Let’s talk about a term that gets thrown around a lot in investing circles, especially in the doctor's lounge or around the proverbial water cooler: futures or the futures market. (And spoiler: like most investing myths spread in the physician's lounge, this one is not a great idea either.)
You may hear someone say their advisor has them “invested in futures.” You may even hear someone say they dabble in it themselves. But if you stop and ask them what the futures market actually is, chances are, they’ll stumble through an explanation. And honestly, that says a lot.
Because like many complex-sounding financial concepts, the futures market is often wrapped in mystery. But when you unwrap it, it’s actually pretty straightforward—and in my opinion, not something most of us, especially busy professionals and physicians, should be getting into.
Let’s break it down. And spoiler alert: this isn’t an endorsement.
First: A quick futures market quiz
Here’s a fun multiple-choice question I kicked off the podcast episode with:
Uniquely, trading in the futures market can occur for how many hours a day?
A) 6 hours
B) 12 hours
C) 18 hours
D) 24 hours
Answer: D – 24 hours a day.
Unlike the traditional stock market, which has defined trading hours (and yes, pre-market and after-hours exist, but that’s a whole different story), the futures market is open 24/7. You can trade futures any time of the day or night. That sounds cool, right?
Well… maybe. We’ll get to that.
What is the futures market, really?
The futures market is essentially an auction market. And it’s been around for quite a while. In the past, it was literal humans shouting at each other in chaotic trading pits (think Wall Street movies). Now, it’s all electronic. But the core idea is the same.
Here’s what happens:
Buyers and sellers agree to trade futures contracts—these are legally binding agreements to buy or sell a commodity or financial instrument at a predetermined price on a specific future date.
Let’s say you’re a corn farmer. You’re worried that when your crop is harvested in six months, the price of corn might crash. So, you lock in a price now by selling a futures contract. You’re guaranteed that price in six months, no matter what happens in the market.
On the other side of the deal is a buyer—maybe a grocery company that needs corn and wants price certainty too. The idea is to eliminate uncertainty for both sides.
And from there, futures expanded from just agricultural goods to oil, interest rates, foreign currencies, stock indices—you name it.
So, who trades in this market?
Originally, this was mostly producers and suppliers—people who needed to actually deliver or receive goods. But today? It’s dominated by speculators.
These are investors (or “investors”) who don’t want barrels of oil or sacks of wheat delivered to their house. They're just trying to profit from price changes.
They’re betting that prices will go up—or down—and that they can sell their contract to someone else for more before it comes due. And yes, there’s a whole industry of financial advisors and “trading coaches” who claim to know how to profit from this.
Futures = Speculation, not investing
Here’s the heart of the issue. Futures trading is not investing. It’s speculation. Period.
And I don’t speculate with my money.
Why? Because true investing doesn’t require a crystal ball. Speculating does. Which is good, because my crystal ball stinks…
When you buy a futures contract, you’re essentially making a bet on where the market will be at a specific time in the future. You don’t know. Nobody does. You’re guessing.
If you’re right? You profit.
If you’re wrong? You lose—sometimes big.
There’s no steady compounding of returns. There’s no appreciation based on fundamental value. And there’s just market movement, often driven by factors way beyond your control. And let’s be real, none of us can predict where interest rates or oil prices or wheat prices will be three months from now.
Why I stick to boring, proven strategies
People ask me all the time: “Jordan, why don’t you get into more ‘exciting’ investments like futures or options trading?”
My answer? Because I don’t want to need a crystal ball to build wealth.
That’s why I invest in low-cost index funds that track the overall market. That’s why I invest in cash-flowing real estate, where I can analyze the numbers and see the expected return based on real data.
Are those investments risk-free? No. But they are backed by historical data, predictable patterns, and long-term growth. They allow me to build wealth steadily, without guessing games.
The futures market? It doesn’t offer that.
It’s exciting. It’s fast. It can even be addictive. But it’s not consistent, and it’s not reliable—especially not for long-term financial freedom.
The house almost always wins
Yes, some people make money in the futures market. But more people lose. As I share here, the numbers prove active investing like this just does not work…
And here’s the kicker: even those who make money rarely do so consistently. It’s a few big wins, followed by losses. The adrenaline makes it feel like you're in control. But the odds are against you.
It’s like going to the horse track and putting your retirement fund on a 12-to-1 long shot. It might feel like strategy. But it's gambling.
And I don’t base my financial future—or my family’s—on a roll of the dice.
What should you do instead?
Here’s what I recommend to physicians, high earners, and really anyone looking to build sustainable wealth:
- Build a solid written financial plan. One that doesn’t rely on predictions or perfect timing. Here is my most recent written plan.
- Invest in index funds. Use tax-advantaged accounts. Keep fees low. Let compounding work its magic. Here is my full investment portfolio.
- Explore real estate. If you have the time and interest, invest in properties that produce steady cash flow. You can do this either actively like me or passively in a more hands-off approach.
- Ignore the noise. Water cooler conversations about futures, crypto, penny stocks, or whatever the latest fad is that is better avoided than invested? Smile, nod, and stay in your lane.
Because boring is beautiful when it comes to money. Predictability and simplicity win over time.
Final thoughts
So that’s the deal with the futures market. Is it a real thing? Absolutely. Can people make money trading futures? Sure. Should you do it? In my honest opinion: no way.
Stick to the basics. Build a financial plan that works with the odds—not against them. And remember, success doesn’t come from being clever or lucky. It comes from being consistent and smart over time!
To learn more, check out my best-selling book, Money Matters in Medicine!
What do you think? Have you invested in the futures market? How did it go? Would you do it again? What does your financial plan call for you to invest in? Let me know in the comments below!
