Ok, terrific F1 race just over, love those races, REAL racing machines with REAL drivers. Sure beats nascar driving grocery carts round and round and smashing up. Ok, ok, back to trading. The advantage of trading commodities, aka, FUTURES is quite easy if compared to the average stock trader. The average stock trader is a "one trick pony". Stocks go up they get excited, stocks go down they get gloomy. Sure hedge funds etc can go AC/DC but your average stock trader does not. (it is not in their interest to see their individual or stock fund go go down) Futures is trading with a reverse gear and ability to turn around. Currency trading through futures works. FX is not trading futures, FX is a fad for retail money traders. PS: even without the 60/40 rule . FUTURES still are the way to go. Tax advantages , disadvantages is just a sidenote in the bigger picture. Do what you do best and let the tax bill fall where it will. If you have a problem with taxes that will detract from what you need to do before the question of taxes arrives. To win you need to put presssure on yourself to perform. taxes are what every honest business man/women must pay to play.
Taxes are meaningless when you set higher and higher goals. I do this: I set a daily nut as a minimum, time that by 240 trading days a year if no vacation. Times that relative to average cars traded, ...etc, etc. Deduct a high nut for taxes and dribble it all down to what you have as spending mad money day. now reflect that figure to what you made when you had a REGULAR job and were a simple grunt worker. Ok, good weekend all, . <a href="http://www.sweetim.com/s.asp?im=gen&ref=11" target="_blank"><img src="http://content.sweetim.com/sim/cpie/emoticons/000201DA.gif" border=0 ></a> Set a higher goal next week. Pressure yourself. Do not forget to set that goal higher and higher.. <a href="http://www.sweetim.com/s.asp?im=gen&ref=11" target="_blank"><img src="http://content.sweetim.com/sim/cpie/emoticons/000202D7.gif" border=0 ></a>
Traders trade products and asset classes that they can make a living in. for some its stocks, others its futures,