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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!

Take Profits or Wait for Home Run? 8.16.2016

Posted on August 15, 2016August 17, 2016 by Ilan

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

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 August 16, 2016

Hello Traders,

Greetings!

Do I hold on for the “big winner” or take small profits?

To start with, this is a good problem…this means you are taking some winning trades. The answer is not a simple yes or no.

One must have a combination of both smaller, consistent winners. Also a few “runners” large profit trades, regardless if you are day trading, position trading or swing trading.

Some traders solve the problem by breaking their trading size into more than just 1 unit.

Entering Multiple Contracts: Philosophy

I think that entering multiple contracts does 3 good things for you…

Reduces fear…

Reduces greed…

And gives you a chance to hang in there for the large winners or what I call a “runner”….

Continue reading “Take Profits or Wait for Home Run? 8.16.2016”

Sugar Rally – How Sweet?

Posted on August 11, 2016August 17, 2016 by Ilan

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

Hello Traders,

Greetings!

How Sweet Will The Sugar Rally Be? Ilan Levy-Mayer | Wednesday, 10 August 2016 11:10 (EST)

The sugar market has made a significant upside move over the past few days and weeks.

Weather concerns for part of the growing areas in Asia, as well as strength in Brazilian real contributed to this rally.

From a technical point of view, I feel this market is overbought and over-extended, but when fundamentals take over, you can use the charts for wall decoration…That being said, I will be looking for signs of exhaustion on the daily and weekly charts.

The chart below is a monthly chart of sugar, and you will see that we are trading right against recent highs and I got a sell signal in the shape of my red diamond. However, I don’t have a crystal ball, hence I will look on the daily chart for a similar clue before trying to go against the trend and go short.

Read the full article along with my chart set up at:
https://www.equities.com/news/how-sweet-will-the-sugar-rally-be

Continue reading “Sugar Rally – How Sweet?”

Few Ways to Enter a Futures Trade 8.11.2016

Posted on August 10, 2016August 10, 2016 by Ilan

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

Hello Traders,

Few ways to enter a trade….

There are so many different aspects to trading.

From financial, emotional aspects to actual details of when to enter a trade, when to exit a trade and SO MUCH more in between…..

An important part of trading is trade entry. Assuming a trader knows why he/ she about to enter a trade the next step sounds simple right? Simply buy or sell the contract you wish to trade….

Many times it is that simple; depending on the time frame you are trading you may simply buy @ market and get the market price at that time. Some traders try to make small profits where every tick counts hence they may use the “buy bid” or “sell ask” button in order to get in at the best market price at that time. Many times you may save a tick by doing so but other times you may find yourself chasing the bid or the ask…

Continue reading “Few Ways to Enter a Futures Trade 8.11.2016”

Trading Systems Live Performance 8.10.2016

Posted on August 9, 2016August 9, 2016 by Ilan

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

Hello Traders,

Another summer trading type of day….Low volume, low volatility.

Might be a good time to see what some of our auto trading systems are doing:

https://www.cannontrading.com/futures_tradingsystems/

Continue reading “Trading Systems Live Performance 8.10.2016”

What should you do when stock index futures are “dead”? 8.09.2016

Posted on August 8, 2016August 9, 2016 by Ilan

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

Hello Traders,

Summer trading at its best….8 points range on the Mini SP 500 during the primary session…As a trader, that can be pretty depressing. Few things you can do when stock index futures are “dead”:

Wait for them to come back a live and simply don’t trade until that happens.
Look at weekly Mini SP500 options as an alternative
Look at other markets ( crude oil had a nice volatile range today)

In between, feel free to reach out to us here at Cannon with any questions, feedback and comments and let us know how we can help you achieve your goals!

Here is some good reading material for when the market is slow:

https://www.cannontrading.com/community/futures-market-ranking-30-market-events

Continue reading “What should you do when stock index futures are “dead”? 8.09.2016″

What Market to Trade? Which Direction to Attack?

Posted on August 3, 2016August 5, 2016 by Ilan

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

Hello Traders,

Stock index futures have been choppy recently and “counter trend” methods seem to work better than others. That will change once the market breaks down sooner or later and volatility returns.

On the other hand we have markets like gold and crude that make big moves more often than not…just different type of personalities of different markets.

One tool I have been using more and more recently, is the Edge. A daily newsletter published by ExitPoints.com which provides you what markets to pay attention to and WHICH direction to attack that specific market from.

Today they provided me with two good ones, gold from the short side and crude oil from the long side.

If you have not had a trial for this service, I recommend signing up for the FREE TRIAL and then UTILIZING a Cannon broker to get a better feel on how one might use this newsletter and information.

Continue reading “What Market to Trade? Which Direction to Attack?”

What type of trading should you be engaged in? 8.03.2016

Posted on August 2, 2016August 5, 2016 by Ilan

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

Hello Traders,

Not all traders are built the same way… Some traders are more suitable for day trading, others perhaps for swing trading yet the third type may be a much longer term traders using options. Some prefer not to trade themselves and have someone else manage their trading and so forth.

I wrote this article ” What’s your trading blood Type?” a few years back and i think it is a great read for anyone considering trading or perhaps getting back into trading or maybe for those who are trading currently but not sure they are using the right “type of trading”.
Read the article here
Continue reading “What type of trading should you be engaged in? 8.03.2016”