One of the questions I get asked all the time, “how do I get into the scary world of Futures Trading versus Equity trading?”
For starters, the prevailing perception that Futures is scary is typically wrong. I believe Futures are the best vehicle for traders for three reasons:
1. Tax advantages
Rather than filing heaps of paper, you get a 1099 at the end of the year. Professionals trade Futures because they get to keep more of their profits in their pockets. Contact your CPA for more details.
The Futures products are the most transparent and give you the most flexibility to move in and out of the market when things happen. For example, the financial products trade almost 24 hours a day. While other Futures products have different open sessions, they all basically operate 24 hours / 6 days a week.
I’ve traded Equities and I’ve traded Options. I did that for multiple hedge funds for 15 years.
I began to trade Futures on my own in the early 2000s to seperate myself from the Equity side of the business.
It’s one of the best moves I ever made.
In fact, if I had started trading in the Futures market, I would have never dabbled in the Equities market. Due to the efficacy, the simplicity, and the number of products avilable. There are financial products (S&P, Nasdaq, Russell, Dow), Interest products, Metals (Gold, Silver), Energy (Oil, Gas), Grains (Beans, Corn), Currency (Euro, Dollar), the list goes on.
These vehicles are some of the most liquid you can find in the world. By liquid, we mean there is high participation in these markets. Higher participation in a trading vehicle means a healthier auction.
To be fair, you can use Market Profile as a tool to help you function in any market, but you will hear us teach from the Futures space because of the 3 reasons mentioned above.
Whether or not you make that transition is up to you.
BTW, If you’re already trading Equity ETFs like the SPY or QQQ, that’s another reason to move to Futures. The shear costs of trading make the Futures vehicle a better option.
Contact us today. Let us know what you would like to achieve in your trading, and let’s work together to help you identify the markets you can be most successful in!