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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 Mini Indices Volume and Mini S&P Chart 4.22.2014

Posted on by Ilan

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

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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 April 22, 2014

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Extremely light volume in the markets today as Europe was still on a holiday. Volume in the mini SP contract was about 35% of the average normal daily volume as of lately. I suspect that both market participants and volatility should return tomorrow from the Easter holiday.

Daily chart of the mini SP for your review below:

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Continue reading “Futures Mini Indices Volume and Mini S&P Chart 4.22.2014”

Mini Russell 2000 Chat & Futures Trading Levels 4.14.2014

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 April 15, 2014

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Mini Russell daily chart for your review below.

TFE - Russell 200 Index Mini, Equalized Active Daily Continuation
TFE – Russell 200 Index Mini, Equalized Active Daily Continuation

Triangles Offer Traders Important Forecasting Information by Elliot Wave International 4.11.2014

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 April 11, 2014


Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Triangles Offer Traders Important Forecasting Information
Find out about 14 Elliott wave trading insights
By Elliott Wave International

EWI analyst Jeffrey Kennedy explains why triangles offer traders important forecasting information. Take a look at a chart that shows a real-world example of the triangle price pattern, and read Jeffrey’s comments.Read more.

Continue reading “Triangles Offer Traders Important Forecasting Information by Elliot Wave International 4.11.2014”

Setting Daily Profit Target and Money Management for Futures Trading 4.10.2014

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 April 10, 2014


Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

I wrote a good article a few years back about day trading money management and one of my points was that it is my personal opinion that if a day trader sets a daily target profit and walks away when he or she achieves that target, they will fare better in the long run.

I might be wrong but think about it, if you are trading a $10,000 account and have a daily profit target of $500. How many times were you there intraday? Would your account equity be in a better shape now if you walked away each day when you made $500 ( in addition to implementing a daily stop level?)

The profit level will be different for each trader based on account size, trading style, aggressiveness level etc. but from talking with many different clients and observing many different clients I think that setting daily profit  AND daily money management will help most traders financially as well as emotionally.

If you want to read the full article and you are a client, simply email me your name and account number and i will email the PDF to you. If you are a prospect, please share with me your trading experience and software you are using and I will be happy to email it to you as well.

Continue reading “Setting Daily Profit Target and Money Management for Futures Trading 4.10.2014”

Futures Trading Article by Jim Wyckoff & Levels 4.09.2014

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 April 9, 2014


Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Knowing What You Don’t Know in Trading Marketsby Jim Wyckoff www.jimwyckoff.com  

 

The headline of this educational feature may be a bit confusing, but I will explain what I mean shortly. First, I want to reiterate that trading futures, stock and FOREX markets is not an easy undertaking. It disgusts me that there are a few unsavory people in our industry that portray trading as an easy, get-rich-quick scheme, or as some endeavor for which there are “secrets” to be learned from those who hold “trading secrets.”Folks, the plain truth is that there are no trading secrets and no easy paths to quick success in trading markets. Beware of anyone who tries to tell (or sell) you such.One of the biggest obstacles to success in trading markets is a lack of knowledge and understanding of the process of trading. The “process of trading” includes understanding financial leverage, market behavior and trader psychology. Understanding the process of trading can be achieved with perseverance and a willingness to continue to learn.It’s not coincidental that trading markets is similar to most other human endeavors: Hard work and experience are required to achieve notable success. A person who enjoys classic automobiles would not attempt to tear down and successfully rebuild an engine without having some previous experience, or without having learned about the workings of an automobile engine-including knowing about the tools involved in the operation.I have written numerous times that learning about different trading tools, different markets and different trading strategies provides a solid foundation on the road to trading success.Ironically, I believe a major advantage of being an experienced trader is knowing what you don’t know about markets and trading. Yes, you heard that right: Knowing what you don’t know.

What do I mean by this? I mean that there are certain elements of futures trading about which I do not “know,” and never will.

I don’t “know” what markets are going to do in the future. Some may ask, “How can you be in this business and not know what markets are going to do? How can you be a successful trader and not know where market prices are going?” My answer is that market analysis and trading (at least the way I see it) is not a business of bold predictions, but one of exploring market probabilities based upon market knowledge, price history, human behavior and trading experience. The fact that I “know that I don’t know” exactly what a market will do gives me a trading edge. Why? Because I will exercise more caution and think about and plan for what could happen if a trade turns against me. I know that some trades will indeed turn against me and that I need to have the capital to trade another day, so I won’t “put all my eggs in one basket.”

I prudently place protective buy and sell stops on trades because I do not “know” what the markets will do. I would rather absorb a small trading loss and be termed “wrong” about that trade, as opposed to risking trading with no protective stops and seeing a small loser turn into a big loser–all in the “hope” the market will turn around so I can be proven “right.”

(Do you see what I mean when I discuss human behavior? Most of us don’t like to be “wrong,” and will make decisions so that we are not wrong. In trading, sometimes the decisions traders make to avoid being “wrong” are not prudent decisions for those wanting to be successful traders in the long run.)

One sure fire clue I get that a trader does not have much trading and market experience (and needs more!) is when the trader tells me he or she “knows” a market is going to do something. What can be even worse is when a trader thinks he or she “knows” what the market is going to do, and then makes a trade that turns out to be a winner. That type of psychological reinforcement of a flawed trading characteristic only sets up the trader for a bigger disappointment at some point in the future-likely sooner rather than later.

Traders absolutely must respect the markets. Only the markets are 100% right. Traders who think they “know” exactly what a market will do are not showing the markets respect.

That’s it for now. Next time, we’ll examine another important issue on your road to trading success.

Jim Wyckoff is the proprietor of the analytical, educational and trading advisory service, “Jim Wyckoff on the Markets.” He has a website at www.jimwyckoff.com and his email address is jim@jimwyckoff.com

Benefits of Trading Futures Online

Posted on by Ilan

Full-service walk-in brokerage firms have been the traditional institution trusted within the investment world. Currently, a new way of trading has been edging its way to the forefront – online futures trading. Trading online has provided many new possibilities for would-be investors, and in today’s day and age, there is almost a necessity to find more comprehensive, faster, real-time ways to interact within the commodities markets.

The internet puts any given market and its activity into electronic format, which gives investors quicker access to trading positions. Futures trading, particularly, is a type of trade in which an investor takes a position on a contract with a set price of an underlying commodity, and agrees to either buy or sell the underlying asset in raw or currency form at a set future date. Below is a comprehensive explanation of the specific benefits of trading futures contracts with these added benefits. By taking them into consideration with an investor’s knowledge of various markets, traders can put their strategies into context and take unique positions with their investments.

  • Reduced Commissions: Brokers put a tremendous amount of work into studying market trends, negotiating trades, and processing orders for clients, so it comes as no surprise that their invested time and effort costs the investor a great deal. By trading online, traders can cut commission costs by fifty to seventy-five percent. An investor can expect to pay out five to ten dollars per trade while trading futures online, as opposed to the forty to seventy dollars per trade with a full-service broker. There is also an option for broker assisted accounts in which an investor pays a slightly higher rate of fifteen to twenty dollars per trade with trading advice and broker suggestions. Either way, the savings over time are valuable.
  • Learning Curve: An investor can learn a great deal through online trading by taking more control in day to day decisions. Many brokers can assist a trader with the basics of futures trading, however the ability to take a more proactive approach to trading futures is an investor’s biggest asset. If an investor makes a bad trading decision, albeit costly, the decision can acclimate a trader to market temperaments and provide valuable experience as to the responsibility involved in reaching their trading goals.

Continue reading “Benefits of Trading Futures Online”

Futures Trading Rules & Unemployment Reports 04.04.2014

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 April 4, 2014


Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Today I must share an observation that may help many of you.

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 to a psychologist not 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 DON’T 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.

ON A SIMILAR NOTE:

Monthly unemployment figures come out tomorrow morning. That would be a great time to excessive discipline and control of what is written above…..

Continue reading “Futures Trading Rules & Unemployment Reports 04.04.2014”

Futures Levels and Economic Reports for 4.02.2014

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 April 2, 2014


Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!


My preferred chart type for daytrading as of the last 9 months been range bars. below is my mini SP chart using 8 ticks range bar and applying my DIAMOND ALGO:

EP - E Mini S&P 500, Equalized Active Continuation, Primary Session : Range Bar, 8 Tick Units
EP – E Mini S&P 500, Equalized Active Continuation, Primary Session : Range Bar, 8 Tick Units

Would you like to have access to my DIAMOND and TOPAZ ALGOs as shown above

and be able to apply for any market and any time frame on your own PC ?  You can now have a three weeks free trial ( if you did not have one before) where I enable the ALGO along with few studies for your own sierra/ ATcharts OR CQG Q trader.

To start your trial, please visit:

If so, please send me an email with the following information:

  1. Are you currently trading futures?
  2. Charting software you use?
  3. If you use sierra or ATcharts, please let me know the user name so I can enable you
  4. Markets you currently trading?

Continue reading “Futures Levels and Economic Reports for 4.02.2014”

How to Trade Copper Futures

Posted on by Ilan

Copper Futures Trading is one of the most popular vehicles in the industrial metals market. Copper is used in a wide variety of markets such as construction, plumbing, manufacturing and architecture. With such a wide array of usages, trading copper offers many opportunities for gain. More and more investors are looking to raw commodities as trading vehicles as they provide more liquidity and volatility within their respective markets. Trading raw commodities as futures contracts also allows for better price transparencies.

Copper is usually a great indicator of economic growth within a region. As the demand for copper rises, the more valuable the commodity becomes given its vital contributions to industrial and urban development. Worldwide copper consumption has been on the steady rise since 2011, with China being the world’s top copper consumer. Industrial copper producing companies use the futures market to hedge against losses and for price mitigation. Investors generally use the copper futures market to leverage their capital against price fluctuations to generate returns on their investments.

A copper futures contract represents 25,000 pounds of copper. Standard trading hours operate from Sunday through Friday beginning at 6:00 p.m. until 5:15 p.m. the following day Central Standard Time, allowing a 23 hour trading platform. The 45 minute break allows for the close out on the previous day’s results. Trading in copper futures requires paying close attention to market fluctuations and remaining active on developing markets. Because copper moves within the market at high volatility, neglecting a position for even a short period of the day can be very costly. Below are a few of the most popular exchanges copper futures trade on:

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Futures Levels & Economic Reports 3.27.2014

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 27, 2014

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Option Strategies for Both Hedgers and Speculators going into the March Prospective Plantings report.

http://www.cmegroup.com/education/files/hightower-report-2014-03-24.pdf

Continue reading “Futures Levels & Economic Reports 3.27.2014”

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.