As a high risk trading type, futures trading is not for someone who is faint-hearted. Though there are a number of different ways of investing in futures , it is important to stick to what you know. Treading into unknown waters is not something that you should do when dealing in futures.
From managing margins to ordering trades to doing market analysis and more if you want to, you can do that all by yourself – but you may betaking double the risk. Therefore, when trading in futures, it may be better to seek advice from a professional trader.
Professional trading experts at Cannon Trading can help you with your futures trading. We are also there to keep you updated with the latest on futures trading and market news. All the news and latest articles on futures trading are published on our site under the category Archive Futures Trading News, which you are currently browsing through. Read more and the latest here and keep updated.
Wow! August started out with a very volatile session across the board!
Following the 0.25 rate cut, stock indices started off with a strong rally while metals were selling off, especially Palladium!
Around Central time, President Trump twitted about China tariffs and the result was a fast and furious sell off across the energy sector, grains, followed by a reversal on stock indices to the down side and reversal in gold to the upside.
That was an interesting session to say the least!!
Crude oil dropped over a $1 in less than 4 minutes and over $2.4 in 15 minutes….just one example.
be aware of volatility and when it changes be ready to adjust your trading as well. If you need a reminder why one should trade with stops, these moves definitely provided one.
A look at the mini Russell below, I think that if we can close tomorrow below 1544, it may be a strong bearish signal – my opinion.
Good Trading
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.
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 here in 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 judgement in trading.
Trading 101: Trading videos on bollinger bands, Parabolics, Trading levels, Range Bars and more!
Watch the latest trading videos we have posted and shared with our clients!
In this week’s newsletter we are sharing two videos, each a few minutes long. The videos discuss practical tips for trading and sharing our experience with you
1. Using bolinger Bands as a possible tool for exiting trades
2. One way you can use the Parabolics study ( also known as PSAR) to manage current positions, possibly as a trailing stop
3. Different ways traders can utilize support and resistance levels in their trading.
4. Entering trades on a stop, using “price confirmation”.
5. Utilizing Range Bar charts for shorter term trading as a way to try and filter out some noise.
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.
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 here in 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 judgement in trading.
According to CME Group’s FedWatch tool, the chance for a 0.25 rate cut on Wednesday is approx. 70% and 30% chance for 0.5 rate cut.
Tomorrow is one of the more anticipated meetings as it will probably be the first time the Fed has lowered rates in a decade!! Be aware, be careful.
The following are my PERSONAL suggestions on trading during FOMC days:
· Reduce trading size
· Be extra picky = no trade is better than a bad trade
· Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 2925.00 with a stop at 2919.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2919.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
· Expect the higher volatility during and right after the announcement
· Expect to see some “vacuum” ( low volume, big zigzags) right before the number.
· Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
· Know what the market was expecting, learn what came out and observe market reaction for clues
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.
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 here in 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 judgement in trading.
The Fed is expected to cut rates this Wednesday. Is a rate cut deep into an economic expansion unusual? It did so in 1987 and 1998. Find out what happened by watching the video by clicking below.
So I had a few interesting conversations this past week, some with prospects and some with clients…..
The first one was with a prospect who needed some advice on how to improve his day-trading. We chatted for a few minutes on the phone, I shared some insight and tips in hopes that this will help me gain his business. It sounds like he may be a client but the reason I am sharing this is because he said: ” wow these 15 minutes talking with you on the phone were very valuable and I appreciate it. You gave me more than a few things to try and implement and I will keep you posted!”
The second conversation was with a client of mine who simply did not know that I can provide him with quite a bit of trading ideas and insight into futures options…..
You may ask why I am sharing this with you?
The reason is that many prospects and clients may not be aware that our biggest asset here at Cannon, are our brokers and the vast commutative experience we posses. USE IT. REACH OUT. CHAT ONLINE OR TALK ON THE PHONE. WE ARE HERE TOP HELP.
You can start by visiting our Trader’s Profile or simply call/ email your broker if you are a client or reply back to this email if you are a prospect.
Good Trading
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.
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 here in 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 judgement in trading.
iSystems is a trading platform that allows you the investor/trader to browse and view performance from over 1500 professionally designed systems.
You can browse statistics, performance, logic and much more.
A series 3 professional broker is here to assist you if you would like to evaluate any specific systems and even better how to create a diversified portfolio based on your risk profile and capital.
The capital requirements for each Algo range from just $3000.00 to $25,000.00 You can choose between day trading Algos and swing trading Algos and much more….
These systems can be started/stopped at anytime by you! You have full control.
Some clients like to have some automated systems in addition to their self directed account, some clients prefer to only utilize automated systems as they don’t have the time or desire to trade on their own.
Good Trading
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.
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 here in 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 judgement in trading.
Earnings are coming out and the markets are sensitive to these reports.
FOMC next week.
China talks are positive so far.
Geo Political can change any minute.
ECB rates tomorrow.
Daily chart of the RBOB ( unleaded Gas below) – technicals point lower in my opinion, geo political is holding the energy complex.
Good Trading
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.
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 here in 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 judgement in trading.
Trading 201: Enhance Your Trading With a Series of Short Videos
Watch the latest trading videos we’ve created and shared with our clients!
In this week’s newsletter we are sharing some videos on trading, each a few minutes long. The videos discuss practical tips for trading and sharing our experience with you. Whether you’re an experienced trader or a newcomer, we believe you can enhance and add something new to your trading after watching these videos. Enjoy!
1. Using Bollinger Bands as a possible tool for exiting trades
2. One way you can use the Parabolics study ( also known as PSAR) to manage your trades, possibly by integrating a trailing stop
3. Different ways traders can utilize support and resistance levels in their trading.
4. Entering trades on a stop, using “price confirmation”.
5. Utilizing Range Bar charts for shorter term trading as a way to try and filter out some noise.
6. How to identify support and resistance levels
7. Using fear and greed to day trade crude oil futures.
Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. 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.
Good Trading
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.
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 here in 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 judgement in trading.
This is a question that I am often asked by prospective clients. If I could answer this question in a few words or better yet one number, I could save us all some time. Unfortunately, for time’s sake, this is not an option, so let me get right to it!
Trading futures is not like FOREX, Stocks or CFDs. The leverage is not negotiable because it is intrinsic to the commodity value. To make matters more complicated the leverage changes with every tick- or change in value/price. A second important consideration for the equation is margin requirement, also can be instantly adjusted by the exchange, but less frequently. Below are two examples to shed further light, ES and CL are some of the most popular futures markets.
Example #1
ES – S&P 500 Futures. Current Margin: $6930 Current price: 2980. Constant multiplier: 50(price per point)
Total value of contract = current price*multiplier
X= 2980*50 X= $149,000
Leverage = total value of contract / margin requirement.
X= $149,000/$6930 X= 21.5:1 Leverage.
Using $1000-day margin X becomes 149:1
As you can see if the price or the margin changes so does the equation and ultimately leverage.
Example #2
CL– Crude Oil Futures. Current Margin: $4015 Current price: 55.20 Constant multiplier: 1000 (# of barrels /contract)
Total value of contract = current price*multiplier
X= 55.20 *1000 X= $55,200
Leverage = total value of contract / margin requirement.
X= $55,200/$4015 X= 13.75:1 Leverage.
Using $1000-day margin X becomes 55:1
As you can see it is not a simple answer, however there is a reasonable explanation. It is important to also consider volatility along with leverage. A broker at Cannon Trading would be happy to help discuss more in depth and also suggest ways to minimize your leverage using options or smaller contract like Micro Futures.
Good Trading
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.
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 here in 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 judgement in trading.
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 here in 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 judgement in trading.
Cannon Trading is pleased to present a FREE 3 week trial to a simple day trading concept you can learn, evaluate and implement on all major futures contracts.
The trial includes a 23 page PDF that outlines our concept for daytrading, how to use the two main indicators/ ALGOS, money management rules and much more. Interested clients and qualified prospects will be able to set up two different 15 minutes desktop sharing sessions to review from the conceptual stage to the implementation page, as we walk you through the set up on your own machine and provide feedback as we assist you through the learning curve.
What’s Included?
Free demo that includes the charts along the indicators below: (Diamonds and Arrows)
23 page PDF booklet with examples, explanations and more…
Live remote session during market hours to review the model with realtime price action.
Daily silver chart below. Silver made a nice breakout today but we need to see some follow through to this move, specifically above 15.80 if the bulls want to get excited.
Good Trading
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.
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 here in 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 judgement in trading.
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.
