Different Ways to Exit Futures and Commodities Trades

May 13th, 2022 Newsletter

Where and how to enter a trade? How to define risk and implement the risk control? (stops? Option protection?) Where and how do I exit a trade, both in case of profit or in case of a loss.

This Week Educational Feature

Exiting a Trade might be more important than the entries….

“You must understand that there is more than one path to the top of the mountain.”- Miyamoto Musashi, A Book of Five Rings: The Classic Guide to Strategy

Futures and futures options trading is a challenging activity. Moreso for those traders who look to trading as an occupation. So much thinking, contemplating, planning goes into trading – related to the markets you’re trading, the strategies that get implemented, the possible risk/reward outcomes. For someone new to trading, seeing the sum total of all the parts may be a lot to take in. Veteran traders will tell you the full picture keeps changing and can be daunting often.

When trading goes well, the trader’s energy and overall outlook is powerful, optimistic and energizing for other aspects of life. When trading goes unsuccessfully, most traders feel the pain in many ways outside of the obvious financial consequences.

Fibonnacci extension

Whether you’re a day trader, a position trader, a spread trader, or an option trader, some of the mental challenges and the questions to go with them are constant:

  • Where, When and how do I enter a trade?
  • How do I define risk and implement any type of risk control, like placing stop orders, or implementing some sort of option protection?
  • Where and how do I exit a trade, both in the event of a profitable trade and an unsuccessful one?

Finish reading the Article along with chart examples

Few Ways to Exit a Trade

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* 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!

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