11 replies to this topic

[andr99]

I'm often asking myself if I could ever be able to trade futures. So far I've traded stocks applying various tricks of TA that I have adapted to create 

a personal approach. At this point I'm tempted to enter the world of futures and I've seen the two guys here who post real time entry points making 

substantial gains. The question is, what kind of approach does the majority of future traders here, follow in order to handle futures ? In other words

have you got a mechanical trading system or do you simply apply the old school rules of technical analysis ? 

[12SPX]

Great question!!  Not speaking for others but all I do is look at basic overbought/oversold basic indicators and then trade it the opposite way when its peaking, look at my expiration cycle numbers to give an indication of direction but almost purely trade on watching the tape.   I can do that as I've followed the market for years so you get a feel for it.  Number one thing is never chase and sometimes when big events are coming up like this Fed meeting its best to just trade options and let the volatility kill your premiums.  For example with the ES premium about +65 points above cash, call options indicating the market is going to the moon, I'm already selling the October expiration cycle after taking full profits on my Septembers as options there are only worth pennies now.

[andr99]

Great question!!  

 

you know, tennis players when they learn how to play tennis, without taking a single one hour lesson and they end up at 16 with a tecnique that is the same that they teach  

in tennis schools, well that means they have enough brain to ask good questions, at least one every two or three years.....LOL. Don't take the comment seriously, I'm joking, although 

it's true what I wrote about my tecnique and how I got to develop it.     

[andr99]

thank you for the reply, obviously. It makes me understand that probably I could succeed with a little bit of patience and a resilient approach avoiding big risks.

 

As for tennis, this below is the new multifilament I will try 

 

https://www.msv-tenn...anguage_code=en

 

always searching power associated to control, that is what I need.   

[MikeyG]

If you plan on holding less than one year, futures are much better for its 60/40 tax treatment. 

[andr99]

I'm in Europe and taxation here is 26% and it is applied directly when you close your position. 

[12SPX]

Selling options may be a good idea then as you sell them and sit back watching the premium decay until they expire worthless or take profits as time runs out.  It's interesting though you mean they literally take the tax once the trade is done out of your account??  What if your a corporation?? 

[andr99]

Selling options may be a good idea then as you sell them and sit back watching the premium decay until they expire worthless or take profits as time runs out.  It's interesting though you mean they literally take the tax once the trade is done out of your account??  What if your a corporation?? 

 

capital gains are taxed 26% and there are two standards for paying them, you have to choose one. The first one is paying 26% every time you close a winning position which thing is done directly for you by your broker, the second one is to declare your capital gains in your tax return once a year. Corporations obviously choose this second standard. 

Edited by andr99, 17 September 2024 - 09:37 AM.

[K Wave]

If you plan on holding less than one year, futures are much better for its 60/40 tax treatment. 

 

 

Not only that, you avoid the night monkey gaps...AGQ is a classic example. Of course I am probably a lot more actively trading than most, so might not matter for longer swings

 

NONE of those gaps in the Silver futures chart. I pretty much trade only futures now, unless I see a really compelling stock option trade setting up.

 

Edited by K Wave, 18 September 2024 - 12:33 PM.

[K Wave]

Futures may "seem" exotic or scary, but they are not. And you can easily choose the level of leverage vs your capital available. 

 

As far as systems go, no real difference in a stock chart vs a futures chart, save for the huge gaps that often come in stock charts.

 

Charts are charts. I use multi time frame analysis, and the more time frames in agreement, the bigger I play and the longer I am willing to hold the trade.

Edited by K Wave, 18 September 2024 - 12:40 PM.