your stock trades as a stock when the stock market is open.
Futures are another way of trading things (stocks, stock indexes, etc. etc). Because they are an alternative market for the same or similar instruments (stocks, for example), their prices are indicative of the price of those assets (in the stock market, for example).
You could also trade stock futures and stock index futures if you were up for it, but it's generally a tool best left for professionals. and the entry fee is a bit high (as a it should be), because it's a much riskier market.
“u could also trade stock futures and stock index futures if you were up for it, but it’s generally a tool best left for professionals. and the entry fee is a bit high (as a it should be), because it’s a much riskier market.”
Thanks a lot for explaining that. Now I know that which I didn’t know before. It’s always good to learn a new tidbit of info. So, I am not a future, but just a simple stock, LOL!
“You could also trade stock futures and stock index futures if you were up for it, but it’s generally a tool best left for professionals. and the entry fee is a bit high (as a it should be), because it’s a much riskier market.”
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As someone who has traded futures contracts for more than twenty years, I must respectfully disagree with two of your statements, to wit: “the entry fee is a bit high” and “it’s a much riskier market.”
I am a trader, not an investor. Thirty minutes is long term for me. I take advantage of short term market behavior. In my view, unless you are hedging a portfolio, you are a fool if you hold open positions in these contracts after the close of “regular hours” trading.
That makes me a “day trader.” In my view, day trading individual stocks is a fool’s game as well. But, if you’re going to do it, you need at least $25,000 in your brokerage account, by government edict. You can trade electronic equity index futures with a small fraction of that.
As to market risk, that’s why stop loss orders exist. In a liquid market, (the S&P 500 emini trades 100’s of thousands if not millions of contracts during regular trading hours, practically every day) with proper capital management, reward/risk ratios almost always exceed 1 and frequently are better than 2 - 3. I have two completed trades today, so far. The first one was good for about a $170 profit, per contract. The second one for more that $900, both with real risks of a little more than $100. Both were longs, btw, and exited before 09:00 Chicago time.
There are a lot of misconceptions about the futures markets and it is possible to lose a lot of money in them. They are not for everyone, but with proper education and discipline, the electronic index futures markets are the most egalitarian market available for the “outsider,” if he/she is willing to devote a full time effort to them.