March 2, 2012 - Issue #625
In This Issue
1. 8 Steps to Successful Futures Day Trading
2. Jim Wyckoff's Hot Market - Commodity Bulls Enjoy General Sector Uptrend
3. Economic Calendar
Featured Articles This Week
a. Learn How to Apply Fibonacci Retracements to Your Trading
b. A Two-Bar Pattern that Points to Trade Setups
c. Do Low Interest Rates Power Stocks Higher?
1. 8 Steps to Successful Futures Day Trading
My name is Ilan Levy-Mayer and I am the Vice President and Senior Futures Broker at Cannon Trading. I came up with the following personal observations after serving online traders worldwide for more than 14 years.
Today we have provided the following steps as guides to progress, and are not necessarily in sequential order. Some of them are always required, but each futures trader is different and will relate to these stages in their own ways. While attempting to learn and progress, one must keep in mind that futures trading is risky and can involve significant losses.
Read a small portion of the article here:
1. Education
Hopefully if you are already trading you have completed your initial education: contract specs, trading hours, futures brokers, platforms, the opportunities as well as the risk and need to use risk capital in futures, and so on. Understanding this information is essential to futures trading. The second type of education is ongoing: learning about trading techniques, the evolution of futures markets, different trading tools, and more.
2. Find a System
I am definitely not advising you to go on the web and subscribe to a "black box" system (using buy/sell triggers if don't know why they are being generated). What I am advising is developing a trading technique: a general set of rules and a trading concept. As you progress, you may want to put the different rules and indicators into a computerized system, but the most important factor is to have a focus and a plan. Don't just wake up in the morning and trade "blank."
3. Survival
This is the key! Do what you need to do in order to survive this brutal business and give yourself the chance of being here down the road with more experience and a better chance of success. Survival is probably the biggest key for beginning traders. There is a saying in this business: "live to trade another day." It is so true!
Want to see the rest? Click here and fill out the form at the top of the page to download and read our full guide which outlines some important futures day trading concepts.
2. Jim Wyckoff's Hot Market - Commodity Bulls Enjoy General Sector Uptrend
The Continuous Commodity Index (CCI) is a basket of 17 major raw commodity futures prices rolled into one composite price index. It's an excellent gauge of the overall price trend in the raw commodity sector and of the general trend in commodity price inflation. See on the daily CCI chart that prices are in a 2.5-month-old uptrend. The year 2012 has been generally good to the commodity market bulls, so far. As long as the daily CCI chart continues to trend higher, most commodity market bulls are likely going to enjoy successes.
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 Jim Wyckoff
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 3/02 Fri |
7:30 AM CST - Dairy Products Prices | FN: Mar Heating Oil(NYM) Mar RBOB Gasoline(NYM) LT: Mar Live Cattle Options(CME) Apr Cocoa Options(ICE) |
| 3/05 Mon |
9:00 AM CST - Factory Orders(Jan) 9:00 AM CST - ISM Services(Feb) | |
| 3/06 Tue |
||
| 3/07 Wed |
6:00 AM CST - MBA Mortgage Purchase Index 7:15 AM CST - ADP Employment Change(Feb) 7:30 AM CST - Productivity-Rev(Q4) 7:30 AM CST - Unit Labor Costs-Rev(Q4) 9:30 AM CST - API & DOE Energy Stats 2:00 PM CST - Consumer Credit(Jan) | |
| 3/08 Thu |
6:30 AM CST - Challenger Job Cuts(Feb) 7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - USDA Weekly Export Sales 9:30 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply | |
| 3/09 Fri |
7:30 AM CST - Dairy Products Prices 7:30 AM CST - WASDE Report & Crop Production 7:30 AM CST - Ave Workweek & Hourly Earnings(Feb) 7:30 AM CST - Nonfarm Payrolls(Feb) 7:30 AM CST - Trade Balance(Jan) 7:30 AM CST - Unemployment Rate(Feb) 9:00 AM CST - Wholesale Inventories(Jan) | LT: Mar Canadian Dollar Options(CME) Mar Currencies Options(CME) Mar US Dollar Index Options(ICE) Apr Coffee Options(ICE) |
| 3/12 Mon |
1:00 PM CDT - Treasury Budget(Feb) | LT: Mar Orange Juice(ICE) |
| 3/13 Tue |
7:30 AM CDT - Retail Sales(Feb) 9:00 AM CDT - Business Inventories(Jan) 1:15 PM CDT - FOMC Rate Decision(Mar) | |
| 3/14 Wed |
7:00 AM CDT - MBA Mortgage Purchase Index 7:30 AM CDT - NOPA Crush 7:30 AM CDT - Current Account Balance(Q4) 7:30 AM CDT - Export & Import Prices(Feb) 9:30 AM CDT - API & DOE Energy Stats | LT: Mar Corn(CBT) Mar Wheat(CBT) Mar Oats(CBT) Mar Rough Rice(CBT) Mar Soybeans(CBT) Mar Soymeal(CBT) Mar Soyoil(CBT) |
| 3/15 Thu |
7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Intial Claims-Weekly 7:30 AM CDT - Core PPI & PPI(Feb) 7:30 AM CDT - Empire Manufacturing(Mar) 8:00 AM CDT - Net Long-Term TIC Flows(Jan) 9:00 AM CDT - Philadelphia Fed(Mar) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply | LT: Mar Lumber(CME) Mar Cocoa(ICE) Mar NASDAQ(CME) Mar S&P 500(CME) Mar NASDAQ Options(CME) Mar S&P 500 Options(CME) Apr Crude Lt Options(NYM) Apr Sugar-11 Options(NYM) |
* 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!
