Day trading has always been an intriguing challenge for me. From 2021 until now, I’ve been exploring the arena of day trading with options and futures. I liked the idea of not holding the trades for more than a few hours to reduce any potential overnight risk. I learned there are many ways to make money in the US stock market and saw the potential of day trading as a method of replacing my income one day. After a couple of years of trial and error, I’ve finally found a trading strategy that works really well for me. On this page and in future blog posts, you can follow my journey in day trading. All the things I’ve learned to grow my account will hopefully help grow your account as well.
Getting Started
What are Futures?
Futures are contracts that were created for the agricultural industry in order for farmers to secure a good price on produce and meat. Kind of like a raincheck. As the buyer of the raincheck, you are obligated to buy the product at the set price on the expiration day that’s stated in your contract. As the seller, you are required to deliver the product on the expiration date in exchange for money.
As the futures market became popular, non-food products were also added to the exchange, such as energy, commodities, stock market index, currency, and precious metals. Speculators and traders use these products to invest, trade, and make money.
The basic trading philosophy of stocks, options, and futures is simple. In order to make money, you must buy low and sell high, or sell high and buy low.
Both futures and options have contracts that expire, and each contract is leveraged, so you have the ability to take more risk at a lower price. Where it differs is that futures are a lot less complicated compared to options. Market volatility and expiration dates do not affect the underlying value of the contract. Where the money is made is by trading those contracts and not holding them until expiration.
Fun fact: If you bought and held an agricultural futures product, like corn, and let the contract expire, you will be expected to pay for the corn, and it will be ready for you to pickup at one of the delivery terminals.
Why use Futures in Day Trading?
Trading options is accessible but has a steep learning curve and usually requires at least $2,000 USD to start. Futures are easier to understand, and with online prop firms, you can start trading with just $50–$80 USD per month. Prop firms let you trade using the company’s money in exchange for 20% of your profits. This setup keeps your risk low while giving you the potential to earn big — enough to replace a full-time income.
Which Futures products Trade?
My favorite futures product is the NASDAQ index, which has been around since 1971 and focuses heavily on tech stocks. Originally only accessible to large institutions, the E-mini NASDAQ (NQ) and the Micro NQ (MNQ) were created for smaller accounts. The NQ moves dynamically, offering plenty of trading opportunities. While the minis suit larger accounts, the micros shouldn’t be underestimated — with consistency and multiple contracts, they can generate a healthy income.
Which Prop Firm to use?
Keep your goals realistic. A $150,000 account may sound exciting, but a $9,000 profit target can be intimidating for beginners. Since prop firms charge monthly fees until you pass their evaluation, start small — treat it like a business and scale up over time. I recommend a $10,000 or $25,000 account.
Below is the prop firm I’m currently trading with and would recommend for others to use:
Note: Always trade with a simulation account before purchasing an account with a prop firm. All prop firms have major sales during holidays, always purchase at a discounted price
My Plan: To have one account fully funded account by 60 days. Then continue to purchase more accounts to increase my profits.
My favourite strategy to use is the 15min Opening Range Break out. See my blog post here on how I trade to pass my evaluation accounts.
Happy Trading
-The Wealthy Sheep 👩🏻💻
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