With many economists, researchers and traders calling for the next bull market in commodities, and you have disposable risk capital to take advantage of these potential trends you may be asking yourself – How can I begin my search for a solid reliable Futures Broker? I have included 9 items below that you should be cognizant of to assist you in finding a reliable partner for your commodity trading needs.
1. The Futures Brokers history
How long has the Futures Broker been in business? What is the commodity trading brokers regulatory history? you can check here by selecting BASIC then responding to the prompts to bring up a regulatory profile of the firms or individuals that you are interested in researching. http://www.nfa.futures.org/ Many times you will be able to find a nuisance regulatory issue and other times you may find regulatory actions that would cause you to pause. If you pause, move on to another broker as all legitimate Commodity Futures Brokers must be registered with the National Futures Association (NFA). if you can’t find your broker on the NFA website, you may not be dealing with a regulated entity.
2. Trading Platform choices
You would be looking for a Discount Futures broker if platform choice is critical to your trading strategy. Opportunities to use a variety of tools and risk management software to enhance your trading experience as an online, self-directed trader will vastly improve your traders toolbox. Preferably you will want to use a Discount futures broker that can offer a wide array of trading solutions software to execute your plan. Not all Platforms and Data feeds are alike and in this day of wifi and internet , the speed and accuracy of your software will be critical to your success, not to mention the bandwidth you will be piping into your computer.
For 2013 I would like to wish all of you discipline and patience in your trading!
As most of you know, for short term trading I like to use volume charts, range bar charts and Renko charts.
I have shared some set ups in previous posts and will continue to do so.
For example, I like to use 18 ticks range bar charts for crude oil and 6 ticks range bar charts for mini SP.
Here is a little more on Range bar charts, courtesy of CQG.com which is my main charting/execution software followed by sierra charts:
Range Bar (RB)
A Range Bar chart is a non-time-based chart constructed of bars that indicate price movement as a way to help expose trends and volatility. A bar is created each time a trade occurs outside of the previous bar’s stated price range, which you set in preferences.
For 2013 I would like to wish all of you discipline and patience in your trading!
A note, mostly to prospects, as I think most of our clients are already trading on the most suitable platform for their needs, but if you are not a client yet …
We now offer pretty much ANY trading platform out there, including NINJA ZEN FIRE.
So if you have a specific platform in mind OR if you are a NINJA user and would like to see what I consider superb service and added value, visit our website and specifically the NINJA page.
For 2013 I would like to wish all of you discipline and patience in your trading!
Most Common Pitfalls To Avoid When Trading Futures-Commodity Futures
500 experienced futures brokers were asked what caused most futures traders to lose money when comes to trading futures.
Their answers reflected the trading experience of more than 10,000 futures traders. Download the PDF and find out what they said.
1.) Have a Plan
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 over trade and use their equity to the limit (are under capitalized), which puts them in a squeeze and forces them to liquidate positions. Usually, they liquidate the good trades and keep the bad ones.
2.) News Factor
Many traders don’t realize the news they hear and read has, in many cases, already been discounted by the market.
3.) Trade Objectively
After several profitable trades, many speculators become wild and non conservative. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that “can’t fail.”
4.) Know Your Size
Traders often try to carry too big a position with too little capital and trade too frequently for the size of the account.
5.) Don’t Get Greedy when it comes to Trading Futures
Some traders try to “beat the market” by day trading, nervous scalping, and getting greedy.
For 2013 I would like to wish all of you discipline and patience in your trading!
Big upside move today in stock index futures.
The big question is : is this buy the rumor, sell the fact? is this just a relief rally on news that lack much substance?
The future will answer our question but in between anyone’s speculation can be right or wrong….
I think in the shorter term we need to see which is the path of least resistance first, the 1694 area or the 1681 level. We will probably get an answer to that tomorrow. Then we need to see the wider bands and what type of price action we get….Trading is definitely NOT an easy thing but if any of you found ways to make it easier, please share and I will try to spread the word!
EP – E-Mini S&P 500, Equalized Active Daily Continuation
For 2013 I would like to wish all of you discipline and patience in your trading!
Short and to the point article written by my colleague, www.JimWyckoff.com
Educational Feature: Dealing With Losing Trades
(Note: This feature is a favorite of mine, and I believe all traders need to address this issue every once in a while.)A main tenet of success in futures trading is the ability to accept losing trades as part of the overall trading process. This is not an easy undertaking–especially since many futures traders tend to be of a more competitive nature in the first place. Traders certainly don’t have to enjoy losing trades, but they must accept the fact and move on. Those who can’t accept the fact that losing trades are a part of futures trading usually don’t stay in the business very long.My wife is a school teacher, and one of her favorite acronyms–ADM–can be applied to losing futures trades. “Accept” it. “Deal” with it. “Move” on. (This is a part of the important psychological aspect of trading, and deserves much more discussion than I can provide in this feature.)I had lunch with one of my trading mentors a while back. We discussed losing trades. I asked my mentor how many losing trades in a row he has had to endure during his long and successful trading career. His reply was 13 in a row. I asked him how he coped with that. He said that while it was certainly not easy, he knew that losing trades are a part of the business and that he was in the business “for the long haul,” and that his trading methodology was sound. He added, “Ninety-percent of futures trading profits are made on 10% of the trades, which means most of the other trades are either small losers or break-even-type trades.” This is an important fact for all traders to keep in mind.My lunch meeting with my mentor was good for me because, even though we made no “break-through” discoveries on the path to increased futures trading success, we did reaffirm our own philosophies on trading and markets. My passion for trading and market analysis is fed immensely every time I talk with people in my profession, or attend the quality trading seminars.For many of you, the futures trading arena can be more fulfilling (and more fun) if you have someone, or some support group, with which to share your thoughts and strategies. If you are passionate about futures trading and markets, finding someone who shares that passion is a great trading tool within itself!That’s it for now. Next time, we’ll discuss another important issue on your path to trading success.
For 2013 I would like to wish all of you discipline and patience in your trading!
Stock indices broke down over last few days as Govt. shut down is in affect. One never knows what type of reaction we will get once the shut down is over or when this will be.
ENQ – E-Mini S&P 500, Equalized Active Daily Continuation
Space is limited. Join us for a Webinar on October 9
Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/198800538
Join us for a 90-minute LIVE trading and screen sharing, Wednesday, Oct. 9th at 9:15 A.M., Central Time.
During this presentation, Ilan Levy-Mayer, VP of Cannon Trading and Principal of LEVEX Capital Management will share with you details of his approach to day-trading futures, he calls “Nazlan Day-Trading Model & Rules.” and will focus on Gold futures.
In this webinar, Ilan will:
Explain his entry signals
Review trading size
Explain multi time frame correlation
Review the charts he likes to use for different markets
Review his proprietary ALGO’s and trade indicators
Present exit techniques
And much more…Ilan has over 15 years of experience and has observed many traders as well as assisted many clients with different approaches to trading. He will be answering your questions and sharing as much of his philosophy as time allows. If markets are willing and trade set-ups occur, Ilan will take these set-ups using a real time simulation account and will review these trades.As a thank you, attendees will receive a 3-week free trial to the day-trading indicators and Algorithms along with a 23-page PDF booklet with chart examples and explanations.
Space is limited!
Reserve your space today at: https://www2.gotomeeting.com/register/198800538
Risk: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
For 2013 I would like to wish all of you discipline and patience in your trading!
Two notes for today: Gmail updates and Gold Futures Day trading Webinar.
1. If you are using Gmail and our a client of mine, you may see my daily updates go into your “promotions folder”. To have my daily updates delivered into your primary inbox do the following:
Drag and Drop
The easiest way to move an email in your inbox is to left-click and hold on the email to drag it from the Promotions tab over to the Primary tab.
Releasing the mouse drops the email into the newly selected tab. Once dropped, Gmail displays a yellow box asking if you want to make this change permanent. ClickYes to ensure that all messages with the same from address will appear in the Primary tab going forward.
Space is limited.
Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/198800538
Join us for a 90-minute LIVE trading and screen sharing, Wednesday, Oct. 9th at 9:15 A.M., Central Time.
During this presentation, Ilan Levy-Mayer, VP of Cannon Trading and Principal of LEVEX Capital Management will share with you details of his approach to day-trading futures, he calls “Nazlan Day-Trading Model & Rules.” and will focus on Gold futures.
In this webinar, Ilan will:
1. Explain his entry signals
2. Review trading size
3. Explain multi time frame correlation
4. Review the charts he likes to use for different markets
5. Review his proprietary ALGO’s and trade indicators
6. present exit techniques
For 2013 I would like to wish all of you discipline and patience in your trading!
I wrote this one before about different markets traders may want to look at for day trading or what I call “Day-Trading life outside of the mini SP”
Each market has different personality, different behavior along with different times of the day when it is most active. If you are finding that the ES is not giving you enough risk/opportunities then start monitoring a couple of other markets and perhaps explore them in demo / simulated mode.
I will try over the next few blogs to shed some light on other markets i think are suitable for day-trading along with what is unique about these markets, personality and most active trading hours.
Today I am going to start with interest rates, mostly the ten year and 30 year.
In most platforms, the symbols are ZB for 30 year bonds and ZN for 10 year notes. The current front month is December which is Z. So ZBZ3 for example.
Product Symbol
ZB
Contract Size
The unit of trading shall be U.S. Treasury Bonds having a face value at maturity of one hundred thousand dollars ($100,000) or multiples thereof
Price Quotation
Points ($1,000) and 1/32 of a point. For example, 134-16 represents 134 16/32. Par is on the basis of 100 points.
Product Symbol
ZN
Underlying Unit
One U.S. Treasury note having a face value at maturity of $100,000.
Deliverable Grades
U.S. Treasury notes with a remaining term to maturity of at least six and a half years, but not more than 10 years, from the first day of the delivery month. The invoice price equals the futures settlement price times a conversion factor, plus accrued interest. The conversion factor is the price of the delivered note ($1 par value) to yield 6 percent.
Price Quote
Points ($1,000) and halves of 1/32 of a point. For example, 126-16 represents 126 16/32 and 126-165 represents 126 16.5/32. Par is on the basis of 100 points.
Tick Size
(minimum fluctuation)
One-half of one thirty-second (1/32) of one point ($15.625, rounded up to the nearest cent per contract), except for intermonth spreads, where the minimum price fluctuation shall be one-quarter of one thirty-second of one point ($7.8125 per contract).
Contract Months
The first five consecutive contracts in the March, June, September, and December quarterly cycle.
These contracts are often affected by many of the economic reports that come out at 8:30 Am Eastern and there is very active volume between the hours of 8 am EST and 3 PM EST
Volume on both contracts is very good. Ten years will often have 1 million contracts traded per day ( might be the second most active US futures market after the mini SP 500) and the bonds will avg. around 300,000 contracts.
These markets can experience very volatile movements during and right after different reports but then will often trade smooth or in an intraday trend the rest of the day.
Follow these two markets in demo mode for a while if you have not traded them before and get a feel for the movement, reaction to reports, execution etc.
If you have any questions, feel free to contact me.
Below is a 3 tick range bar chart of the US bond market or what i refer to as the 30 year bonds ZBZ3 from today
30 Year US T-Bonds
Would you like to have access to the DIAMOND and TOPAZ and 5T ALGOs as shown above and be able to apply for any market and any time frame on your own PC ? You can now have a three weeks free trial where the ALGO is enabled along with few studies for your own sierra/ ATcharts. The trial comes with a 23 page PDF booklet which explains the concepts, risks and methodology in more details.
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.
