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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.

3 Points to Futures Trading Psychology & Economic Reports 7.25.2014

Posted on by Ilan

Hello Traders,

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

Many different ways to make and lose money trading futures, even more so when day trading.

Today’s action in stock index futures led me to write about:

Three main approaches out there in my opinion.

  1. The first is what I call the “trend is your friend”. A trader looks at few different time frames, looking to see if there is an established trend on longer time frame (example 60 minutes chart) and then trying to look for pull back on lower time frames and “join the trend”. Only works for certain markets and only works few times of the month as most days markets do not have an intraday trend.
  2. Second method is what we call break out. Traders will look for markets that have been in a lower volatility situation using indicators such as ADX for example. Then they will look at the chart to find what they feel are levels that if broken can fuel a stronger move in the same direction. These levels can be extracted visually looking at the chart or using highs/ lows of X periods. This method works better on some markets than others. I noticed that crude oil and gold futures tend to have better chances of a continued breakout move than the mini SP 500 for example.
  3. The third one many traders use and believe in is “mean reversion”. Stock index futures in my opinion will fall into this category many trading days and today’s session ( July 24th 2014) was a good example. Market tested yesterday’s highs, then tested lows and traded in between. Traders will sometimes use RSI or Williams %R to get a feel for when the market gets away from the mean and will use counter trend methods in this case. Use of stops when counter trend trading is even more important as you do NOT want to get caught on the few days a month when these markets do incur a break out situation…..

Continue reading “3 Points to Futures Trading Psychology & Economic Reports 7.25.2014”

Futures Trading Advice for Beginners Infographics

Posted on by Ilan

Do you often find yourself overwhelmed by the game of numbers that dictates the nerves of the markets? Are you often perplexed by the amusing gains and losses that investors count their wealth by? Here is an interesting way to understand commodities and trading, for all those who are inquisitive about the art of investment. In case you think commodities can be your ticket to extra earnings, the infographic presents some hard facts that you ought to rote before you fall in the temptation of trading. That said, once you have the basics by your side and the facts by your fingers, trading in commodities can be another asset class to consider.

The infographic that Cannon presents, is a graphic insight into how investing in commodities through futures should be done. It also establishes certain general tips one can follow when trading futures. The infographic uses basic examples from day to day life to explain difficult concepts of trading, a matter that generally requires expert intervention or hours of discussion so as to understand thoroughly. The basic features of futures trading have also be highlighted in the simplest possible manner, through this infographic made by Cannon Trading.

 

Futures Trading Infographics
This Infographic created by:: Cannon Trading

Continue reading “Futures Trading Advice for Beginners Infographics”

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.

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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 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”

How Do I Get Started Trading Futures?

Posted on by Ilan

So you’ve come this far. You’ve evaluated different vehicles of investment, and you have decided to expand your portfolio to include commodity futures. Now what? You are going to need a few tools at your disposal: a knowledgeable commodity broker that is quick on their feet, a reliable, efficient platform that will get you the information you require and executes your trades on a timely basis, and perhaps most importantly a plan.

Let’s begin with the most important requirement: because futures are so highly, there’s no doubt it can be a very risky asset class and you should only be trading with “risk capital”, or money that you can stand to lose and won’t affect your lifestyle if you do. Once you’ve accumulated your risk capital and you’ve come to terms with the nature of trading futures, you can take matters a step further by doing research on what kind of trader you want to be.

Continue reading “How Do I Get Started Trading Futures?”

Entering into Futures Trading

Posted on by Ilan

Futures trading can be a rewarding investment for those with an in-depth understanding of a particular commodity. In essence, you will be buying or selling a commodity based on its future selling price. For example, if you can buy a futures contract at a low rate and sell it for a higher price, it’s possible to gain a significant profit in the transaction. But before wading into this highly speculative market, there are some things you will need to do and know about trading futures markets.

First, you will need to enter an agreement and create an account with a commodities broker. These brokers are licensed professionals who are allowed to trade in commodities on the trading floor of an exchange. Accordingly, they manage and mediate futures trading between buyers and sellers as well as keep track of the prices of futures contracts. Because of their knowledge of the market, they can help you make sound investments and recommend an investment strategy that suits your profile.

Continue reading “Entering into Futures Trading”

Bearish Note for the Week End | 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 Monday May 14, 2012

 

Hello Traders,

I thought we finished the week on a somewhat bearish note….

The market tried to penetrate higher the last 3 sessions and failed each time.

Also I got a sell signal on the weekly chart which I am attaching below for your review.

I think what type of price action we will see ( if ) when we trade at 1336- 1339 area, may give us further clues about this market.

568

 

On a different note, below you will see a screen shot from today’s live trading signals I share with clients and prospects. This one is of the Mini SP 500 from May 11th 2012. We had one long signal during the early AM session before I start the service and one short signal midday, which turned out to be a good one. Of course, not all signals are as good…but if you like to come and try the service on free trial basis, please visit:

https://www.cannontrading.com/education-day-trading-webinar

1336766377919

 

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 two weeks free trial where I enable the ALGO along with few studies for your own sierra/ ATcharts.

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 “Bearish Note for the Week End | Support and Resistance Levels”

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”

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.