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.
This article was published by the Stocks, Futures, & Options Magazine in September, 2007 and was written by our VP, Ilan Levy-Mayer. We think this article is timeless and whether you are beginner or advanced trader, you will enjoy it.
Perhaps the greatest luxury I have in this business is the ability to observe the experiences of many traders with different personalities, life schedules and risk capital, each trading in a variety of markets. What most astute brokers realize is that, over time, as some individuals prematurely exit winners while others desperately cling to losers, Day trading is by definition a trade that is initiated and completed during the same trading day. In this wide category, you will find many types of traders. On one end of the spectrum are scalpers, who go for one or two ticks of profit several times a day in trades lasting just seconds. On the other side are speculators who stay in a position from the start of the day until the close. One of the main appeals of day trading for all types is that the trader goes home flat without having to worry about positions. When the market closes, the day is done. Money management, as the name implies, is applying prudent principles to help conserve your trade (risk) capital. Without risk capital to trade, a speculator does not have a chance to succeed.
The move we saw from Friday morning right after job numbers to today was a very powerful, vertical up move.
The question, big question is:
Is this a vicious bear market rally, possibly an opportunity to sell?
Did market participants decided that rates will be at zero for foreseeable future ( ZIRP) and market just finished a healthy 10% correction and heading back to an all time high?
Big questions….I am not sure which way to lean but here my daily chart of the mini SP 500 with some levels to watch. We are right against key resistance, possible right shoulder in the head and shoulder formation.
EP – E-Mini S&P 500, Equalized Active Daily Continution : Heikin-Ashi
Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services.
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.
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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 judgment in trading.
Monthly unemployment tomorrow morning! Market mover, be ready.
and on the topic of reports, trading , demo….great read below:
Why Didn’t I Get Filled? A treatise to Demo Traders”, on behalf of brokers everywhere.
By: Justin Smith, Cannon Trading Commodities BrokerDemo Trading. Also known as simulated trading, paper trading, playing with Monopoly money; whatever you’d like to call it, a demo can be your best friend or your worst enemy. Every Futures broker dreads having this conversation with their clients, as it is necessary with every new trader; however, much to a broker’s chagrin, every new trader will say that they already understand when in fact they rarely do. Let me assure you, if you’re a new or even sometimes-intermediate trader, you probably don’t. You may understand one popular issue of the conversation but odds are if you have been paper trading for five years waiting to be “successful” or to “understand the futures markets” in the simulated world before moving on, you have less of a chance of being successful in the live futures markets because you’re setting yourself up for failure (if you ever do, in fact, trade in the live markets). You should seriously consider speaking with a licensed commodities and futures broker before diving in.For the uninitiated, demo trading is the practice of trying out an online trading platform on a simulated basis-in a free demo trading account, you’re granted simulated funds, you’re placing simulated orders in the markets and you’re shown simulated profits and losses on what your trades might have done for you if you were futures trading on a live platform with live funds. First and foremost, it’s a wonderful technological tool for testing out a platform to see if it will suit your trading methodology. It can also be used to try different trading strategies, but problems arise when one equates simulated trading too much with live futures trading.
Wishing everyone a great trading month in October.
Wrote this one before but worth sharing again:
So many times as a broker I see clients who know how to make money…I see it in the daily statements, good winning %, consistent profits UNTIL….something happens. Either the client who is normally a day-trader decides to carry his/hers losing position and make it into a swing trade…..OR the trader is down and refuses to accept the fact it may be a losing day and decides to double down and get more aggressive because if this trade is a winner he will have another winning day….the examples go on and no I am not referring to anyone specific although many of you probably think I am talking about them.
I have done it before as a trader. It is the inability to accept a loss that creates this snow ball. I am not a psychologist nor a professional writer ( English is my second language if you did not tell by now (-: What I am hoping for is that by writing this I may help the “good voice” inside your head that tells you DONT double down OR just keep the stop, win over that bad voice that is whispering to you to go ahead and reverse the position and double it when it is clearly not in your game plan…Trading is tough mentally, financially and emotionally, help yourself be a better trader by being a more disciplined trader.
Tomorrow is the last trading day for the month of September. Over the years I’ve noticed that the last trading day of the month often exhibits unique patterns some what of a different trading personality.
I have mentioned in the past the benefits of keeping a trading journal so you can learn from the mistakes and good trading behavior, keeping a trading journal can be a big asset. One example I noticed that happens on the last trading day of the month involves the bond market. I have noticed that during the last 30 minutes of what used to be the pit session, we will see a big move one way or the other. Sometimes the range during the last 30 minutes will be wider than the rest of the session prior.
This is just one example I wanted to hare but there are others in different markets and keeping a trading journal can help you identify repetitive patterns and perhaps take advantage of it.
Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services.
EP – E-Mini S&P 500, Equalized Active Daily Continution : Heikin-Ashi
Been out due to rotator cuff surgery and back with limited typing ability….
Market is acting like a bear market. Lower lows, lower highs BUT still need to take out 1891 support level as seen below in the daily Heikin-Ashi chart of Dec. mini SP 500
Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services.
Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services.
This much anticipated FOMC lived up to expectations….tremendous volatility for sure. I hope some of you read my tips YESTERDAY about lowering trading quantities and widening stops etc.
That’s history but one thing I recommend, is write down notes from today. market behavior, your behavior etc. Keep it as part of your trading journal. Might help you the next FOMC…..What’s next? To be honest I am not sure at this point.
Here is my daily chart for the mini Russell 2000. Confused market in my opinion.
PS:
1. Many times the big move happens the DAY AFTER FOMC
2. Tomorrow is quadruple witching….
TFE – Russell 2000 Index Mini, Equalized Active Daily Continuation : Heikin-Ashi
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.
