Learn To Trade Futures

The more you know about futures and commodities trading, the better you can determine if opening an account is right for you.

The materials below will provide an introduction to the major concepts, terminology, and mindsets critical to futures trading.

We have found the following concepts to be very important. Take a moment to familiarize yourself with this list before reading the more in-depth booklets below.

Learn to Trade Futures: Basic Guidelines

1. Use risk control. Poor money management and too many correlated trades lead to bad results.
2. Make rational bets.
3. Risk 1-5% of your portfolio on a single trade.
4. Don't wish. Don't hope. Diagnose the trading process.
5. Decide on an exit point before you put on a trade.
6. Cut losses. Ride winners. Close positions you are uncomfortable with.
7. Stick to your own style.
8. Don't over-trade.
9. Use stops.
10. Discipline. Imagination with discipline.
11. Keep the money you make. It's hard to make it.
12. Keep a log of what you do. Observe and think about how you can improve.
13. Expect the unexpected. Expect the extreme. Don't be too tied to history.
14. Use different strategies to avoid having all your orders going in at one point.
15. Don't average losses.
16. Decrease your trading volume when you trade poorly.
17. Increase your trading volume when you trade well.
18. Play defense, not offense.
19. Honor your risk point.
20. Don't get emotionally involved with your positions.

Now that you have explored these basic futures trading strategies, take the time to read through the following booklets from very reliable sources to continue to learn to trade futures.

If you would like assistance call
1-800-454-9572

Learn To Trade Futures: Library

1

A Guide to Understanding Opportunities and Risks in Futures Trading

A booklet that provides the fundamentals of futures trading for potential investors.

2

The Story Behind the Financial Integrity of the U.S. Futures Markets

A leaflet outlining the reasons behind the continuing and impressive record of financial soundness in the U.S. futures industry.

3

Glossary of Futures Terms

A pamphlet that defines many of the terms used in the futures industry.

4

50 Important Rules often Violated by Futures Traders

5

Buying Options on Futures Contracts: A Guide to Uses and Risks

A booklet that provides the fundamentals of trading options on futures contracts for potential investors.

6

Trading in the Retail Off-Exchange Foreign Currency Market — What Investors Need to Know

This booklet presents an overview of the retail off-exchange foreign currency market and provides other important information that investors need to know before they invest in the off-exchange foreign currency market.

Learn To Trade Futures: Next Steps

Open a free demo account and practice your trading!

To start your free 30 day simulated trading, fill out the form on the right or contact us at 800-454-9572

© Copyright 1996-2009 Cannon Trading Co. Inc. All Rights Reserved.

Cannon Trading Co. Inc. is registered with the Commodity Futures Trading Commission and a member of the National Futures Association.

Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Questions? Please contact us at 800-454-9572 or online using our contact form.

Cannon Trading Co. Inc.
9301 Wilshire Blvd, Suite 515
Beverly Hills, CA 90210