Why daytrade stocks instead of futures?

[Tech Analysis]

PDT rule and 25k requirements for daytrading stocks. Now all you need is a paltry 5k and you're a futures daytrading maven

 

[mercedes500]

Leverage is the answer. You can much more leverage with future. Which is great and dangerous at the same time.

 

[aphexcoil]

Advantages of Trading Futures:

- Lightning Fast Executions (from what I hear)
- Very good Spreads
- One market, knowlege of only one trading vehicle
- High level of leverage
- Ability to hedge against a diverse portfolio
- No risk of bankruptcy or corrupt CEO / Board
- Short-term holdings have favorable tax consequences over Stocks
- No SEC


Advantages of Trading Stocks:

- Wide range of choices to trade
- More ability to be creative when trading (pairs, etc)
- Leverage via Options and Margin
- Ability to use futures as a slight leading indicator


Disadvantages of Futures Trading

- Lack of leading indicators
- Huge ability to leverage can work against you
- Generally one of the most difficult markets to trade

Disadvantages of Stocks

- Risk of Bankruptcy
- HALTS
- Specialists
- SEC
- Poor execution speed and poor spreads for some stocks
- Taxed unfavorably for short-term holding times