I here's frequently asked: Why would they not day trade Stocks, how come futures? Well, first know that I did trade Stocks for a long time. I started my foreign currency trading career by teaching themselves to day trade equities. I traded Stocks when the only S&P we was cursed with was the pit-traded protection plan!
About the year 2000 (or right at that moment - Y2K) I switched my focus toward a Emini Futures Market(s), exactly the S&P 500 Emini Auction. When I was foreign currency trading Stocks, my heart continues to pushing me to a good number of S&P 500. Well, back then the margin to trade was much more now, but the advent in the Emini Markets really repaid that up! The S&P Emini Market began all around 1997-1998. It was only if the year 2000 which i really got in going without running shoes.
I certainly have nothing against stock investing Stocks. Some equities are for that reason liquid and experience large swings the making of it fantastic for the workday trader, but this was system of the problem. I had to get a "basket" of Stocks i always watched AND traded. At one time, most of these, inside, were tech-Stocks as those were benefit flying days of techie!
So, why do DOES A PERSON trade futures markets over equity markets? Well, the important reason is I only have to watch ONE market in addition to being I watch S&P 500 Emini Current market everyday, I know it fairly well. The Emini Markets (not a perfect S&P) have very good volume plus. Compare this to Stock day trading that features to "know" many different Stocks and respect a multitude of charts - just not my cup of tea anymore!
Another good item: There is no 25 thousand dollar day trading rule in the shares markets! You can begin day trading futures with an account length and width only 5 thousand dollars and then the margins for emini futures vary from those for Stocks. With Stocks the leeway is 50 % all of the position. With futures exchanging, you can see intraday margin rates as few as $500 per contract! Very well as the extra leverage is more bang on-line buck, but be conscious with margin. If you stretch the elastic band too thin, it breaks completely!
Important to note: Although, as mentioned above, many futures brokers throws at you $500 margin rates, I take advantage of a $3500 minimum margin level when stock investing futures.
As an "income trader" I cannot need a big procedure my daily income goals as well as your futures markets. A 4 tick profit of waking time is a pretty fitness when trading 10+ functions. Not a bad deal in my book.
Day trading Stocks is not a bad thing. Air cleaner will add, I certainly have no dilemma it. If you like watching different Stocks and also have larger capital, go to achieve this! It is a a few preference and available real estate investment. If you are like me and like the idea of simply watching a real market, a very fruit juice market, then day trading property emini markets may be just your best option. I love day stock trading futures and honestly do not think I would ever day time trade Stocks again. The futures market provides me with all I need!
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