Trading levels and reports for Sept. 18th
*To be removed, please reply with remove daytrading in subject line
Dear Trader,
In today's letter:
1. Trading 101
2. Trading Levels
3. Economic reports
" Day Trading Success - The Key is Survival "
By Mike Reed
A lot of traders, especially new traders, are looking for
a list of simple trading rules to follow. "Rules-based
trading" is better than an undisciplined approach, that's
for sure. But simple mechanical rules have not worked for
me. Like every successful discretionary trader, I've learned
to recognize a group of high-probability situations (or
setups) that put the odds on my side. In a way, these setups
are "rules", but they are essential.
a list of simple trading rules to follow. "Rules-based
trading" is better than an undisciplined approach, that's
for sure. But simple mechanical rules have not worked for
me. Like every successful discretionary trader, I've learned
to recognize a group of high-probability situations (or
setups) that put the odds on my side. In a way, these setups
are "rules", but they are essential.
Most new traders tend to focus just about all their time and
energy on finding nearly perfect "setups", but trade setups,
even very good ones, are *not* the key to successful
trading. It's the *way* you trade your setups that keeps
your losses smaller than your gains. And this is the single
most essential key to trading success. To me, the process of
limiting losses is more than just money management...it is
survival.
energy on finding nearly perfect "setups", but trade setups,
even very good ones, are *not* the key to successful
trading. It's the *way* you trade your setups that keeps
your losses smaller than your gains. And this is the single
most essential key to trading success. To me, the process of
limiting losses is more than just money management...it is
survival.
I can't give you a list of mechanical survival rules that
will take the place of experience and make you a successful
trader overnight, but if you stick to the following
principles in your trading, you'll be on track. You'll be
doing just about the opposite of the crowd, and you'll
eventually learn to limit your losses. Limiting your losses
is the only way I know to make money in this business.
will take the place of experience and make you a successful
trader overnight, but if you stick to the following
principles in your trading, you'll be on track. You'll be
doing just about the opposite of the crowd, and you'll
eventually learn to limit your losses. Limiting your losses
is the only way I know to make money in this business.
The following guidelines will sound radical, but they have
guided me in making my living from trading for many years.
guided me in making my living from trading for many years.
1. If a trade doesn't go your way within the first one to
five minutes, get out. I usually get out within one or two
minutes as soon as my perceived edge is gone.
five minutes, get out. I usually get out within one or two
minutes as soon as my perceived edge is gone.
2.If a trade goes against you in the first few seconds,
begin drawing in your hard stop and/ or your target, trying
to get out of the trade at break even.
begin drawing in your hard stop and/ or your target, trying
to get out of the trade at break even.
3. Never let your hard stops get hit. When it happens, you
may want to take a break and get some fresh air.
may want to take a break and get some fresh air.
4.Hard stops are adjusted to market conditions. At the
moment (July 6,2005) I am using 1.50 point hard stops on the
SP futures.
moment (July 6,2005) I am using 1.50 point hard stops on the
SP futures.
5. Never move your hard stop away from your entry point,
hoping that a bad trade will turn around.
hoping that a bad trade will turn around.
6. If you find yourself *hoping* as you trade, it is a clear
sign that you are not following good survival (money
management) principles.
sign that you are not following good survival (money
management) principles.
It will be impossible to put these principles together
without a set of high-probability setups. Without good
setups, trading is just a flip of the coin.
without a set of high-probability setups. Without good
setups, trading is just a flip of the coin.
Mike Reed is author of TradeStalker's RBI Trader's Updates.
He has been trading the Market for 24 years. His support and
resistance numbers have been published on the internet since
1996. Mike's nightly support and resistance zones are
specific and incredibly accurate. He offers an unlimited
free trial of his nightly TradeStalker RBI Trader's Updates.
http://www.TradeStalker.com
He has been trading the Market for 24 years. His support and
resistance numbers have been published on the internet since
1996. Mike's nightly support and resistance zones are
specific and incredibly accurate. He offers an unlimited
free trial of his nightly TradeStalker RBI Trader's Updates.
http://www.TradeStalker.com
LEVELS:
| Contract (Dec.. 2006) | SP500 (big & Mini) | Nasdaq100 (big & Mini) | Dow Jones (big & Mini) | Mini Russell |
| Resistance 3 | 1342.90 | 1684.00 | 11770.00 | 747.00 |
| Resistance 2 | 1339.70 | 1675.00 | 11737.00 | 743.00 |
| Resistance 1 | 1335.90 | 1664.00 | 11696.00 | 739.00 |
| Pivot | 1332.70 | 1655.00 | 11663.00 | 735.00 |
| Support 1 | 1328.90 | 1644.00 | 11622.00 | 731.00 |
| Support 2 | 1325.70 | 1635.00 | 11589.00 | 727.00 |
| Support 3 | 1321.90 | 1624.00 | 11548.00 | 723.00 |
| Contract (Dec. 2006) | Dec. Gold | Euro | Dec. Ten Years | Dec. US Bonds |
| Resistance 3 | 600.7000 | 1.2894 | 107 20/32 | 111 17/32 |
| Resistance 2 | 594.6000 | 1.2848 | 107 15/32 | 111 10/32 |
| Resistance 1 | 588.8000 | 1.2787 | 107 7/32 | 110 28/32 |
| Pivot | 582.7000 | 1.2741 | 107 2/32 | 110 21/32 |
| Support 1 | 576.9000 | 1.2680 | 106 26/32 | 110 7/32 |
| Support 2 | 570.8000 | 1.2634 | 106 21/32 | 110 |
| Support 3 | 565.0000 | 1.2573 | 106 13/32 | 109 18/32 |
REPORTS (EST): Provided by www.tradethenews.com audio news and interactive research directly from the pits
Monday, Sep 18th, 2006
Economic
08:30am Q2 Current Account Balance (last -$208.7)
09:00am Jul Net Foreign Security Purchases (last $75.1B)
01:00pm Sep NAHB Housing Market Index (last 32)
Events
Transmissible Spongiform Encephalopathies Advisory Committee meets at 8:00am. BofA Fall Investor Conference in SF through 9/21. ADP, AHS, IVTA, PRAI analyst meeting. TGT Sep sales update. VIVO replaces MROI in S&P Smallcap 600 after the close of trading. Treasury Secretary Paulson travels to China for a series of meetings.
Earnings
Before the Open: SMTS. After the Close: None.
Note all time are EST. ANY AND ALL TIMES AND DATES ARE SUBJECT TO CHANGE WITHOUT NOTICE. INFORMATION HAS BEEN TAKEN FROM SOURCES DEEMED TO BE RELIABLE, BUT NO ASSURANCES CAN BE MADE TO THE ACCURACY OF ANY OF THIS INFORMATION.
This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!
Sincerely,
Ilan Levy-Mayer, M.B.A
Vice President
Cannon Trading Co Inc.
http://www.cannontrading.com
http://www.E-Futures.com
ilan@cannoncapital.com
Yahoo IM ilanlevy1970
310-859-9572
800-454-9572
Fax 310-859-0547
9301 Wilshire Blvd. Suite #614
Beverly Hills, Ca 90210
The finest compliment I can receive is a referral from a trusted client.
* Important Please Note:
Trading commodity futures and options involves substantial risk of loss.
The recommendations contained in this letter is of opinion only and does not guarantee any profits.
These are risky markets and only risk capital should be used.
Past performances are not necessarily indicative of future results.
posted by Cannon Trading at 1:18 PM
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