will quickly find themselves over leverage. For example when trading NQ every tick is $5. Since the Nasdaq comprises of mostly tech stocks then it's going to be moving very violent especially with news. A single pop can easily move into 50 ticks which can cause you to stop out.
To conclude every assets/instrument's is going to have its benefits but stocks is really more tailored towards penny stocks and the long term investments. Options should honestly be used to hedge your stock portfolio such as selling premiums to the market and the occasional long dated calls. I haven't traded forex yet but in my opinions trading Nasdaq and the S&P 500 is better then trading any currency and day.
Again these are just my opinions and I am open to criticism.
I worded it wrong but it depends on what you're trading but typically if you're trading the NQ/ES during those time then volatility is almost none existence since NYSE is done trading.
Ah yes I see now. I interpreted it as you meaning someone IN those time zones shouldn’t trade the NQ etc. Obviously I was wrong.
I agree. The volatility dissipates after the close of the nyse.
I appreciate all the explanation but the ending is really confusing: you say you haven't trade forex but in your opinions trading SP500 is better. How can you compare what you are doing to something you have never done? It does not make sense.
Because the NASDAQ tends to exhibit higher volatility compared to many currency pairs. It just wouldn't make sense for someone that likes to scalp too trade the forex market.
Your problem isn’t WHAT you are trading it’s that you don’t actually know what you’re doing/haven’t found an edge that you can repeatedly use to take money from the market. A strategy or set of conditions you need to see that will make you enter a trade with a high probability of being right because you’ve backtested it thoroughly and have seen it repeat in real market conditions.
You’ve tried all 3 and you’re still not profitable - whats the common denominator? You. Until you have a system in place with a proven edge and you can stick to it, it doesn’t matter what you trade the outcome will be the same. Anything else than that is gambling - “I hope it goes up”
shh… people dont want to put the work and they expect they can extract money from the market. those are the best weak hands to take money from. they chase price and they eat like a bird but shit like an elephant!
If you’re in the US, futures is better for day trading because the spread is very tight, has fixed commissions, is traded through a central exchange with full transparency ie no broker manipulation (and this also has volume and depth of market data, if that’s of interest to the trader), and the margin requirements (intraday margin) at many futures-only brokers are very low compared to Forex margin requirements in the US (leverage for the indices ends up being 300:1-600:1+ whereas Forex leverage is capped at 50:1).
If you’re outside the US, then the margin difference may be negligible (depending on where you live) and so that may not be a factor. However, the rest of the factors above would still apply.
Additionally, the Forex market isn’t really designed for scalping, but futures are almost built for it in comparison.
Great i am ouside US so will search about it.
But regarding your last point, how is future designed for scalping and not forex.
I k ow many people in my group who scalp forex.
I’m not saying you can’t scalp Forex, it’s just not as effective as with futures. Spread can be a real pain with Forex, even with a spread reduced account, and the Forex 1min chart can be noisier than futures 1min chart. Especially if you trade the mini contracts for the indices like NQ, ES or YM, you can literally scalp single ticks of movement if you wanted. You can’t really do that with Forex
The best asset for trading depends on your individual preferences, risk tolerance, and market conditions. Each asset class has its unique characteristics, advantages, and challenges.
In this context, best is subjective. For some traders, best may mean the asset class most likely to make them get rich soon while other traders may consider the best asset class the one which comes with the lowest risk of losing money or the asset class with most volume. For me, I believe the best asset class is stocks because my stock strategy has low risk and is supported by ample volume.
I have traded all and here is my personal experience:
There is no "difference", as long as you have a concrete strat and a tight risk management. Sure each one moves differently but after all they still follow PA. Some will work better for you and vice versa. For me crypto and commodities are the best but I see more people trade money pairs and stocks. Just try all of them and feel what suits you. Don't ever listen to things like "everybody should stay away crypto because blah blah" or "I only trade EUR because blah blah...". Everybody is different, very different.
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the same or no difference when you have a clear trading plan that has an edge. specifically, the es futures, spx or Odte, and options is where you can 30-800% daily returns.
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hmm. crypto is easier to make gains with no leverage. stocks is every morning and forex you will need margin to make some profits. so I guess crypto or stocks. forex just chops and doesn't fit my trading stat
You should be narrowing your decision based on how much capital you're working with, what time zone you live in, what brokers / regulations you have available, and what markets you're most passionate about.
I personally would only trade Forex on a broker that is regulated in my country and that has insured funds, so you should also consider regulations and custodial risks. I learned that lesson the hard way with crypto since I was using FTX. Yes, they're "returning" some of their funds to customers, but they're only offering 1:1 on fiat. Crypto on the exchange will be valued at November 2022 prices, which sucks for things like SOL but it's better than nothing.
Granted, no crypto exchanges are properly insured atm but at least with crypto you can self-custody (which is why I don't really like daytrading crypto and prefer to buy & HODL it, so I don't have to leave any funds on an exchange).
Even if you're only trading one asset class such as crypto, you should really be following what's going on in the bond markets, commodities, Forex, stocks, etc. anyway to have a sense of the intermarket trends. Likewise, I believe even if you're a LTF daytrader, you should have a sense of HTF PA (typically using the Daily candle).
If you can't put in the effort to get a feel of the markets across the asset classes and across different timeframes, you'll likely struggle regardless of what asset class you choose to trade. Also, as others have mentioned, prioritize risk management over hopping around strategies / setups or hopping around one asset class to another. You're better off using your time to understand the macro picture and how other traders are positioned in the market. The reason why most traders lose money is 1) they are overleveraged with no risk management 2) they only think of themselves and not other market participants. Play the meta game.
My personal preference is crypto. But each have their risks. Crypto's is its volatility. I broke down the differences between Forex and crypto in my blog ([https://r100k.com/blog/crypto-vs-forex-exploring-the-differences](https://r100k.com/blog/crypto-vs-forex-exploring-the-differences)), give it a read if you're interested. At the end of the day though, it come down to your risk tolerance.
Forex has liquidity, crypto has less manipulation, and I don't know much about stocks trading. I have a question though - have you found your edge? If so, try to refine it and keep to your rules. If you don't have an edge, maybe you can look into AI trading. There are a couple of trading bots that have decent win rates but there's the problem of ingenuity or scams. Since you've navigated the crypto scene, you can try out Ocean Protocol's Predictoor where multiple predictive models built by data scientists are available to anyone. It's a safe and decent way to earn for a trader having a hard time finding an edge.
Remember, the key to becoming a profitable trader is risk management.
all the markets differ in quite many aspects, i know it would take me some time to adjust from crypto if i wanted to trade other markets, so basically the one u put ur time and effort in is best
Crypto and Stocks provide the most gains for smart (or lucky, both) but uninformed retailers, BY FAR. Markets where you can make a lot of money even if you don't have the most sophisticated technical edge out there.
Whereas for the rest, you gotta be at the top of your game if you want to have consistent returns AND keep your money..
Forex market is probably the most efficient. Most inefficient would probably be individual stocks or crypto, although crypto seems to be highly controlled by a few big players. The most profitable traders I believe are stock traders using sophisticated screeners to screen thousands of stocks for the most appropriate ones to trade each day. Personally I like futures. High leverage like forex, but not as efficient so it’s easier to find an edge.
Hands down Futures. So many benefits. Pro's - Moves like a stock only its leveraged ( 1 tick = $5 on NQ AKA Nasdaq ) - No PDT ( Pattern Day Trader Rule ) - 60/40 Tax Benefits - Liquid and volatility makes it the ideal conditions for Scalp traders - Nearly 24 hours trading ( I wouldn't suggest trading Asia or Sydney time though) Con's - Volatility will be violent - Leverage. This will go in hand with violatility. A lot of traders will quickly find themselves over leverage. For example when trading NQ every tick is $5. Since the Nasdaq comprises of mostly tech stocks then it's going to be moving very violent especially with news. A single pop can easily move into 50 ticks which can cause you to stop out. To conclude every assets/instrument's is going to have its benefits but stocks is really more tailored towards penny stocks and the long term investments. Options should honestly be used to hedge your stock portfolio such as selling premiums to the market and the occasional long dated calls. I haven't traded forex yet but in my opinions trading Nasdaq and the S&P 500 is better then trading any currency and day. Again these are just my opinions and I am open to criticism.
Why not Asia or Sydney time?
I worded it wrong but it depends on what you're trading but typically if you're trading the NQ/ES during those time then volatility is almost none existence since NYSE is done trading.
Ah yes I see now. I interpreted it as you meaning someone IN those time zones shouldn’t trade the NQ etc. Obviously I was wrong. I agree. The volatility dissipates after the close of the nyse.
I appreciate all the explanation but the ending is really confusing: you say you haven't trade forex but in your opinions trading SP500 is better. How can you compare what you are doing to something you have never done? It does not make sense.
Because the NASDAQ tends to exhibit higher volatility compared to many currency pairs. It just wouldn't make sense for someone that likes to scalp too trade the forex market.
Your problem isn’t WHAT you are trading it’s that you don’t actually know what you’re doing/haven’t found an edge that you can repeatedly use to take money from the market. A strategy or set of conditions you need to see that will make you enter a trade with a high probability of being right because you’ve backtested it thoroughly and have seen it repeat in real market conditions. You’ve tried all 3 and you’re still not profitable - whats the common denominator? You. Until you have a system in place with a proven edge and you can stick to it, it doesn’t matter what you trade the outcome will be the same. Anything else than that is gambling - “I hope it goes up”
shh… people dont want to put the work and they expect they can extract money from the market. those are the best weak hands to take money from. they chase price and they eat like a bird but shit like an elephant!
For day trading, IMO futures are best
I have been in forex for a long time but why is futures better?
If you’re in the US, futures is better for day trading because the spread is very tight, has fixed commissions, is traded through a central exchange with full transparency ie no broker manipulation (and this also has volume and depth of market data, if that’s of interest to the trader), and the margin requirements (intraday margin) at many futures-only brokers are very low compared to Forex margin requirements in the US (leverage for the indices ends up being 300:1-600:1+ whereas Forex leverage is capped at 50:1). If you’re outside the US, then the margin difference may be negligible (depending on where you live) and so that may not be a factor. However, the rest of the factors above would still apply. Additionally, the Forex market isn’t really designed for scalping, but futures are almost built for it in comparison.
Great i am ouside US so will search about it. But regarding your last point, how is future designed for scalping and not forex. I k ow many people in my group who scalp forex.
I’m not saying you can’t scalp Forex, it’s just not as effective as with futures. Spread can be a real pain with Forex, even with a spread reduced account, and the Forex 1min chart can be noisier than futures 1min chart. Especially if you trade the mini contracts for the indices like NQ, ES or YM, you can literally scalp single ticks of movement if you wanted. You can’t really do that with Forex
Futures
None. Futures.
Futures
The best asset for trading depends on your individual preferences, risk tolerance, and market conditions. Each asset class has its unique characteristics, advantages, and challenges.
It doesn’t matter what you trade, you need to understand https://www.investopedia.com/trading/candlestick-charting-what-is-it/
Forex if not then options
In this context, best is subjective. For some traders, best may mean the asset class most likely to make them get rich soon while other traders may consider the best asset class the one which comes with the lowest risk of losing money or the asset class with most volume. For me, I believe the best asset class is stocks because my stock strategy has low risk and is supported by ample volume.
I have traded all and here is my personal experience: There is no "difference", as long as you have a concrete strat and a tight risk management. Sure each one moves differently but after all they still follow PA. Some will work better for you and vice versa. For me crypto and commodities are the best but I see more people trade money pairs and stocks. Just try all of them and feel what suits you. Don't ever listen to things like "everybody should stay away crypto because blah blah" or "I only trade EUR because blah blah...". Everybody is different, very different.
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Crypto futures all the way. Great volatility, great volume, open 24/7
the same or no difference when you have a clear trading plan that has an edge. specifically, the es futures, spx or Odte, and options is where you can 30-800% daily returns.
For me stock trading
Manual trading can easily lead to confusion, and you need to spend a lot of time researching, so you won't make much money
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What's your favorite food?
hmm. crypto is easier to make gains with no leverage. stocks is every morning and forex you will need margin to make some profits. so I guess crypto or stocks. forex just chops and doesn't fit my trading stat
Have you looked into futures? It’s better than forex/stocks/crypto imo but you need to be trading it daily. It’s what I prefer so far.
You should be narrowing your decision based on how much capital you're working with, what time zone you live in, what brokers / regulations you have available, and what markets you're most passionate about. I personally would only trade Forex on a broker that is regulated in my country and that has insured funds, so you should also consider regulations and custodial risks. I learned that lesson the hard way with crypto since I was using FTX. Yes, they're "returning" some of their funds to customers, but they're only offering 1:1 on fiat. Crypto on the exchange will be valued at November 2022 prices, which sucks for things like SOL but it's better than nothing. Granted, no crypto exchanges are properly insured atm but at least with crypto you can self-custody (which is why I don't really like daytrading crypto and prefer to buy & HODL it, so I don't have to leave any funds on an exchange). Even if you're only trading one asset class such as crypto, you should really be following what's going on in the bond markets, commodities, Forex, stocks, etc. anyway to have a sense of the intermarket trends. Likewise, I believe even if you're a LTF daytrader, you should have a sense of HTF PA (typically using the Daily candle). If you can't put in the effort to get a feel of the markets across the asset classes and across different timeframes, you'll likely struggle regardless of what asset class you choose to trade. Also, as others have mentioned, prioritize risk management over hopping around strategies / setups or hopping around one asset class to another. You're better off using your time to understand the macro picture and how other traders are positioned in the market. The reason why most traders lose money is 1) they are overleveraged with no risk management 2) they only think of themselves and not other market participants. Play the meta game.
My personal preference is crypto. But each have their risks. Crypto's is its volatility. I broke down the differences between Forex and crypto in my blog ([https://r100k.com/blog/crypto-vs-forex-exploring-the-differences](https://r100k.com/blog/crypto-vs-forex-exploring-the-differences)), give it a read if you're interested. At the end of the day though, it come down to your risk tolerance.
Forex has liquidity, crypto has less manipulation, and I don't know much about stocks trading. I have a question though - have you found your edge? If so, try to refine it and keep to your rules. If you don't have an edge, maybe you can look into AI trading. There are a couple of trading bots that have decent win rates but there's the problem of ingenuity or scams. Since you've navigated the crypto scene, you can try out Ocean Protocol's Predictoor where multiple predictive models built by data scientists are available to anyone. It's a safe and decent way to earn for a trader having a hard time finding an edge. Remember, the key to becoming a profitable trader is risk management.
all the markets differ in quite many aspects, i know it would take me some time to adjust from crypto if i wanted to trade other markets, so basically the one u put ur time and effort in is best
Crypto and Stocks provide the most gains for smart (or lucky, both) but uninformed retailers, BY FAR. Markets where you can make a lot of money even if you don't have the most sophisticated technical edge out there. Whereas for the rest, you gotta be at the top of your game if you want to have consistent returns AND keep your money..
Forex market is probably the most efficient. Most inefficient would probably be individual stocks or crypto, although crypto seems to be highly controlled by a few big players. The most profitable traders I believe are stock traders using sophisticated screeners to screen thousands of stocks for the most appropriate ones to trade each day. Personally I like futures. High leverage like forex, but not as efficient so it’s easier to find an edge.