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Futures are better for newbies


I think its easier for a newbie to start with futures trading. Here are my general reasons.

=Easier on my mind to trade 1-2 contracts then 2,000 shares
=Dont have to list all the buys/sells at tax time
=Dont need 25,000 in your account
=Focusing on one market day in and day out makes you a better trader
=Less margin requirements (500 dia is a lot more margin then 1 YM)
=Good market fills.. no worries of the market maker screwing you
=Very liquid..
=No uptick rule

There are more advantages but those are the ones i can think of now. I trade mainly the ym on a trading advisory service (yea sue me). I've finally stopped losing my shirt.. TZOO stole 10 grand from me. hehe

Matt
Perhaps for some, but the much higher leverage and $/tick can magnify problems for inexperienced traders.

In most cases it is better for someone to start with a simulator, then move to live trading using an ETF with small size. The initial goal is to gain realistic market experience without going broke in the process.

I do not recommend moving to live futures trading until you are consistently profitable in the ETF's. Saying this another way, if your losing money live-trading an ETF, you will lose it at least 5 times faster in the futures market (due to leverage).
Totally agree that simulation tools are a great way to start. Play with 'imaginary' money before you put your own on the table.

Also knowing your market, maximizing your profits, trading with the right mind set are vitally important aspects toward your success. Your profits are generated from someone’s loss. Tying in profits and capitalizing on profitable situations in order to squeeze every last cent out of every trade entered is the only way to trade so master the basics and help yourself