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Category: Trading Guide

Trading guide, as you can understand from the term, is a compilation of tips and tricks that can help you in trading. Whether you are new to the world of trading or are an expert in it, a trading guide is a very useful document.

Moreover, every trading guide has a specific purpose. So, if you are thinking about trading, a trade guide will serve you like a self-help manual. So, whether it is about trading options, metals, grains or any other futures contract– a trading guide has all the information in it.

You don’t need to buy one, for you will able to find a number of them online. We at Cannon Trading help you make the most of your trading ventures. Therefore, we have compiled some of the best trading guides for you to learn from. Listed under this category archive are some trade guides using which you can use to help you succeed in many trading ventures. There is enough information in these guides that can help you master the art of trading futures and options smartly.

Risk with Trading | Support and Resistance Levels

Posted on by Ilan

Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – March Corn, March Wheat, Jan Beans, March Silver
5.Economic Report for February 8, 2012

1. Market Commentary

Hello traders,

Another up day on LOW VOLUME…..

Not much to share as far as market view so another educational piece for your reading pleasure below:

RISK

It is a four letter word. As traders it is something that we thrive on and dread. We chase and fear. We look for and look to avoid. It is RISK. Without it, there is no opportunity for profit. Without it trading lacks potential. With it, failure and heartache are the consequences when it is abused.
Risk itself is not a bad thing. When it is misused by traders, it becomes a problem. Controlled risk presents traders with exciting and profitable opportunities. Uncontrolled, it brings the end to the dreams and careers of many traders.
How should we as traders confront risk? The first step is to respect it. Realize the damage it can do to our account equities when it is abused. The two most important tools that we have to control risk are stops and position size. Oh, I know, you hate stops. We all do. We have all been stopped out at the high or low only to see the market immediately move in the direction that we thought it would. But without using stops on every trade that we enter, disaster will eventually prevail. I have a love/hate relationship with my stop orders. I hate to place them, but love how they save me from large, unacceptable account crushing losses. It is the same for all successful traders. Those foolish enough to trade without stop protection are risking disaster on every trade. Unless you as a trader have developed perfect discipline to exit a losing trade quickly, and according to your pre-entry criteria, stops are mandatory. And admit it, at least to yourself…..do you have perfect discipline? I think not.
The other critical element in controlling risk is position size. By this I mean the percentage of your equity that you are risking per trade. I do not risk more than 3.5% of my equity on any trade. Some traders are comfortable risking 5% of their equity. This amount for me is an amount of risk with which I am comfortable. It allows for aggressive trading, and it allows me to stay in the game ( financially and psychologically) even after a series of losses. This aspect of strategy building is often forgotten by the novice trader. These folks have dreams of “the big hit” or the monster trade that allows their account equity to soar to heights unimagined by mere mortals. The problem is, oops, what if you are wrong? This type of trading/thinking is out of control. It leads to broken dreams and short careers. You must always remember that this is a highly volatile, sophisticated business. Treat it as such. If you want to gamble, jump on an airplane and visit Las Vegas.
The futures markets are highly leveraged, as we all know. Those traders that abuse risk by not respecting its power will eventually join the long list of former futures traders. Risk must be treated like a beautiful, intelligent woman. Treated with respect, wonderful things can happen. But, abuse it, or disrespect it, and suffer the consequences.
As a futures trader you have to embrace taking risk. Understand its impact. Respect it. Stay in control of it. Develop a trading method that makes risk an asset to your account instead of an enemy of your account. Risk/reward analysis is an important part of our everyday lives. Can I make it thru the intersection before the light turns red? Do I need to re-apply my sunscreen? Should I have one more beer before driving home? In trading, always keep in mind your risk versus the reward. A 50% gain in your account is not equal to a 50% loss of equity. A 50% winning trade puts you up by one half. But a 50% loss means that you have to double your equity to get back to your starting point. Respect your risk levels. Trade only using a risk level that you, personally, are comfortable with.
Rome wasn’t built in a day. Neither will your account be built in a day, or a week. Respect risk. Enjoy it’s benefits and may your trading in 2012 will produce profits and satisfaction. Enjoy the ride.

2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000

Contract (Dec. 2011) SP500
(big & Mini)		 Nasdaq100
(big & Mini)		 Dow Jones
(big & Mini)		 Mini Russell
Resistance Level 3 1363.33 2560.17 12988 840.63
Resistance Level 2 1354.52 2547.33 12919 835.17
Resistance Level 1 1349.63 2537.67 12876 831.23
Pivot Point 1340.82 2524.83 12807 825.77
Support Level 1 1335.93 2515.17 12764 821.83
Support Level 2 1327.12 2502.33 12695 816.37
Support Level 3 1322.23 2492.67 12652 812.43

Continue reading “Risk with Trading | Support and Resistance Levels”

8 Steps to Successful Futures Day Trading | Support and Resistance Levels

Posted on by Ilan

Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – March Corn, March Wheat, Jan Beans, March Silver
5. Economic Reports for Thursday, January 12, 2012
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1. Market Commentary

Cannon Trading Education
8 Steps to Successful Futures Day Trading

Introduction
My name is Ilan Levy-Mayer and I am the Vice President and Senior Broker at Cannon Trading. I came up with the following personal observations after serving online traders worldwide for more than 14 years. The following steps are guides to progress, and are not necessarily in sequential order. Some of them are always required, but each trader is different and will relate to these stages in their own ways. While attempting to learn and progress, one must keep in mind that futures trading is risky and can involve significant losses.

1.Education
Hopefully if you are already trading you have completed your initial education: contract specs, trading hours, brokers, platforms, the opportunities as well as the risk and need to use risk capital in futures, and so on. Understanding this information is essential to trading. The second type of education is ongoing: learning about trading techniques, the evolution of markets, different trading tools, and more.

2.Find a System
I am definitely not advising you to go on the web and subscribe to a “black box” system (using buy/sell triggers if don’t know why they are being generated). What I am advising is developing a trading technique: a general set of rules and a trading concept. As you progress, you may want to put the different rules and indicators into a computerized system, but the most important factor is to have a focus and a plan. Don’t just wake up in the morning and trade “blank.” Continue reading “8 Steps to Successful Futures Day Trading | Support and Resistance Levels”

TheTradeNews.com December 2011/January 2012 Outlook | Support and Resistance Levels

Posted on by Ilan

Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – Corn, Wheat, Beans and Silver
5. Economic Reports for Monday, December 5, 2011

 

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1. Market Commentary – TheTradeNews.com December 2011/January 2012 Outlook

Act Now! Don’t Delay!

The past year has been characterized by a series of false starts that ended in successive failures to restore confidence in the economy and markets. The shaky global economy, battered by the 2008 financial swoon, kept trying to get up off the mat only to be clobbered again by prevaricating politicians who failed to lead us out of crisis and by a series of once-in-a-generation events, which never allowed markets to gain any traction. The Japan earthquake, the Arab Spring, the debt ceiling debacle in Washington, and round two of the Greek crisis cut short nascent rallies in confidence. The equal and opposite reaction has been a mounting pile of uncertainty, growing as fast as the debt levels in troubled economies.
The failure to restore confidence has led to subpar growth in the G7 which is starting to erode the Asian economic boom as well. Economists have trimmed growth expectations for this year and next, with many now predicting Europe is bound for recession, which could in turn drag the US into a double dip, and dent China which relies on Europe as its biggest export market.
In the face of these dark clouds gathering, political leaders are failing to act boldly on a global scale. Washington remains at loggerheads over the most meager deficit reduction plans, Beijing has only started to realize it may need to brace for a hard economic landing, and Brussels keeps putting off its day of reckoning by agreeing to “plans for a plan.” Central banks have papered over some of the politicians’ mistakes, but can only do so much. The global economy will continue to suffer and may even spiral lower if political leaders continue to kick the can down the road and don’t rally at this perilous moment to enact forceful strategies to restore confidence.
You can access the full article HERE Continue reading “TheTradeNews.com December 2011/January 2012 Outlook | Support and Resistance Levels”

Trading Lessons from Janice Dorn | Support and Resistance Levels

Posted on by Ilan

Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Economic Reports for Tuesday, November 29, 2011

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Hope everyone had a great Thanksgiving holiday/ long weekend and are ready for the final stretch of 2011.

Good reading material for your review below:

A LITTLE BIRD TOLD ME

Janice Dorn, M.D., Ph.D.
www.thetradingdoctor.com

Janice Dorn, M.D., Ph.D. is a Financial Psychiatrist and Financial Futurist. Dr. Janice Dorn is believed to be the only Ph.D. (Brain Anatomist) and M.D. (Board-Certified Psychiatrist and Addiction Psychiatrist) in the world who actively trades, writes commentary on the financial markets and coaches fellow traders. Dr. Dorn has been trading the gold futures markets full time since 1993. She has written over 2000 articles on trader and investor psychology, and coached over 600 traders. Her website is www.thetradingdoctor.com and you can sign up to receive all new postings at this link: http://www.thetradingdoctor.com/joinfreemailinglist.html

Knowing yourself is the beginning of all wisdom…Aristotle

Bobby was a lonely trader who bought a talking bird to keep him company. Little did he know what he was getting himself into, since the minute Bobby tried to put it into a cage, the bird began speaking rapidly:

“Don’t put me in a cage, please. Let me free and I will tell you the three secrets of successful trading? I will, I promise you. Just let me go!”

Bobby was tired, his resistance was low from not working out and eating junk food plus he was on a three-month losing streak. This combination made the bird’s offer irresistible.

“Tell me, bird, what are the secrets?”

“Promise me you’ll pay close attention, Bobby?”

“Yep.”

” OK. Here they are:”

Ignore the hype. If something seems too good to be true, it probably is!

Know yourself and what you are capable of doing. Know your strengths and your limitations

Always strive to do good things and don’t forget the good you have done. It comes back to you in ways that you may never suspect.

Bobby was not particularly impressed, especially with the “do good” part, but he let the bird go anyway. Flying away quickly, the bird rested on a tree branch and immediately started touting the trader.

“Hey, trader guy-Guess what? Just before you bought me and brought me home to put me in some miserable cage, I swallowed a rare, authentic alexandrite gemstone. If you had kept me, I might have told you about it— but I might not have because you would want to kill me, find the precious stone, sell it and get rich. ”

Bobby was furious, and regretted the instant he let the bird fly away. He lunged toward the tree and tried to climb it to get at the bird. Sadly, he was so out of shape and full of rage he couldn’t make it half-way up without falling down to the ground.

The bird watched this and then started lecturing to Bobby:

“You silly trader! You heard what I said but you didn’t listen one bit!

You did exactly what I told you not to do!

You believed the hype. What’s the chance that a bird would swallow a rare and precious gem and then tell you about it? Do you think I am such a stupid bird with a little brain that would risk being killed by you so you could get the stone out of my belly?”

Before Bobby could utter one word, the bird continued:

“You have no idea what your abilities are. You tried to climb the tree to capture me, and couldn’t even make it half-way up because you are so out of shape.
Finally, you forgot your good deed and did not keep your promise. You let me free then changed your mind and tried to get me back.
You failed in every respect. You did not keep your promises to me or to yourself.”

Bird 3: Bobby 0.

What lessons can you learn about trading and living from this story?

We are drowning in information overload. It’s especially bad because there is so much misinformation, disinformation and garbage competing for and assaulting our senses every day. As a trader, it is critical to filter out the signal from the noise. There is way too much hype and too many people trying to sell you something that is not real or true.

The instruction is to look beyond the noise, the hype and the predictions. If something sounds too good to be true, it probably is. There is no holy grail and there is no magical system that wins 100% of the time.

How many legs does a dog have if you call the tail a leg? Four— calling a tail a leg doesn’t make it a leg… Abraham Lincoln Continue reading “Trading Lessons from Janice Dorn | Support and Resistance Levels”

Thanksgiving Short Trading Week | Support and Resistance Levels

Posted on by Ilan

Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Economic Reports for Wednesday, November 23, 2011

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Short trading week with Thanksgiving on Thursday.

Make sure you pay attention to trading hours for both Thursday and Friday this week.

Example below is for STOCK INDEX futures trading on globex. Make sure to visit the links below for complete trading holiday schedule for markets of your interest:

Wednesday Nov. 23rd – Regular close and regular re-open at 15:30 central time

Thursday Nov. 24th – markets will HALT trading at 10:15 Am central time and resume trading at 17:00 Central time

Friday Nov. 25th – Markets will close at 12:15 central time.

Please visit CME at:

http://www.cmegroup.com/tools-information/holiday-calendar/files/2011-thanksgiving.pdf

and the ICE exchange at

https://www.theice.com/marketdata/calendar/CalendarList.shtml Continue reading “Thanksgiving Short Trading Week | Support and Resistance Levels”

Measuring your Trading Progress | Support and Resistance Levels

Posted on by Ilan

Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Economic Reports for Friday, November 18, 2011

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1. Market Commentary

Some weekend reading material by a colleague of mine, Jim Wyckoff:

10 Key Questions on Measuring Your Trading Progress, Success
At some point in nearly everyone’s trading timelines, they wonder how their trading successes (or failures) compare with those of other traders. Wondering just how well you stack up to other traders in the industry is a natural curiosity and a human psychological tendency. However, actually knowing the success or failure rates of others doesn’t do a lot to move you farther down the road of where you want to be regarding trading success.
Most traders also wonder about the success rates of the “professional” traders-the ones who make their living solely by the profits they generate from trading. I will provide you with an answer to this question at the end of this feature.
Below are 10 questions regarding measuring your own trading progress and success. These questions should help you determine where you stand in this challenging field of endeavor.
1. What is trading “success?” This is a most basic question. Most would agree that ultimate trading success is defined as being profitable at trading-making more money than you lose. There are other secondary factors that also define success in trading, such as finding a “balance” between trading and other life activities. But it’s being profitable at trading that is the benchmark of defining success. Continue reading “Measuring your Trading Progress | Support and Resistance Levels”

Futures Trading Advice | Support and Resistance Levels

Posted on by Ilan

Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Daily Mini S&P Chart
5. Economic Reports for Friday, November 18, 2011

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1. Market Commentary

We tested the lower borders of this wide band I have talked about over the last few days.

1204.50 to the psychological 1200 level are the first line of defense.

Volatility is picking up another notch again and we saw a sharp sell off in matter of minutes intraday around 11 AM central.

Brings me to a point I have mentioned before many times….and while I hate sounding like a broken record, I hope that by repeating this I may help clients and traders:

ALWAYS EXPECT THE UNACCEPTED! When volatility skyrockets like now, moves become extreme, the speed of the market really picks up and this is when one must adjust their trading size lower to accommodate for the wilder and wider moves.
It is my opinion to have AUTOMATIC stops entered if you are a daytrader. All our trading platforms offer “auto brackets” that allow you to place limits and stops as soon as position entered. Please contact your broker if you need help with this feature. Continue reading “Futures Trading Advice | Support and Resistance Levels”

Fifteen Minute Mini SP and Ten Year Notes Charts | Looking at Markets for Day-Trading | Support and Resistance Levels

Posted on by Ilan

Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Economic Reports for Friday November 11, 2011

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1. Market Commentary

Another trading day brings me to a different topic.

Most of our clients trade stock index futures, like mini SP 500, Mini Russell, Mini Dow Jones futures as well as the DAX and eurostoxx over at Europe ( which appeal to some traders because of the different times these markets are active) etc.

Even within this market group, different markets will behave differently because of difference in the underlying product as well as volume and more. Example the mini Russell 2000 versus the mini SP500.

The mini Russell is a little more “erratic”, bigger, spikier, quicker moves. Mainly because it has less volume than the mini SP 50 but also because the cash index includes the 500 SP stocks plus additional 1500 stocks….

With the growth of electronic trading, volume in Grains, interest rates, currencies, metals, energies and other segments have grown enough that many of these markets are “suitable” for day-trading.

The following is a small list of markets you may want to follow, trade in demo and consider for your day-trading. Another point to keep in mind that some of these markets have lower exchange fees, hence your total transaction costs can be lower!

Indices as discussed above

Currencies ( Euro, Yen, British Pound, Canadian Dollar, Australian dollar)

Interest rates ( US bonds/ 30 years, Ten Years, Five years and even the ULTRA bond contract is picking up volume)

Energies ( mostly Crude oil and Natural gas)

Metals ( gold and silver)

Grains ( beans, corn and wheat)

So the main point I am trying to make today is that there are other markets you may want to look at for day-trading. Some markets fit some traders better because maybe they “respect the trend better”, maybe less volatile or simply because they just are a better match for the trader’s personality on the other side. Some markets are more suitable for “trend following” intraday techniques, while other maybe better for counter trend trading style.
Below you will see two different 15 minutes charts, one of the mini SP 500, the other of the Ten year notes. Continue reading “Fifteen Minute Mini SP and Ten Year Notes Charts | Looking at Markets for Day-Trading | Support and Resistance Levels”

Dealing with Losing Trades | Support and Resistance Levels

Posted on by Ilan

Jump to a section in this post:
1. Educational Feature: Dealing With Losing Trades
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Economic Reports for Thursday November 3, 2011

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Download Critical Trading Lessons | Support and Resistance Levels

Posted on by Ilan

 

In this post:

1. Market Commentary
2. Support and Resistance Levels

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1. Market Commentary

Download 14 Critical Lessons Every Trader Should Know

Dear Trader,

You know how difficult it can be to successfully trade the markets. The volatility we’ve seen lately does offer great opportunities, but it can also derail even the most experienced trader. That’s why our friends at Elliott Wave International are releasing one of their most popular trading eBooks — The Best of Trader’s Classroom — free through November 7.

Since 1999, EWI Senior Analyst and trading instructor Jeffrey Kennedy has produced dozens of exclusive Trader’s Classroom lessons for his subscribers. EWI reviewed over 100 lessons and selected the 14 which offer the most critical information that every trader should know.

Now you can download these valuable lessons in their 45-page Best of Trader’s Classroom eBook, free.

You’ll learn:
Why Emotional Discipline Is Key to Success
When to Place a Trade
How to Set Protective Stops
What It Takes to be a Consistently Successful Trader
And 10 more!

Download Your Free Best of Trader’s Classroom eBook Today.
(Don’t hesitate! This offer expires November 7.) Continue reading “Download Critical Trading Lessons | Support and Resistance Levels”

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.