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Hi Matt,
there are quite a few things to think about. For starters, taxes are only a
problem if you make some money! Some may find it easier to do it with
stocks. It's not too hard to find a stock that will dramatically outperform
the market (maybe something in slightly less of a downtrend than qcom :-)).
Also as Earl indicated your account may be a bit small for futures. You
could trade an emini with the "blue bar" signal (key reversal off a low on
an INcrease in volume, as happened on 5/24) but this could draw down by a
couple thousand right off the bat. Depends on the accuracy of the trade and
your risk tolerance. This trade particular is pretty reliable but it can
scare the hell out of you. It's entirely possible to get squeezed out at the
low..
All things being equal the tax consideration makes sense, but all things may
not be equal. Some people can trade stocks but are horrible at futures, some
are the other way around. Dont' forget about the long-term compounding
theory. There are high quality tech stocks that go up year after year as the
economy grows, and there are people who keep buying them year after year,
compounding the profits. I have seen people make millions this way. Actually
this is the ONLY way i've seen it done, although have read about other
methods in books. Don't quit your day job!
best regards
phil
> > Phil,
> > I was thinking about what you told me before regarding the 60%-40%
> > short term/long term in futures for taxes regardless of the holding
> > period, where as stocks are 100% short term gain if held for less
> > than 1 year, and 100 long term if helf for over a year, so, do you
> > think it would be smarter to close my small ameritrade account
> > ($16,000) which I only hold 2 leading stocks in (qcom, itwo) and open
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