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Category: Futures Trading

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!

Futures Market & Trading News with Daily Levels August 10th 2010

Posted on by Ilan

“‘The News can really Move the Futures Market”

FOMC tomorrow around 14:15 EST

FOMC days have different characteristics than other trading days. If you have traded for a while, check your trading notes from past FOMC days that may help you prepare for tomorrow. If you are a newcomer, take a more conservative approach and make sure you understand that the news can really move the futures market.

My observations suggest choppy, low volume up until announcement, followed by some some sharp volatile moves right during and after the announcement.

Futures & Commodity Trading Levels (Potential Support/Resistance):

Futures & Commodity Trading Levels (Potential Support/Resistance)
Futures & Commodity Trading Levels (Potential Support/Resistance)

Continue reading “Futures Market & Trading News with Daily Levels August 10th 2010”

Futures Market & Commodity Trading Daily Levels August 6th 2010

Posted on by Ilan

“The Futures Market is possibly over bought”

Monthly unemployment numbers tomorrow before the cash open will provide the futures market with some direction and may get us out of this ‘summer low volume’ type of trading.

Plan your trade, trade your plan. Stay focused and ONLY try to day-trade when you are focused. Remember to stay disciplined and know that no one trade or trading day will determine your trading fate. Even when day-trading (which is a short term action), the end results is of long term progress effort and the sum of many trades.

On a different note, below is a daily chart of the Mini Dow Jones. I got a red diamond ahead of tomorrows session. For me, that means that ‘the futures market is possibly over bought ‘. The way I like to play this set up is that if we break below 10550, we have a chance for a stronger move down. On the other hand, if we can keep above it, we may see 10720 soon.

YM - E-Mini Dow Futures - $5 Multiplier, Equalized Active Daily Continuation
YM – E-Mini Dow Futures – $5 Multiplier, Equalized Active Daily Continuation

Continue reading “Futures Market & Commodity Trading Daily Levels August 6th 2010”

Mini Dow Jones Futures Contract and Resistance Levels August 4th 2010

Posted on by Ilan

“The Current Uptrend is Strong”

Daily chart of Mini Dow Jones futures contract for your review below with possible Elliot Wave scenarios. The 82 reading suggest the current uptrend is strong. If the 3rd wave we are in will continue than next target will be 10723. If the market pulls back first to possible 4th wave, support is at 10490. Of course, when its all said and done what matters most is price action and not what we want or hope the market will do.

YM - E-Mini Dow Futures - $5 Multiplier, Equalized Active Daily Continuation
YM – E-Mini Dow Futures – $5 Multiplier, Equalized Active Daily Continuation

Continue reading “Mini Dow Jones Futures Contract and Resistance Levels August 4th 2010”

Summer Futures Trading Resistance Levels August 3rd 2010

Posted on by Ilan

“Today’s session was classic example of a Summer Trading Session”

Fairly boring trading day on the futures market. Low volume and overall not many set ups after initial move up. It is what it is. As a futures trader, know what market environment you are in and don’t try to force trades if you don’t have the set ups you are looking for. Some days, the market provides better opportunities than others, sometimes it provides many more risks. Patience is key. No trade is better than a bad trade.

Continue reading “Summer Futures Trading Resistance Levels August 3rd 2010”

Online Trading and Futures Market Resistance Levels August 2nd 2010

Posted on by Ilan

“GOOD TRADING!”

Wishing all of you a great trading month during August 2010! Enjoy the weekend, clear your mind from trading emotions and recharge for the new week / month.

Futures & Commodity Trading Levels (Potential Support/Resistance):

Futures & Commodity Trading Levels (Potential Support/Resistance):
Futures & Commodity Trading Levels (Potential Support/Resistance):

Continue reading “Online Trading and Futures Market Resistance Levels August 2nd 2010”

Best Trading Practices: Always Ask Your Futures Broker July 30th 2010

Posted on by Ilan

“Last Trading day of the month tomorrow.”

At any time traders, especially self directed futures traders, must be aware of first notice day, last trading, economic reports etc.

Tomorrow is first notice day for August Gold futures contract – As your futures and commodity broker we try our best to keep many of you informed via this daily blog but always make sure you contact your futures broker with any questions you may have.

Daily chart of September e-mini Dow Jones below for review. I am not sure about direction to be honest. Both bulls and bears have a case and at this point we are trading in a band between 10293 and 10536, which is a wide trading range.

YM - E-Mini Dow Futures - $5 Multiplier, Equalized Active Daily Continuation
YM – E-Mini Dow Futures – $5 Multiplier, Equalized Active Daily Continuation

Continue reading “Best Trading Practices: Always Ask Your Futures Broker July 30th 2010”

Online Futures and Commodities Market Reports for July 28th 2010

Posted on by Ilan

“The Dow Jones Average is leading the way”

Market made recent highs overnight, backed down and managed to close unchanged.

I think with this recent move, it is the Dow Jones average which is leading the way.

Below is a daily chart of the mini Dow Jones futures along with some Fibonacci levels.
My speculation is that an hourly close during the day session tomorrow above 10520 can trigger 10760,
on the flip side, an hourly close below 10435 can bring 10320 much closer.

YM - E-Mini Dow Futures - $5 Multiplier, Equalized Active Daily Continuation
YM – E-Mini Dow Futures – $5 Multiplier, Equalized Active Daily Continuation

Continue reading “Online Futures and Commodities Market Reports for July 28th 2010”

EMini S&P 500 Charts, Day Trading Tips & Resistance Levels July 27th 2010

Posted on by Ilan

“Today’s Futures Trading session was lower volume”

Well like I said before, each day-trading session in the commodities and futures markets can wear a different dress. Today’s trading session was lower volume, indecisive to start with but with enough intra-day swings in price action to provide some trading set ups.

I mentioned before in this blog as well as in my day-trading webinar that if a trader can get an early sense to the type of trading day that is about to unfold, he/ she can really increase their chances by using methods/ indicators and set ups that work better for the different trading days ( trending, choppy, volatility on both sides etc.)

In between, below you will see a daily chart of the mini SP 500 with what may be some resistance levels on the way up and possible support levels if we decide to turn around and head back south ( last week we had more than a few changes in market direction)

Continue reading “EMini S&P 500 Charts, Day Trading Tips & Resistance Levels July 27th 2010”

One Way to Eliminate Fear and Greed While Day Trading

Posted on by Ilan

One Way to Eliminate Fear and Greed While Day Trading

It is a known fact that fear and greed can be a trader’s worst enemies. I’ve found one way that has helped some clients deal with fear and greed and their cousin, “getting out of winners too soon and staying in losers too long.”

What is it? Entering multiple contracts

In order to enter multiple contracts while day trading, one has to have the appropriate risk capital and margin requirements. But the advantage of trading more than one “unit” or splitting your trading size into two or more parts is as such:

If you enter a trade with one contract (or if you are treating your trading size as one unit, meaning you enter a trade with 4 contracts and exit the trade with 4 contracts), you can face a very quick dilemma (especially when day-trading). Consider the two following scenarios:

1. You get in and very quickly you are up 2 mini SP points…what do you do? Do you take profit? Bring your stop loss closer? How do you avoid getting out too early or too late?

2. You enter a trade and it goes against you rather quickly…if you get out then it is a loser…but the little voice in your head says “what if the market goes back up?”

Continue reading “One Way to Eliminate Fear and Greed While Day 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.