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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: MMK who wrote (11221)	3/14/1999 11:44:00 AM
From: Teresa Lo	Read Replies (1) \| Respond to of 56535

The financial futures market is geared primarily toward traders, and as such, is not really something for the buy and hold type of investor. Lately, it seems to me that most of the online investors are actually attempting to trade their accounts at a fast and furious rate, so I suggest that they should consider the mini S&P futures contract for several reasons. First the initial margin is low, around $4000. Second, it is very liquid, so the difference between bid and ask is very small. Third, you don't have to deal with market makers. Fourth, the commission is low. Fifth, considering many internet stocks move at least 10% a day, that's like the Dow having daily swings of 1,000 points. Add that to the fact that most of these net stocks have a very small float, if you find yourself on the wrong side of the market, you can get pummelled. In the long run, doing all the homework, spending hours a day after work scanning the net for new stocks, is dangerous. How does one perform complete due diligence on a few stocks each day, especially Bulletin Board ones that are not required to file any type of information? How long can one keep up to trading extreme volatility? So I gave up on stocks after trading them for 14 years and moved to S&P futures. Now I have all the free time I need and no more stress or aggravation.