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Category: Day Trading

Here is a subject that a lot of people don’t understand at all. Day Trading can be risky. So, it is something that you should stay away from unless and until you are absolutely sure about what you are doing.

There are a number of items about Day Trading such as the minimum mantaince requirementand more that need to be taken into consideration. With the blogs and write-ups listed in this section, you can learn a great deal about day trading.

We at Cannon Trading can help you understand the different concepts of trading and present you with the latest information on the same. Our team of professional and smart people can help you in your day trading transactions and more. In order to understand day trading more clearly, we advise that you go through all the write-ups listed in this category archive on Day Trading.

Important Price Levels SP 500 – Market Leader | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini Mini S&P 500 Futures Chart

divider black 190

1. Market Commentary

Volatility remains high and what I wrote the last few days, still holds:

As far as the daily chart, I am now confused again….Once again there is a CASE for both sides, bulls and the bears and the potential for a BIG MOVE EITHER WAY is greater than normal as we are sitting on important price levels in the SP500, which has been the leader for the rest of the markets as of the last few weeks.

With the close today I am now leaning towards the long side…..BUT still not excited about the risk / reward scenario. Continue reading “Important Price Levels SP 500 – Market Leader | Support and Resistance Levels”

Trading Levels & Economic Reports for 10-20-2011

Posted on by Ilan

 

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini Mini S&P 500 Futures Chart

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1. Market Commentary

Volatility remains high and what I wrote yesterday, still holds:

As far as the daily chart, I am now confused again….I got tempted on the short side and got burnt very quickly today….Once again there is a CASE for both sides, bulls and the bears and the potential for a BIG MOVE EITHER WAY is greater than normal as we are sitting on important price levels in the SP500, which has been the leader for the rest of the markets as of the last few weeks.

One more point that I would like to add that have helped me when I followed and hurt me when I ignored…

When volatility is higher than normal, like we have now, I try to REDUCE my trading size. This allows me to stay in a trade with higher comfort level instead of getting out too soon from winners and too late from losers….The principal is correct regardless of volatility but even more so when markets experience fast and sharp moves. Continue reading “Trading Levels & Economic Reports for 10-20-2011”

Take Note of the Columbus Day Schedule for Monday | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart
4. Economic Reports
5. Highlighted Earnings Releases

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1. Market Commentary

This morning un employment report lived up to its expectations….providing a volatile two sided action.

Subscribers to our daily webinar or to the LEVEX DIAMOND algo had access in real time to this 15 minutes mini SP chart below.

LEVEX DIAMOND Algo in the S&P 500 Futures Chart from October 7, 2011

LEVEX DIAMOND Futures Chart from October 7, 2011 Continue reading “Take Note of the Columbus Day Schedule for Monday | Support and Resistance Levels”

Day-Trading Tactics for October | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart from September 30, 2011
4. Economic Reports

divider black 190

1. Market Commentary

For October I would like to wish everyone a month full of trading patience, of wise money management, of disciplined trading and “picky” trades.

If you will be able to control yourself and implement what I mentioned above, it should be a successful trading month!

From technical point of view, the market is bearish but not sure if this matters to most of you, since the majority are day-traders by nature, which brings me to another point….

If you are a day-trader who uses very short time frame and quick profits as a trading method, then your risk parameters should be adjusted accordingly. In simple language if you are looking to make 2 points mini SP profit, why risk 10 or more points? Losses are part of trading and I don’t know ANYONE who wins 100% of the time, that means that as a trader you must learn to accept losses and use “makes-sense” money management.

Daily chart of the mini SP 500 for your review below: Continue reading “Day-Trading Tactics for October | Support and Resistance Levels”

Futures Trading Levels, We Now Trade September Indeces and Currencies

Posted on by Ilan

Cannon Trading / E-Futures.com

June To September Rollover Notice

Please note that we are now trading September indices as well as September currencies.

Make sure you DO NOT HOLD ANY JUNE CURRENCIES in your account.

Should you have any further questions please contact your futures broker.

Daily chart of the DOW JONES CASH INDEX for your review below.

We have been trading lower on good volume and for now the trend points lower. Wishing you a great weekend and good trading week to come. Continue reading “Futures Trading Levels, We Now Trade September Indeces and Currencies”

Futures Trading Levels, 8 Steps to Successful Day Trading

Posted on by Ilan

Cannon Trading / E-Futures.com

Quick reading material for the weekend:

Cannon Trading Education

8 Steps to Successful Futures Day Trading

Introduction

My name is Ilan Levy-Mayer and I am the Vice President and Senior Broker at Cannon Trading. I came up with the following personal observations after serving online traders worldwide for more than 13 years. The following steps are guides to progress, and are not necessarily in sequential order. Some of them are always required, but each 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.

1.Education

Hopefully if you are already trading you have completed your initial education: contract specs, trading hours, 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 trading. The second type of education is ongoing: learning about trading techniques, the evolution of 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!

4.Money Management

While it is closely related to survival, money management can also stand alone. For your own survival, you must set trade/daily/weekly loss limits. Sound money

management is closely associated with knowing your risk-reward ratio (again, per trade and per time frame).

5.Goals

You should have a game plan and established goals which will function as a road map to measure your progress and improvement. Set per-trade goals, daily goals, weekly goals, etc. Many of you who are clients are familiar with these questions: What is your daily profit goal? Where do you see yourself in a week from now.? Six months from now? A year from now? How are you planning to get there? Break it down into small steps, and you’ll always know whether or not you’re on the right track. And do not forget to continually reevaluate your financial situation as it pertains to risk capital.

6.Experience

If you made it to this stage you’re on the right track! Just like anything else in life, the more experience you have, the greater your success is likely to be. The key is to acquire the experience without devastating your risk capital. What good is experience without risk capital in your trading account?

7.Learn your Setups, Strengths, and Weaknesses

Teach yourself to recognize different set-ups that you feel comfortable and confident with. Then attack. You cannot get to this stage without going through the previous steps. If you did not survive, develop a trading system, set goals, etc., you may recognize the right setups but lack the confidence or the cash to take advantage. I sometimes compare being the “pro” to the lion who is waiting patiently for its prey and then attacks when the time is right!

8.Trading on a Consistent Basis

This means you will continue to evolve as a trader and go through these stages over the years again and again.

In Conclusion

Don’t be discouraged by reading this. Succeeding in futures trading takes hard work and time.

Please be realistic, make sure you only try this with risk capital only and periodically check yourself and try to learn from your mistakes and successes.

Disclaimer

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 results are not necessarily indicative of future results. The risk of loss in trading

can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Day trading can be extremely risky. Day trading generally is not appropriate for someone of limited resources and limited investment or trading experience and low risk tolerance. You should be prepared to lose all of the funds that you use for day trading. And more, you should not fund day-trading activities with funds required to meet your living expenses or change your standard of living.

You should be wary of advertisements or other statements that emphasize the potential for large profits in day trading. Day trading can also lead to large and immediate financial losses.

Day trading will generate substantial commissions, even if the per trade cost is low. Day trading involves aggressive trading, and you will pay commission on each trade. The total daily commissions that you pay on your trades will add to your losses or significantly reduce your earnings.

Day trading on margin may result in losses beyond your initial investment. An investment of less that $25,000 will significantly impair the ability of a day trader to make a profit. Of course, an investment of $25,000 or more will not guarantee success.

Cannon Trading Company
(800) 454-9572

I share much more each trading day via daily service I call NAZLAN LIVE CHARTS. You can try it free for 2 weeks at:

Nazlan Live Charts Continue reading “Futures Trading Levels, 8 Steps to Successful Day Trading”

Futures Trading Levels, Day Trading Concepts

Posted on by Ilan

Cannon Trading / E-Futures.com

Wishing all of you great trading month in April.

Few trading tips for your reading below:

9 Key E-Mini Day Trading Concepts

by TradingEmini.com

Trading is inherently risky but by following nine fundamental money management rules you can keep your capital safer while building your trading experience.

1. Look for high volume markets with a thin spread, so orders are filled quickly and it has high volatility, so there are opportunities for 2 to 4 good trades during the day. The Emini S&P500 Index Future is a good example of this type of market (Each point is worth $50, split into 4 ticks of $12.50 and there are 4 contracts a year, traded on the Chicago Mercantile Exchange).
2. Only risk 1% of your capital per trade, then your capital can absorb 100 consecutive bad trades. Even the best systems can expect 20% loosing trades, so the 1% rule gives you room to maneuver.
3. $10-$15k is the minimum recommended risk capital you should have per Emini S&P500 contract traded – then if you lose $1000-$1500 it only represents 10% of you capital, which is recoverable compared to a $3k account where the same loss equals 50% of your account, consequently you are more likely to lose the remainder of your capital rather than recover the loss.
4. Limit the hours you trade – we prefer the first 60-90 minutes, when typically there is a good trend before the lunch time chop – many professional traders trade this time period.
5. Limit the number of trades you make per day – 2-6 is good as the Emini usually has up to 3 trends per day and you should aim to catch 1-2 out of the 3. Overtrading racks up commission fees and increases the risk of revenge trading. A few ticks loss per trade quickly mounts up – 4 trades fired like a machine gun can easily become four losers, at 8 tick stops, that’s $400 loss, 4% of a $10k account. Patience is key, stalk trades.
6. On any one day stop trading when losses hit 5-10% of capital, which is recoverable, and indicates you are reading the market wrong, so stop, evaluate your errors and record them in your Trading Journal.
7. Keep a Trading Journal, listing all your trades, because over time the mind dismisses bad trades and habits. Include annotated charts, and notes about your emotions. Key things to note:
– are you trading your account not the charts, taking desperate trades having made a couple of losers, rather than treating each trade uniquely.
– are you taking negligible signals because you have missed a good move, resulting in chasing a trade, which you are stopped out of on a minor retrace, or you opt for a countertrend trade, purely on the thought “it can’t possibly go any higher.”
8. Base your stop loss and target strategically from the charts, not an arbitrary number of points. For example use price levels at double tops, swing highs and lows, or pull backs to moving averages. Then you can place tighter stops and take higher profit to risk ratio trades, keeping your focus on the chart, trading what you see not what you want to see, think or feel.
9. Be patient between one EMA, or pivot, to the next. This is one of the hardest things to master. To help, trade at least 2 contracts, keeping 1 for 2-3pts, whatever your first target is, and then let a runner go with a breakeven stop. If it goes your way you add gravy to the first. One good runner is hard to beat with lots of scalps.

Disclaimer:

Trading commodity futures and options involves substantial risk of loss. The recommendations 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 futures 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! Continue reading “Futures Trading Levels, Day Trading Concepts”

Futures Trading Levels, Key to Successful Trading Special Feature

Posted on by Ilan

Special Feature: The Key To Success as a Trader

By: Cannon Trading Staff

What makes one trader successful, while another is not?

futures trading success key

Is it intelligence? No. If it were, then doctors, lawyers, and engineers would make the best traders.

Is it the latest software program? No. If it were then the developers of the “magic black boxes” would be the best traders.

Is it experience? No. If it were then all successful traders would be bald or have gray hair, and we know this is not the case.

Is it those that have inside information? No. Be real. In today’s trading world data and information are global and instantaneous.

What then is the key?

Read the rest of the special feature in our weekly newsletter Continue reading “Futures Trading Levels, Key to Successful Trading Special Feature”

8 Steps to Successful Futures Day Trading February 2, 2011

Posted on by Ilan

Download and read our guide which outlines some important futures day trading concepts. It may be beneficial to read this guide before trading commodities on the futures market.

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 servingone must keep in mind that futures trading is risky and can involve significant losses.

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!

READ THE REST AT:

https://www.cannontrading.com/tools/education-8-steps Continue reading “8 Steps to Successful Futures Day Trading February 2, 2011”

Live Day-Trading Webinar with Real Time Mini SP, Crude Oil and Euro Currency Set-Ups, January 4, 2011

Posted on by Ilan

Join us for a Webinar on January 5th

Click Here to Register for the January 5, 2011 Webinar by Ilan Levy-Mayer

Space is limited.

Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/834358098

This Wednesday, January 5th , Ilan Levy-Mayer, Vice President of Cannon Trading and President / AP of LEVEX Capital Management Inc., a registered commodity trading advisor, will hold a live educational day trading webinar starting at 8:15 AM central time.

During the webinar, Ilan will:

  • Share his approach to day trading futures and
  • Explain his day trading strategies that can be applied to futures markets such as the E Mini S&P 500, crude oil futures, euro currency, and others.
  • Review some of his technical indicators
  • Detail his day trading money management philosophy
  • Walks through live trade set ups as they happen real-time

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.

Title:        Live Day-Trading webinar with real time mini SP, Crude Oil and Euro Currency set ups
Date:        Wednesday, January 5, 2011
Time:        6:15 AM – 10:00 AM PST

After registering you will receive a confirmation email containing information about joining the Webinar.

System Requirements
PC-based attendees
Required: Windows® 7, Vista, XP or 2003 Server Continue reading “Live Day-Trading Webinar with Real Time Mini SP, Crude Oil and Euro Currency Set-Ups, January 4, 2011”

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.