What is easier to trade? Stks or Futs?

candletrader · Jul 10, 2005

Quote from protrader-2K5:

thanks candletrader... I understand

but in my experience... one could lay out the holy grail right here, right now and chances are

most would never get it.

my 2 cents worth... you and I have already mentioned the 'holy grail' to 'making it'

I laid out my views on the Holy Grail in the link...

Charlie Dow · Jul 10, 2005

I also trade futures due to the leverage, quick feed back, and near constant liquidity.
I trade intraday, swing & position and since I started with the futures I totaly gave up stocks. Mr doctor said my stress level has all but disappeared.
It could have been the sexy brunette or the new pool I guess too.

candletrader · Jul 13, 2005

Quote from Charlie Dow:

I also trade futures due to the leverage, quick feed back, and near constant liquidity.
I trade intraday, swing & position and since I started with the futures I totaly gave up stocks. Mr doctor said my stress level has all but disappeared.
It could have been the sexy brunette or the new pool I guess too.

I'll take the sexy brunette, send her my way...

libertad · Jul 13, 2005

Because of the fact that stock commissions are very low...and that you can easily obtain 10:1 leverage....There are several inviting stocks that to me are more comfortable to trade than futures......

I have traded OEX..SPX options credit spreads in size...and have traded S&P 500 futures...

Because of the leverage...low commissions...excellent direct access technology...I feel that my profitability is more reliable with stocks...I feel more conservative for some reason...

Rearden Metal · Jul 13, 2005

Nobody has yet mentioned the fact that futures are far more tax efficient.

trendo · Jul 13, 2005

Isn't the taxation the same if held for less than a year?

zf trader · Jul 13, 2005

I response to the original post, if i was in your position I would start slowly diversifying away from futures. You have enough money that you need to have some good sources of yield on your excess trading capital. I would look at selling cash covered puts on MO (Altria or whatever Philip Morris is called now). MO puts have the dividend built into the price so the premiums are a little bit dear. So either you have a stock with a 6% yield or the put expires worthless. Nothing spectacular but a low risk way to get yield.

Rearden Metal · Jul 13, 2005

Quote from trendo:

Isn't the taxation the same if held for less than a year?

No, taxes are way lower on futures profits, regardless of time frame.

EDIT: Not sure if the tax advantage really applies to people in low tax brackets.