How Should Traders Confront Risk in Trading by Cannon Trading?

April 8th, 2016 Newsletter

RISK, it's the most important four letter in your trading. Gold bulls hang in tough.

April 8th, 2016 - Issue #824

In This Issue

1. Trading 101: Confronting RISK
2. Hot Market: Gold Market Bulls Continue to Hang Tough
3. Economic Calendar


It is a four letter word. As traders it is something that we thrive on and dread.

We chase and fear. We look for and look to avoid. It is RISK. Without it, there is no opportunity for profit. Without it trading lacks potential. With it, failure and heartache are the consequences when it is abused.

Risk itself is not a bad thing. When it is misused by traders, it becomes a problem. Controlled risk presents traders with exciting and profitable opportunities. Uncontrolled, it brings the end to the dreams and careers of many traders.

How should we as traders confront risk? The first step is to respect it.

Realize the damage it can do to our account equities when it is abused. The two most important tools that we have to control risk are stops and position size. Read More.....


Read RISK article

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2. Hot Market: Gold Market Bulls Continue to Hang Tough

From our friend Jim Wyckoff at

Click on image below to enlarge

gold futures; The gold market has backed down from the recent high, but the bulls are showing enough power to keep the overall near-term technical advantage. There are a lot of market pundits that are saying gold's best days are gone and that the yellow metal will resume its bearish ways soon. I'm not in that camp. My bias is that the gold market is leading a recovery in the raw commodity sector--albeit a bumpy recovery in the sector. It's also my bias that in the coming few years gold prices will climb to a new record high above $2,000.00 an ounce.

3. Economic Calendar

Source: Moore Research Center, Inc.

Date Reports Expiration & Notice Dates

FN: May Sugar-16(ICE)
7:30 AM CDT - Export(ex-ag) & Import(ex-oil) Prices(Mar)
11:00 AM CDT - WASDE Report & Crop Production
1:00 PM CDT - Treasury Budget(Mar)

6:00 AM CDT - MBA Mortgage Purchase Index
9:30 AM CDT - API & DOE Energy Stats
1:00 PM CDT - FOMC Mintues
2:00 PM CDT - Diary Products Prices

7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly
7:30 AM CDT - Core CPI & CPI(Mar)
9:30 AM CDT - EIA Gas Storage
3:30 PM CDT - Money Supply
LT: Apr Lean Hogs(CME)
Apr Lean Hogs Options(CME)
7:30 AM CDT - Empire Manufacturing(Apr)
8:15 AM CDT - Capacity Util & Industrial Prod(Mar)
11:00 AM CDT - NOPA Crush
3:00 PM CDT - Net Long-Term TIC Flows(Feb)
LT: Apr Nikkei Options(CME)
Apr E-Mini Dow Options(CME)
Apr E-Mini S&P 500 Options(CME)
Apr E-Mini NASDAQ Options(CME)
Apr Russell Options(CME)
Apr S&P 500 Options(CME)
May Cotton Options(NYM)
May Crude Lt Options(NYM)
May Orange Juice Options(ICE)
May Sugar-11 Options(ICE)
FN=First Notice, OE=Option Expiration, LT=Last Trade

* 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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