When it comes to day trading, some people want to focus on making money the same day within a few minutes. Often times, their first stop in the world of trading is stock trading. However, stock trading, at least in our opinion, doesn’t lend itself well to short-term or intraday profit goals. Intraday trading can be thought of as opening and closing a position within the same day. The reason why this is highly appealing is that people like to see results quickly. They like to transfer a portion of their money from their brokerage account to a bank account. Does that sound like you?

[embedyt] https://www.youtube.com/watch?v=LaUU0-alQ-I[/embedyt]

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In comparison, when it comes to stock trading, if you’re not just taking someone’s stock picks, there is actually a whole different set of analysis involved. Want to get in on the ground floor of a company? By all means, take a look at low-cost OTC (Over the Counter) opportunities to get in at the ground floor, though there may be no telling if any one company is going to eventually establish an IPO or if the company is even going to file their financial paperwork correctly.

Hear this out.

Stock trading is long-term trading where you’re looking at the potential growth of a company holistically. So, you have to think long term. That means, if you’re going to get involved with a stock, you have to think about the company in depth. You’re looking to answer questions like, “Does this company have viable products or services? Is there truly a need for them? What does the competition look like? What is their growth plan? How well-capitalized are they?” Unless you’re equipped to deep dive into the inner-workings of organizations (and hopefully the company is honest and forthcoming describing themselves), good luck to you.

Rather, we prefer to stick with futures trading, where price and its patterns are on the chart. No need to answer all those big questions above. The E-mini S&P 500 can be a considered a more affordable version of the big S&P 500, which is a measure of 500 large companies listed on stock exchanges. So yes, the E-mini S&P is derived from the big S&P 500, which is why the E-mini S&P is considered a “derivative” in trading lingo.

Stock Trading: Execs Can Make or Break a Stock

By watching the video above, you’ll probably see why futures trading can be both fun and rewarding. Of course, there are downsides to any type of trading, which includes stock trading. In fact, with stock trading, a CEO can “fail” and that can really effect the price.

Did you see the news that came out today about the GME CEO? He forfeited over 587,000 shares for not meeting targets. If this was a year or more ago before the hype, GME was a relatively low-cost stock, and the CEO this news came out, would you think about selling your shares due to a lack of confidence in the CEO? If you thought about it, there’s a good chance others did and some will sell. However, GME has what some may considering a new trading culture behind it, so we will see how that plays out…

Anyway, back to the topic at hand. Regarding the CEO’s actions or lack thereof, that’s something we don’t have to worry about when it comes to the E-mini S&P. Remember, it’s a measure or assessment of 500 large companies. As they say, don’t put all your eggs in one basket! And please do not be confused in thinking that we’re recommending holding the E-mini S&P long-term. We use it for very short term investment opportunities. Most of our trading rules have you in and out within 20 minutes.

Today’s video shows our Atlas Line and Trade Scalper. Yes, you should know how to use the NinjaTrader 8 platform. We can teach you that. We have videos and other content for that purpose. They’ve already helped a many people. You’ll also have to learn the trading method. Again, that’s probably going to be easier for you than first teaching yourself to be a competent stock/company analyst who then has to decide when to buy. And generally, futures trading is far more affordable than stock trading!

One Response

  1. Very, very good article. I agree on both points: A) Stock trading is most usually a long-term investment effort, and 2) futures trading can be potentially very profitable in the near short-term and can be a relatively exhilarating and rewarding experience.

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