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</x-html>From ???@??? Sat Jun 24 06:48:16 2000
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From: "Earl Adamy" <eadamy@xxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
References: <001601bfdd43$9c053ec0$9821d8d4@xxxxx>
Subject: [RT] Re: Stocks and futures
Date: Sat, 24 Jun 2000 06:11:05 -0600
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Reply-To: eadamy@xxxxxxxxxx
Status:
I traded cup and handle bottoms in stocks for some years routinely
picking off 10% profit in a week or two, then my screens started to turn
up next to nothing. Shorting stocks is difficult (down-tick rule and
shortage of stock to borrow in some issues) and more risky (broker can
call in borrowed stock). Finally I started seeing stocks take 25-50%
haircuts on news and knew I needed to diversify. I switched to S&P
spiders but profits were much smaller at 2-3% because I had diversified
favorable event risk as well as unfavorable i.e. my ability to pick
stocks no longer gave me an edge. I switched to equity futures which
offer more leverage but also much more volatility requiring larger
account and wider stops. Then I looked around and saw the diversity of
futures contracts to be traded: agricultural, industrial, and financial.
Also futures trades, no matter the duration, are taxed as 60% long term
capital gains.
Bottom line - there are significant advantages to futures trading,
however it is a tougher game with more risk, higher capital
requirements, and longer learning curve.
Earl
----- Original Message -----
From: "Gram" <gramario@xxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, June 23, 2000 12:48 PM
Subject: [RT] Stocks and futures
> May I attempt to start a new thread: anyone got anything to say on the
> advantages/disadvantages of trading stocks as opposed to futures at
this
> particular time?
> Gram.
>
>
>
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