There are many markets to trade and whether you are a trend trader, a swing trader, day trader, or scalper, you must choose a market to specialize in. The major markets that use the aforementioned trading styles are in either the stock, futures or Forex markets. One must choose a market to become a specialist and we believe that the futures market is the best. Trading baseball cards doesn’t count.
There are certainly more reasons than the following to make the argument that futures markets are better than the others, but the following are a few good reasons why we choose futures.
- There is no pattern day trading rule in futures that would stop you from being an active trader. In order to be a “pattern day trader” in equities, you must maintain a minimum of $25,000 in your account. There are no such rules in the futures market.
- The stock market is open roughly 7-hours per day; however, futures are open 23-hours per day.
- Futures are traded on a centralized market, the CME, whereas stocks and Forex are fragmented.
- If you want, or need, to trade early because of work requirements, futures allow for that in many markets. For example, currency and crude oil futures both have regular starting times before the NYSE opens.
- The S&P 500 futures market is not susceptible to poor earnings reports, buyout rumors, or downgrades. When day trading individual stocks, however, these are potentially very risky issues.