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Most
investors might wonder about the wisdom of trading
futures for a living. No doubt a large number of investors
do manage their entire portfolios through futures.
However, it is always important to remember that it
is not a wise idea to have all the eggs in one basket.
Therefore,
futures trading would ideally form a part of the entire
portfolio, and the risk must be spread over other
areas of investments as well. Futures are safer than
investing directly in equities since it is a risk-hedging
tool. However, call and put options are better options
when it comes to hedging risks.
If
one is choosing between investing in equities and
trading futures for a living, then the latter would
definitely be a better choice. However, investment
in options is also a suggested plan of action for
a more reliable and balanced portfolio of investment.
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