futures as a % of overall investment strategy

[Justin Fanning <Justin@xxxxxxxxxxxxxxxx>]

This is a little OT, in pure relation to Tradestation, but could I tap
the collective knowledge of the group in relation to futures as a %
of an overall investment strategy.

I've been bashing away at futures technical analysis for ~ 10 years
(part time) as 100% of my "investment" strategy.  I'm getting to
the point I simply have to accept my time is being poorly spent on
an "investment" where few make money, and my time would be best
spent on something where almost everyone (within reason) makes
money, such as property, bonds etc.

I'm starting to realise most people go bad in futures not because
of losses (within reason) but because they aren't making enough
money to cover their day-to-day living costs (under capitalised
business), and end up gutting the trading account for rent/food etc.
Any business that's starving the cash flow to cover costs, demise is
almost inevitable.

I see the only way forward in trading would be to wrap a business
plan around trading and raise 100k+ (25k for quality data feed,
50k for living (house, food, kids etc) & 25k to fund an account).
But logic would dictate if I can get 100k together that I can loose
without ramifications, why wouldn't I simply continue doing that
activity that brought in the 100k in the first place!

I use to scorn property, bonds and the like as un-sophisticated
investors, but in hind site, they are guys who little by little have
now accumulated reasonable wealth, while most of the futures
crowd is happy just to break even.  I'm reminded a little of the
tortes and the hair, the tortes in this scenario has collected his
monthly rent cheques and is now sitting on large capital gains,
while the hare with his live data feeds, formulas, systems &
indicators, has done a lot of running around, but gone nowhere.

I did some tests the other day, running some long term moving
averages over the S&P500 index will typically net ~ 10k/year,
perhaps that's how I should view futures, as a small lifestyle subsidy,
but stop trying to make a "future" out of it.

I'm obviously not the first to reach this point and was interested
in what paths others have taken.  Did you reduce your % futures
exposure (in both time & money terms), explore other markets?
options, currencies, stocks etc.?  Or give up the game all together
and go into something else?  (in which case you probably wouldn't
be on this list :) )

All input welcomed.

Kind regards,


Justin