March 22, 2013 - Issue #678

In This Issue

1. Top 50 Trading Rules: The Most Common Pitfalls To Avoid When Trading Commodity Futures
2. Hot Market Review - US Dollar Index
3. Economic Calendar

1. Top 50 Trading Rules - The Most Common Pitfalls To Avoid When Trading Commodity Futures

Five hundred experienced futures brokers were asked what caused most futures traders to lose money. Their answers reflected the trading experience of more than 10,000 futures traders. You may recognize some of your strengths and weaknesses. Many of the reasons given are very similar from broker to broker. The repetitions stand to demonstrate that, alas, many futures traders lose money for many of the same reasons. Perhaps the statements of these experienced brokers can help you in the sometimes fickle, often intricate, and always interesting marketplace of futures trading.

Here is what they said.

1. Many futures traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they "second guess" it and don't stick to it, particularly if the trade is a loss. Consequently, they overtrade and use their equity to the limit (are undercapitalized), which puts them in a squeeze and forces them to liquidate positions. Usually, they liquidate the good trades and keep the bad ones.

2. Many traders don't realize the news they hear and read has, in many cases, already been discounted by the market. Download the PDF and find out what they said.

2. Hot Market Review - US Dollar Index

U.S. Dollar Index Bulls Remain in Firm Technical Control

From our friend Jim Wyckoff

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 U.S. dollar index is a basket of six major currencies weighted against the greenback. The dollar index is presently in a steep seven-week-old uptrend and this week hit a 7.5-month high. The dollar is being supported by some improving U.S. economic data recently and by safe-haven buying of the dollar and U.S. treasuries. If the European Union and Cyprus financial crisis escalates, look for even stronger demand for the U.S. currency. The dollar bulls are in firm near-term technical command, which means the path of least resistance is likely to remain sideways to higher in the near term.

3. Economic Calendar

Source: Moore Research Center, Inc.

* 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!