What are some of the differences between the commercial stocks vs. futures vs. Aliens?
I only trade stocks right now, but I heard people swear by trading futures or forex. I never tried both. It is a more volatile and therefore easier to make more money?
The main difference between stocks and futures trading is the leverage involved. Into account a range of values, you can trade 2:1 or 4:1 leverage. In an account of future you can trade the E-mini or mini Dow futures, with 20:1 or 40:1 leverage. This makes your profit and loss account value to be extermely volatile and very dangerous if you return the maximum leverage. In a futures account, you can lose more than you have invested. Forex is just another form of futures account, except here, the leverage maximum is 200:1. Oh, how much trouble we can get now? You have to be aware of the economic reports for the currencies traded and the reports U.S., such as GDP, retail sales, and particularly the adjustment of interest rates and differentials. Unless you are willing to trade gap trades, the opportunity is very little here compared to the enormous movement of the report. These operations can be very laborious, amid reports. Or some big news announcement will break, or someone who declares war, or triggers the bomb, and blows you completely out of the trade. Trading The Forex is not for the beginner or faint of heart. Find a good simulator and practice, practice.
Stock Market Trading: Dow Jones Technical Analysis Jan 08
