Open An Account
Free Demo Account Subscribe Here

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!

Silver Futures Insight 3.17.2016

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Thursday March 17, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Greetings!

A note on Silver by my colleague, John Thorpe who has over 25 years of experience starting on the floor of the CBOT.

Silver Futures

Here is a daily chart with simple moving averages, a 25 day slow  and 10 day fast, the buy signal is still intact. With the fast(red) SMA penetrating the slow (blue) from underneath. RSI in the neutral range.

Daily Silver Futures Chart With Simple Moving Averages
Daily Silver Futures Chart With Simple Moving Averages

FOMC Tomorrow and Managing Trading Size 3.16.2016

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Wednesday March 16, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Greetings!

FRONT MONTH for STOCK INDEX is JUNE!!

The FOMC interest rate decision is due at 2:15 ET in the US tomorrow ( Wednesday, March 16th ). Also more than a few economic numbers ahead of the announcement.

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 market.

The following are suggestions on trading during FOMC days:

Continue reading “FOMC Tomorrow and Managing Trading Size 3.16.2016”

Managing Your Futures Trading/Position 3.15.2016

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Tuesday March 15, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Greetings! 

FRONT MONTH for STOCK INDEX is JUNE!!

A note on managing trade size by my colleague, John Thorpe who has over 25 years of experience starting on the floor of the CBOT.

Managing your trading/position size is crucial to long term success regardless of style.

Daytrading, Swing or long term position trading.

In order to select the size you will employ make a mental note of three things before you trade.  The Foundation of Trading your plan is first determining the size you will be employing, the number of contracts.

We must assume your risk capital is fixed.

1)  How liquid is the contract I will be trading?

Are there frequent price gaps, lack of continuity with bid/ask spreads.

What is the Open Interest and Volume relative to other contracts in the same industry, index , futures contract type.

Continue reading “Managing Your Futures Trading/Position 3.15.2016”

Rollover Notice for Stock Index Futures 3.10.2016

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Thursday March 10, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Greetings! 

I personally will start trading the June mini SP this Friday but most traders will rollover tomorrow: 

Rollover Notice for Stock Index Futures

Important notice: For those of you trading any stock index futures contracts, i.e., the E-mini S&P, E-mini NASDAQ, E-mini Dow Jones, the “Big” pit-traded S&P 500, etc., it is extremely important to remember that tomorrow, Thursday, March 10th, at 8:30 am CDT  Time is rollover day.

Starting March 10th, the June 2016 futures contracts will be the front month contracts. It is recommended that all new positions be placed in the June 2016 contract as of March 10th. Volume in the March 2016 contracts will begin to drop off until its expiration on Friday March 18th.

The month code for June is M6.

Traders with electronic trading software should make sure that defaults reflect the proper contract as of Thursday morning.

Please close any open March Currency positions by the close on Friday the 11th.

Should you have any further question please contact your broker.

Continue reading “Rollover Notice for Stock Index Futures 3.10.2016”

The Power of Diversification When Trading 3.08.2016

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Tuesday March 8, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Greetings!

The Power of Diversification When Trading

I believe that if you are only trading (daytrading) one market you may be missing out on diversifying yourself by trading other markets.

Just like if you have a portfolio that is not diversified, you expose yourself to more risk, I think the same holds with futures.

I like to daytrade at least 3 markets or at least follow 3 markets and see which ones offers set ups that I like. If you only trade the ES, you will have many days during the year where there is lower volatility, tight ranges and perhaps just “dead days”. However if you are also following bonds and crude oil you have better chances to get in trade set ups that you prefer. Not only that there are times that one trade will make up for another one that is not going so well etc.

Continue reading “The Power of Diversification When Trading 3.08.2016”

Gold Futures Heikin-Ashi Chart 3.03.2016

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Friday March 4, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Greetings!

Daily chart of the Gold futures for your review. Heikin-Ashi chart type.

We are trading against first major resistance since this bounce started and tomorrow is monthly unemployment!! Could be a volatile day:

Gold Futures Heikin-Ashi Chart March 3rd, 2016
Gold Futures Heikin-Ashi Chart March 3rd, 2016

Continue reading “Gold Futures Heikin-Ashi Chart 3.03.2016”

Mini S&P Heikin-Ashi 3.03.2016

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Thursday March 3, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Greetings!

Daily chart of the mini SP 500 for your review. Heikin-Ashi chart type.

We are trading against first major resistance since this bounce started:

Mini S&P Heikin-Ashi March 3rd, 2016
Mini S&P Heikin-Ashi March 3rd, 2016

Continue reading “Mini S&P Heikin-Ashi 3.03.2016”

Keeping A Futures Trading Journal 3.02.2016

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Wednesday March 2, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Greetings!

I have written in the past about the importance of keeping a trading journal.

Many benefits for doing so. From the mental / emotional aspect to the bottom line of keeping notes on market behavior which you can use down the road.

A good example is trading on the last trading day of the month ( example for me is that I dont run one of my systems for bonds on the last trading day of the month). Another example is behavior of markets ( look at stock index futures) on the first trading day of the month.
I think part of the reason for the unique market action ( not always but quite often) during these two days is the activity of large traders, CTA’s who need to report monthly performance, institutions who may need to establish longer term positions on the first of the month etc.

Continue reading “Keeping A Futures Trading Journal 3.02.2016”

ICE Data and Alternatives

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Tuesday March 1, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Greetings!

ICE data and alternatives

So as many of you know the ICE exchange has decided to charge all users (professionals and non professional) $110 per month to receive real-time data. This is compared to the CME which charges $86 for professionals (brokers, hedge funds etc.) but a “normal amount of $5 to retail users ( i.e. large percent of the trading public). If you ask me not a bright move on the part of the ICE exchange and they may see volume drop quite a bit on certain markets.

In between, I have more than a few clients who are trading the mini Russell 2000 and like it, but are not so sure about paying $110 per month for the privilege to trade this one….While ICE also hosts coffee, sugar, dollar index and a few other markets, the mini Russell is so far the one that caught most interest.

I did some homework and while the CME does offer the mini Russell 1000, the volume on this one, so far is pathetic….(I think it traded 83 contracts on Friday). HOWEVER….the CME for the same $5 per month most users pay to trade the ES and NQ along with currencies, also has the mid cap 400. Symbol is EMD on the Transactand Shogun platforms as well as E-futures International.

Not bad volume, same tick size as mini Russell 2000 and from the quick research seems to move in similar ways. Worth exploring, perhaps using in demo mode or simply following price movement as the ICE change will go in effect April 1st.

Continue reading “ICE Data and Alternatives”

Trading 201: Day Trading Crude Oil futures

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Friday February 26, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Greetings!

Trade management is more important than Market Analysis….

Trading 201: Day Trading Crude Oil futures

Crude Oil is one of MY favorite futures market for day trading. Before I dive in and share with you how the volatility in crude oil fits my risk tolerance for day trading and provide a couple of chart examples, we should review some of the specifications of Crude Oil Futures.

Crude Oil Futures have monthly expiration. So each month we trade a different contract month, so one needs to know when is the first notice day and last trading day for crude oil futures in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into delivery situation.

Next is the contract size. Crude Oil futures are based on 1000 barrels. To be honest from a day trading perspective all I care is that each tick or 1 cent fluctuation is $10 against me or in my favor per contract. That means that a move from 92.94 to 92.74 = $200.

Continue reading “Trading 201: Day Trading Crude Oil futures”

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.