Unlike day trading the futures markets, stock trading offers a wider variety of investment opportunities including access to shares in companies like Coca-Cola, Wal-Mart, and others. Many publicly held companies use a stock exchange such as the NYSE (New York Stock Exchange) in the United States and the LSE (London Stock Exchange) in Great Britain.
Stock trading can be an excellent choice for more seasoned day traders. However, stock trading may be more challenging for those just starting to day trade.
Over the years, the United States Security Exchange Commission has placed onerous restrictions on stock trading. Because of the SEC margin rules for US stock trading, day traders must have at least $25,000 in cash or securities available to do stock trading. This restriction means anyone who is just starting out as a day trader will need to deposit over $25,000 into their day trading account.
It is important to note that the SEC rules around trading assets for stock trading do not apply to the futures markets. As such, trading futures gives beginner day traders access to popular futures markets tied to the US and foreign currencies such as the Swiss franc, British pound and the euro. Additionally, by trading futures contracts, day traders with smaller accounts can get access to traditional stock indexes such as the NASDAQ and DAX. In addition to the traditional indexes, Futures traders have access to a broad variety of other commodities to trade such as wheat, gold, and oil.
Futures day trading, by definition, means no futures contract position is held overnight. An “open contract” is maintained only while the market is open and active. Traders who prefer to hold their positions overnight or for an extended period are typically called position traders.
Whether you are stock trading or day trading futures contracts, most traders elect to use efficient day trading systems to generate better profits. Many futures traders tend to use their trading software to focus on one or two markets whether that is because of a particular trading system, a preferred geographic location, or their personal trading style.
If a trader has an efficient day trading system with reliable technical analysis indicators, they do not have to be full-time day traders. There are many options to trade part-time whether it is in the morning, evening, or midday. Because of the ease of online trading, day trading, the futures market can not only be cheaper but it can also be simpler than stock trading.
TESTIMONIAL DISCLOSURE: Testimonials appearing on www.IndicatorWarehouse.com may not be representative of the experience of other clients or customers and is not a guarantee of future performance or success.
LIVE TRADE ROOM DISCLOSURE: All presentations, videos, and information are for educational purposes only and the opinions expressed are those of the presenter only. All trades presented should be considered hypothetical and should not be expected to be replicated in a live trading account.
Commodity Futures Trading Commission Futures and Options trading has substantial potential rewards, but also significant potential risk. You must be aware of the risks and be willing to accept them to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS, IN GENERAL, ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Use of any of this information is entirely at your own risk, for which Indicator Warehouse will not be liable. Neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or suitability of the information and content found or offered in the material for any particular purpose. You acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. All information exists for nothing other than entertainment and general educational purposes. We are not registered trading advisors.