As the second largest economy in the world, there’s a plethora of opportunities for investors and day traders braving the waters of US. Is this your first time hearing these terms? Investopedia explains that day trading is “an investor who attempts to profit by making rapid trades intraday while Investing is “the act of committing money or capital to an endeavour (a business, project, real estate, etc.) with the expectation of obtaining an additional income or profit.” Here, we’re going to attempt which one is best suited for you in the United States.
Day Trading – Before we go on, we encourage you to attend any courses from a well-established trading academy. In doing so, the time you’ll be spending from studying can be reduced drastically. Moving on, day trading in the United States may be both good and bad for you. Right now, the most ideal market to day trade is the futures market specifically, the e-mini market. When compared to securities, vehicles, etc., day trading e-minis wins by default. That’s because it has a lot of advantages and because it requires a small capital. Excluding currency trading, e-mini has the lowest capital requirement and the safest type of financial vehicle for beginners.
Investing – If you can afford to spend a considerable amount of cash and is willing to wait several months or years to earn profit, then investing is best suited for you. The good thing about investing is that the risks are very low compared to the former. Needless to say, the ROI is also more robust than day trading. Stocks and bonds are favoured by most US investors. However, monitor the markets when investing US stocks and bonds as they’re more volatile than they were before.
The bottom line; It all comes down to your preferences, character, and risk tolerance. For aggressive individuals who want to earn extra, day trading is ideal while for conservatives capable of spending a good sum of money, look for a safe investment option.