Futures trading is done by two main parties, one of which is the hedger and the other one is the speculator. Where a speculator is there to trade for either their own accounts or that of their clients, a hedger always uses futures as a possible protection from losses. Hedgers can also be described as individuals or business owners who are more risk averse. Speculators and hedgers are likely to benefit from futures trading if the trader has a strong ability to analyze the markets and understands that future behavior. Though futures can behigh risk, they offer an equally high return and are thus very tempting.
In case you are new to futures trading you need to understand how things work. We at Cannon Trading are there to help with your understanding of all the elements of futures trading and also counsel and advise you with the same. Our knowledge base featured on our website, is a store house of information. In order to know every aspect of futures trading, you must read through these articles that have been listed in this category archive. Go through it and get better informed!
Cannon Trading / E-Futures.com
Daily levels will resume Monday, April 18th, until then feel free to contact your broker with any information you may need directly. Continue reading “Futures Trading Levels, Daily levels will resume Monday, April 18th”
Cannon Trading / E-Futures.com
Daily levels will resume Monday , April 18th, until then feel free to contact your broker with any information you may need directly.
Daily chart of SP 500 contract with potential levels for your review below: Continue reading “Futures Trading Levels, Daily Levels To Resume Monday the 18th”
Cannon Trading / E-Futures.com
Volatile action continue in the crude oil market, definitely not a market for traders with weak stomachs or those who don’t have “deep pockets”. High volatility.
Daily chart of May Crude below with possibility of market pulling back to 103.39 if selling resumes overnight – however this being said, the crude market is currently affected mostly by Mideast/Gaddafi news….. Continue reading “Futures Trading Levels, Volatile Oil Market is Most Affected by Libian News”
Cannon Trading / E-Futures.com
Have a great weekend and a good trading week.
Below is daily chart of SP500 with some potential levels for the “minor sell signal” I got 2 days ago. Continue reading “Futures Trading Levels, FOMC Members Dudley, Evans and Yellen Speak Tomorrow”
Cannon Trading / E-Futures.com
Some good reading material about dealing with losing trades on the Cannon Trading Inc. Weekly Newsletter. Continue reading “Futures Trading Levels, Newsletter Discusses Losing Trades”
Cannon Trading / E-Futures.com
I have a potential sell signal based on the Dow Jones Industrial cash index. In order for me to get more confidence in the short side, I would need to see the Dow Cash breaks below todays low which was 12353. If that happens I would look for 12100 but would also get out of the trade if market goes and makes fresh highs above todays highs.
“Plan your trade, trade your plan” Continue reading “Futures Trading Levels, New Potential Sell Signal”
Cannon Trading / E-Futures.com
Not much to write today, except this short quote I read and thought was worth sharing:
“The key to successful trading is in knowing yourself and in knowing your stress point” Continue reading “Futures Trading Levels, Fed Chairman Bernanke Speaks Tonight”
Cannon Trading / E-Futures.com
Wishing all of you great trading month in April.
Few trading tips for your reading below:
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”
Cannon Trading / E-Futures.com
Below you will see two different tables for Crude Oil since we are now executing the system for more than a few clients, using two different trading engines with two different clearing house. Since the system is only executed “semi Automatically” you will see some differences in the results. This is simply part of REAL LIVE, REAL TIME TRADING versus hypothetical trading. In hypothetical trading and/or back testing, computers assume perfect conditions, getting filled on all limit orders etc.
in REAL LIVE trading, there are times when you limit gets hit but you don’t get filled, there is room for human or machine errors etc.
NET RESULTS AFTER COMMISSIONS BELOW:
Group A:
Group B:
* Past performance is not indicative of future results.
About NZL Crude Oil Day-Trading system:
The computerized trading system, “NZL-Crude Oil Day Trading” is based on a mathematical algorithm that tries to identify exhaustion in either selling or buying along with a possible short term trend reversal. This system trades the Crude Oil future contract only. The system uses volume charts to determine entry and exit ( rather than the more familiar time charts). The algorithm takes into consideration volume, momentum and speed of market in an attempt to recognize situation where “fear and greed” are at extremes. It is followed by measuring possible targets for profits along with stops. This specific system takes the approach that statistically the percent of winning trades is larger than losing trades but in return it uses larger stops than targets.
We recommend $7500 of risk capital per 1 contract traded
Futures and options trading is risky and not suitable for everyone. There is a substantial risk of loss in trading commodity futures, options and off-exchange foreign currency products.
Past performance is not indicative of future results. Continue reading “Futures Trading Levels, Crude Oil Performance”
Cannon Trading / E-Futures.com
Register to download the guide: ‘Surival Day-Trading’ by Ilan Levy-Mayer.
Here’s a sample from the PDF:
“I started as a commodity broker back in 1998, when commissions of $25 per round turn for the E-minis were considered a deep discount. I had the luxury of observing many types of day traders and saw things from the sidelines that most traders couldn’t see during the heat of battle, one of which is the importance of solid money management for the long-term survival of day trade.
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.”
READ MORE:
on our weekly newsletter Continue reading “Futures Trading Levels, Ilan Levy-Mayer’s Day-Trading Guide”