Equities or Futures (derivatives)

The financial market players are divided into 2 groups namely the stocks and futures. It is easier to convince people to join the stock market than the derivatives market. It is widely touted that derivatives or futures market is speculative and dangerous. While stocks are "investments". I do not understand when someone buy and sell investment assets, do we call that investment or speculation???

The only dangerous if that is what you can to call it about derivatives is the leveraging. Yes, there is a thing call margin financing (leveraging) for stocks. The difference between the leveraging for derivatives and stocks is the MAGNITUDE of leveraging.

Future derivatives allow an exposure to the market versus stocks specific.

I was hyper actively trading stocks from 1990 till 2006 before I make a switch to hybrid of stocks and future index. Subsequently from 2008 till now I only focus on Futures/Options for Commodities, Currencies, Oil and Gold. I still go an use my margin stocks account when I feel there is a bargain. It is super long wait. Unlike Futures, there is action every second compare to stocks.

Once you graduate to Futures market, your interest in stocks will wane