Different Methods to enter in Futures Trades, Reports & Levels 8.20.2014
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
For 2014 I would like to wish all of you discipline and patience in your trading!
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…
Another way is for a trader to decide that yes she wants to enter the specific market but she would like to get in at a price that is better and will use a limit order. Example may be, trader got the signal she was looking for to sell the mini SP 500 futures. The September contract was at 1982.75. Trader decided that she is willing to take the risk of not getting into the trade but she will only sell if the market hits her limit price of 1983.75 for example. There are times that this patience will allow for a better entry price, hence better chances to meet target but there are times that trader will not get in and “miss a possible winning trade”
One more common way that some traders use is to enter on a stop. Most beginner traders will use stops for protection and not as much for trade entry. Traders with a bit more experience will at times use stops to enter a trade. Example may be that Joe decided to buy crude oil futures because he got his condition met ( crude in this hypothetical example is trading at 93.42), however Joe would like to see that price action follows the signal and break a minor level on the chart which he thinks serves as minor resistance at 93.49. In this case Joe will place a buy stop at 93.49 that if triggered will enter him into a long trade.
Again, there are so many more ins and outs to trading in general and to trade entry in specific and I hope this quick overview may opened your mind to different ways of entering a trade.
GOOD TRADING !
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not indicative to future results.
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Futures Trading Levels
|Contract Sept. 2014||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||December Gold||Sept.Silver||Oct. Crude Oil||September Bonds||Sept. Euro|
|Resistance 3||1308.4||19.7||94.61||140 25/32||1.3377|
|Resistance 2||1303.9||19.7||94.09||140 13/32||1.3352|
|Resistance 1||1297.8||19.6||93.76||140 2/32||1.3308|
|Support 1||1287.2||19.4||92.91||139 11/32||1.3239|
|Support 2||1282.7||19.3||92.39||138 31/32||1.3214|
|Support 3||1276.6||19.2||92.06||138 20/32||1.3170|
|Contract||Dec Corn||Dec. Wheat||Nov. Beans||Dec. SoyMeal||Dec. bean Oil|
|ThuAug 21||2:00am||CHF||Trade Balance||1.87B||1.38B|
|3:00am||EUR||French Flash Manufacturing PMI||47.9||47.8|
|EUR||French Flash Services PMI||50.3||50.4|
|3:30am||EUR||German Flash Manufacturing PMI||51.7||52.4|
|EUR||German Flash Services PMI||55.5||56.7|
|4:00am||EUR||Flash Manufacturing PMI||51.4||51.8|
|EUR||Flash Services PMI||53.6||54.2|
|4:30am||GBP||Retail Sales m/m||0.4%||0.1%|
|GBP||Public Sector Net Borrowing||-1.9B||9.5B|
|Tentative||GBP||10-y Bond Auction||2.70|1.8|
|9:45am||USD||Flash Manufacturing PMI||55.7||55.8|
|USD||Philly Fed Manufacturing Index||19.7||23.9|
|USD||Existing Home Sales||5.01M||5.04M|
|USD||CB Leading Index m/m||0.6%||0.3%|
|10:30am||USD||Natural Gas Storage||83B||78B|
|Day 1||ALL||Jackson Hole Symposium|
This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading