The Futures market is also a little more unreliable in terms of liquidity. For example, take the S&P 500 vs. Silver Futures. The S&P involves many more traders. This means there is more opportunity in the market to make proﬁts without “slippage.”
“Slippage” is deﬁned as a change in price that occurs due to a lack of participant reaction instead of an abundance of it. When these markets slip and there aren’t enough traders taking part, your trade must wait until the prices move far enough to pull you out completely. This creates a more likely result of huge losses and/or little proﬁt.
Okay, so how do you make money day trading?
Well, while Futures markets remain a great place to trade, please make sure you possess the correct knowledge and experience to correctly navigate the practice. A good place to start is to make sure you know about speciﬁc trade times and overnight margin requirements.
The best type of educator in a trading system will understand which market personally ﬁts your individual ﬁnancial situation and the leverage at which you should be trading. Find an educator that will work with you and not leave you scrambling to ﬁgure out the best situation to ﬁt your ﬁnancial needs!
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