Cant really see the advantage of E-Minis versus Stock Options or Stock Index Options

Quote from abenyukh:
I thought all stock trades (short term or long) were taxed as capital gains?
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No offense man, but with your level of knowledge, I'd worry more about capital LOSSES.

Of course, if you feel like gambling and buy all the puts/calls your account allows and get lucky, well that is NOT trading. One can pretty much accomplish the same in Vegas.

Also, if you go the option route, stick to 1-2 options at a time. This way at least you can learn something from your tuition. With futures your "tuition" will disappear very fast and you won't have a chance to learn anything.

I actually do not like options. Would always prefer futures because of the lower overall trading costs. But as tuition for a newbie I would not use futures.
 
abenyukh,

The difference between trading stock or index options and eminis is like the difference between being a truck driver and flying a stealth bomber. You could argue they are basically the same, but there are also various differences.

I would say for your level of experience options are better than eminis, as long as you keep the following 2 things in mind:

1. Don't short options. (That means, never sell an option before you buy it; Only sell options that you have previously bought.)

2. Understand that unless you get extraordinarily lucky, you WILL lose 100% of your capital.
 
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