Day Trading and Futures Trade Speculations – Finding the Right Investment Opportunity By Todd Rampe When it comes to trading futures commodities, particularly in the case of daytrading opportunities, which involve buying and selling various assets within the same day, there are many great advantages for making large profits over a short period of time.
The Main Advantages of Futures Assets What is the futures market? It basically involves the buying and selling of trading contracts for a variety of commodities through speculation on fluctuating prices. These deals usually bring far more advantages than many other investment opportunities: • • • •
Future markets tend to move very quickly – much faster than cash markets. After acquiring a futures trading contract, you can trade it again within hours or even minutes. Sometimes, if you know what you're doing, this action can lead to thousands of dollars' worth of profit. Speculating with futures commodities is just a paper investment. You don't actually have to receive shipments of dozens of pounds of gold, silver, orange juice, or whatever else you may invest in. The trading contract itself is all you will need. You risk less while speculating on a lot more in shares or commodity values than if you actually bought the commodities in full. With a margin of only 10%, you can secure a futures contract, and sell when the price is right, obtaining an impressive profit. Compared to the stock or cash market, futures trade opportunities are much fairer and more liquid. You can't get “insider” information as easily, and regular reports are available, so that everyone gets a fair chance when trading the next day. Also, it is less likely that the price of most commodities would drop drastically overnight.
Is Futures Trading for You? Although this is a fair question, only you can answer it. Futures deals have become complex, and you will need to study the market in great detail before being able to make profitable investments. Nevertheless, should you choose futures and day trading, there is a world of opportunities out there, and as long as you carefully research the type of commodity you choose to trade, you will certainly be able to make quick and easy profit.