You might wonder why I bother to trade stocks and commodities. Mostly I do it because I find it fascinating. It’s a great hobby. You have to be careful because, at least at first, it can cost you money. If you’re careful you can get to the point where you won’t really lose much, and if you’re lucky you might even make some money. Can you make a living doing it? Answer in my next post.
ETFs: Between stocks and mutual funds in many ways. Lots of opportunities to get into domains that other vehicles don’t allow. If you want to trade futures contracts, for instance, but you don’t have a futures account, you can probably find an ETF that tracks the future you’re interested in.
Stocks: Opportunities abound in value and growth stocks. Many opportunities for setups. Disadvantage is that they can be volatile — some stocks may even stop trading or completelly disappear overnight.
Options: Complex instruments that provide opportunities if you know what you are doing. I am not an expert on options and do not trade them.
Futures: My favorite trading instruments are futures. I focus on five future: Nasdaq100, Oil, Corn, Treasury Bonds, and the Euro Future. More on this to come.
Forex: Easily traded with small cash accounts. Many possibilities, but I tend to stay out of this volatile market (except for trading the Euro future)
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