1. Day Trading 101: Tight Stops? Wide Stops? Which One Should I Use?
Entry signals are very important but just as important if not more is trade management.
By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP
This article was published on FinanceMagnates.com back in April but is defintely a timeless article.
Today I decided to touch more on an educational feature rather than provide a certain market outlook. Many of my clients and blog readers know that when it comes to short term trading I am a fan of adjusting your trading technique/ game plan according to your assessment of the type of trading day that is developing in front of you.
Many new and advanced traders spend HOURS on looking for entry signals. Back testing historical data, creating algorithms to use and much more. I know. I am one of these traders.
Trade management consists of many factors. Some are psychological and some are more mathematical and many are in between.
Some of the basic elements of trade management before even entering the trade are: What will my stop loss be**? will i use a stop loss**? What will my target be? will I use a target or just trail the trade if it goes my way?
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2. Hot Market Review - Strong Bounce in a Bearish Crude Oil Market
Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at www.jimwyckoff.com Click on image below to enlarge
The Nymex crude oil futures market on Thursday saw strong price gains that were mostly due to short covering and a technical bounce from an oversold market. However, if prices on Friday can show that important follow-through buying strength and produce a technically bullish weekly high close, that would be an early chart clue the market has put in a near-term bottom. But right now the crude oil bears remain in firm near-term chart control.
FN: Sep 2,5,10 Year Notes(CBT)
Sep Gold & Silver(CMX)
Sep Platinum & Palladium(NYM)
Sep Rough Rice(CBT)
LT: Aug Fed Funds(CME)
Aug Live Cattle(CME)
Sep RBOB & ULSD(NYM)
Aug Fed Funds Options(CME)
Sep Lumber Options(CME)
9:00 AM CDT - Construction Spending(Jul)
9:00 AM CDT - ISM Index(Aug)
4:00 PM CDT - Auto & Truck Sales(Aug)
FN: Sep Orange Juice(ICE)
LT: Aug Butter(CME)
Aug Butter Options(CME)
Aug Milk Options(CME)
6:00 AM CDT - MBA Mortgage Purchase Index
7:15 AM CDT - ADP Employment Change(Aug)
7:30 AM CDT - Productivity-Rev(Q2)
7:30 AM CDT - Unit Labor Costs-Rev(Q2)
9:00 AM CDT - Factory Orders(Jul)
9:30 AM CDT - API & DOE Energy Stats
1:00 PM CDT - Fed's Beige Book(Sep)
2:00 PM CDT - Dairy Products Sales
FN: Sep RBOB & ULSD(NYM)
6:30 AM CDT - Challenger Job Cuts(Aug)
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly
7:30 AM CDT - Trade Balance(Jul)
9:00 AM CDT - ISM Services(Aug)
9:30 AM CDT - EIA Gas Storage
3:30 PM CDT - Money Supply
7:30 AM CDT - Ave Workweek & Hourly Earnings(Aug)
7:30 AM CDT - Nonfarm Payrolls(Aug)
7:30 AM CDT - Unemployment Rate(Aug)
LT: Sep Canadian Dollar Options(CME)
Sep Currencies Options(CME)
Sep Live Cattle Options(CME)
Sep US Dollar Index Options(ICE)
Oct Cocoa Options(ICE)
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material 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.
*** 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!
RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.