No, it can be applied to stocks as well. We have a number of students who trade stocks in timeframes ranging from 2 min. to daily charts and they have been satisfied with our approach. Our materials, however, are geared to stock index futures.

The fact is that futures are simpler and offer more profit potential that than options or stocks.  With the emergence of the S&P mini futures, trading has become faster, simpler, and safer. 

Here are five reasons why futures are far superior investments to trade than options and stocks:

Reason # 1 - Futures are much simpler than options.

Options are very complex.  You have to worry about expiration dates, strike prices, delta values, and a bunch of other hard-to-understand terms.  You also have to figure out how to choose just the right stocks to trade out of thousands of potential stocks.  It takes way too much time and it gets very complex.  With futures, you just trade the S&P index every day.  Simple.

Reason # 2 - You don't have to pay big premiums with futures.

Because there are a bunch of complex rules that restrict you from selling options when you want to, so the spreads are wider, so you have to pay higher premiums.  On the other hand, you can buy and sell futures anytime you want, which lowers the risk of holding them.  This means that you don't have to pay the same big premiums you do with options.

Also, you get more bang for the buck with futures because you don't have to pay a big margin deposit like you do with futures. 

Reason # 3 - You don't have to pay high interest charges with futures.

In order to leverage your money with stocks you have to borrow "on margin" from your brokerage firm.  To borrow this money you have to pay a big interest charge.  Not so with futures. 

Reason # 4 - Futures are easier to sell short.

I've already mentioned that you don't have all the complex rules to hinder you from selling futures.  If you want to sell off with options you have to do multiple trades, get charged multiple commissions, and sometimes it's a slow process.  With futures there is only one trade, one commission, and no delay.

Reason # 5 - You can trade 24 hours-a-day.

Many futures on major indices can be traded 24 hours-a-day.  The S&P, for example, can be traded from 5:30 p.m. Sunday to 3:15 p.m. on Friday.  You can trade pretty much anytime you want.

GO BACK TO QUESTIONS

Question # 5 - What kind of expenses are involved in getting started trading ?

Real-time quotes will run from $70-$300 pr. month depending on data vendor (Quote.com, BMI, eSignal, Signal, DTN etc.), method of delivery (i.e. internet, cable or satellite) and number of exchanges bought (CME, CBOT, COMEX etc.). This is your primary on-going expense.

Trading software ranges from free (Quote.com's QCharts) to $2,500 for TradeStation by Omega Research.

Finally, if you don't own a computer you will need to get one. The cost of a suitable 'off the shelf' system from a reputable vendor starts at approx. $800.

GO BACK TO QUESTIONS

Question # 6 - Is your course set up for a beginner who has no understanding at all ?

  Click Here to Listen to the Audio Answer To Question # 6