Small Trader looking for new markets to spread risk? Interested in Forex and Futures

[AirborneTrader]

Hi,

I'm starting to search for new markets to trade that can offer uncorrelated (as much as possible) opportunities relative to equities for a small trader. I'd really appreciate suggestions on where I can start looking.

I'm a stock swing trader slowly growing a small account 12K x margin with my goal not so much to rake in money but to refine my trading as I slowly grow my account. I trade small positions limiting most trades to around 4% of the portfolio. I keep my losses small in the 5% range. My typical trade right now is in the $1000-1500 range so small..

I do very well on the long side buying weakness. My losses come from the short side when I feel we're at the upper end a SPX range and I look for weak stocks to short. As we're in a bull market and I don't like to fight the trend I'm looking to minimize shorting and increase my investments by finding new markets that have little or inverse correlation to equities. So I can do what I do best.. Buy weakness and ride the trend.. I'm starting to peek into the world of futures, options and forex.

My real profession is as a pilot. I've been traveling around the world my whole life. Forex is particularly interesting. However my first impression is that my account is likely too small at this stage considering the leverage, investments needed and possible losses. Same as futures. This is an initial view. Is it correct? Or can a little guy like me play in forex or futures while keeping minimal losses in check through risk management? Are there other markets out there more suitable? Or is it best I stick to stocks and ETFs for now?

Trading across multiple markets is a goal and there's a lot out there so I'd appreciate any input. Thank you in advance and happy trading!!!!!

AirborneTrader :clap:

 

[George A]

Hi,

I'm starting to search for new markets to trade that can offer uncorrelated (as much as possible) opportunities relative to equities for a small trader. I'd really appreciate suggestions on where I can start looking.

I'm a stock swing trader slowly growing a small account 12K x margin with my goal not so much to rake in money but to refine my trading as I slowly grow my account. I trade small positions limiting most trades to around 4% of the portfolio. I keep my losses small in the 5% range. My typical trade right now is in the $1000-1500 range so small..

I do very well on the long side buying weakness. My losses come from the short side when I feel we're at the upper end a SPX range and I look for weak stocks to short. As we're in a bull market and I don't like to fight the trend I'm looking to minimize shorting and increase my investments by finding new markets that have little or inverse correlation to equities. So I can do what I do best.. Buy weakness and ride the trend.. I'm starting to peek into the world of futures, options and forex.

My real profession is as a pilot. I've been traveling around the world my whole life. Forex is particularly interesting. However my first impression is that my account is likely too small at this stage considering the leverage, investments needed and possible losses. Same as futures. This is an initial view. Is it correct? Or can a little guy like me play in forex or futures while keeping minimal losses in check through risk management? Are there other markets out there more suitable? Or is it best I stick to stocks and ETFs for now?

Trading across multiple markets is a goal and there's a lot out there so I'd appreciate any input. Thank you in advance and happy trading!!!!!

AirborneTrader :clap:

Hello AB trader
From what i have read here , you seem to be doing well , and i do NOT know why u want to do something else when u r on a winner .
Currencies are good BUT faster moving market in my opinion , with bigger ranges , so losses can compound much quicker than indices for example .
Also smaller accounts in my opinion are much more suited for currencies as the leverage is high hence why NOT much funds are required . and yes i know higher losses with high leverage , BUT there are 2 sides to everything i suppose .
This my input , and hope it will help ur thinking .
Cheers,
George

 

[AirborneTrader]

Thanks for the advice. I guess I'm hesitant to increase too much long exposure in stocks especially when the general market is in overbought territory. You're confirming what I assume about currencies. It may be out of my league. With so much to learn and look into out there advice like yours is helping me swift through it all. Thanks a lot!!!

 

[George A]

Thanks for the advice. I guess I'm hesitant to increase too much long exposure in stocks especially when the general market is in overbought territory. You're confirming what I assume about currencies. It may be out of my league. With so much to learn and look into out there advice like yours is helping me swift through it all. Thanks a lot!!!

You are more than welcome AB. it was NOT an advise by no means , BUT rather a suggestion .
What i do NOT like about stocks is the fact that the market is closed through the night , which has a level of danger due to huge gaps in the market on almost a daily base , unlike currencies and indices which now days run 24/5 .
Cheers,
George

 

[CityMasterTrader]

Hi,

I'm starting to search for new markets to trade that can offer uncorrelated (as much as possible) opportunities relative to equities for a small trader. I'd really appreciate suggestions on where I can start looking.

I'm a stock swing trader slowly growing a small account 12K x margin with my goal not so much to rake in money but to refine my trading as I slowly grow my account. I trade small positions limiting most trades to around 4% of the portfolio. I keep my losses small in the 5% range. My typical trade right now is in the $1000-1500 range so small..

I do very well on the long side buying weakness. My losses come from the short side when I feel we're at the upper end a SPX range and I look for weak stocks to short. As we're in a bull market and I don't like to fight the trend I'm looking to minimize shorting and increase my investments by finding new markets that have little or inverse correlation to equities. So I can do what I do best.. Buy weakness and ride the trend.. I'm starting to peek into the world of futures, options and forex.

My real profession is as a pilot. I've been traveling around the world my whole life. Forex is particularly interesting. However my first impression is that my account is likely too small at this stage considering the leverage, investments needed and possible losses. Same as futures. This is an initial view. Is it correct? Or can a little guy like me play in forex or futures while keeping minimal losses in check through risk management? Are there other markets out there more suitable? Or is it best I stick to stocks and ETFs for now?

Trading across multiple markets is a goal and there's a lot out there so I'd appreciate any input. Thank you in advance and happy trading!!!!!

AirborneTrader :clap:

With your size of account I’d suggest limiting things to equities. FX can be very jumpy, is OTC and trades 24/5 meaning you have overnight risk. Stocks tend to move more slowly and stop losses should be respected meaning risk can be managed more effectively. Your risk and trade size look like you should manage to stay in the game a good while. Remember to focus on good reward vs risk opportunities, to make sure that the few winners cover the unavoidable losses. Good luck to you