Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
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 March 25, 2014
For 2014 I would like to wish all of you discipline and patience in your trading!
Day-Trading Emini Index Futures – 9 Key Trading Concepts by TradingEmini.com
Tradingemini.com’s 9 Rules to help keep you in the 10% winning club Vs 90% of traders who lose money.
Trading is inherently risky but by following eight fundamental money management rules you can keep your capital safer while building your trading experience.
1. Look for high volume markets with a thin spread, so orders are filled quickly and it has high volatility, so there are opportunities for 2 to 4 good trades during the day. The Emini S&P500 Index Future is a good example of this type of market (Each point is worth $50, split into 4 ticks of $12.50 and there are 4 contracts a year, traded on the Chicago Mercantile Exchange).
2. Only risk 1% of your capital per trade, then your capital can absorb 100 consecutive bad trades. Even the best systems can expect 20% loosing trades, so the 1% rule gives you room to maneuver.
3. $10-$15k is the minimum recommended risk capital you should have per Emini S&P500 contract traded – then if you lose $1000-$1500 it only represents 10% of you capital, which is recoverable compared to a $3k account where the same loss equals 50% of your account, consequently you are more likely to lose the remainder of your capital rather than recover the loss.
4. Limit the hours you trade – we prefer the first 60-90 minutes, when typically there is a good trend before the lunch time chop – many professional traders trade this time period.
5. Limit the number of trades you make per day – 2-6 is good as the Emini usually has up to 3 trends per day and you should aim to catch 1-2 out of the 3. Overtrading racks up commission fees and increases the risk of revenge trading. A few ticks loss per trade quickly mounts up – 4 trades fired like a machine gun can easily become four losers, at 8 tick stops, that’s $400 loss, 4% of a $10k account. Patience is key, stalk trades.
6. On any one day stop trading when losses hit 5-10% of capital, which is recoverable, and indicates you are reading the market wrong, so stop, evaluate your errors and record them in your Trading Journal.
7. Keep a Trading Journal, listing all your trades, because over time the mind dismisses bad trades and habits. Include annotated charts, and notes about your emotions. Key things to note:
– are you trading your account not the charts, taking desperate trades having made a couple of losers, rather than treating each trade uniquely.
– are you taking negligible signals because you have missed a good move, resulting in chasing a trade, which you are stopped out of on a minor retrace, or you opt for a counter trend trade, purely on the thought “it can’t possibly go any higher”.
8. Base your stop loss and target strategically from the charts, not an arbitrary number of points. For example use price levels at double tops, swing highs and lows, or pull backs to moving averages. Then you can place tighter stops and take higher profit to risk ratio trades, keeping your focus on the chart, trading what you see not what you want to see, think or feel.
9. Be patient between one EMA, or pivot, to the next. This is one of the hardest things to master. To help, trade at least 2 contracts, keeping 1 for 2-3pts, whatever your first target is, and then let a runner go with a breakeven stop. If it goes your way you add gravy to the first. One good runner is hard to beat with lots of scalps.
IMPORTANT PLEASE NOTE: TRADING COMMODITY FUTURES AND OPTIONS INVOLVE SUBSTANTIAL RISK OF LOSS. THE RECOMMENDATIONS CONTAINED IN THE LETTER IS OF OPINION AND DOES NOT GUARANTEE ANY PROFITS. THERE IS NOT AN ACTUAL ACCOUNT TRADING THESE RECOMMENDATIONS. THESE ARE RISKY MARKETS AND ONLY RISK CAPITAL SHOULD BE USED. PAST PERFORMANCES ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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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.
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|Contract June 2014||SP500 (big & Mini)||Nasdaq100 (big & Mini)||Dow Jones (big & Mini)||Mini Russell||Dollar Index|
|Contract||Apr. Gold||May Silver||May Crude Oil||June Bonds||Mar. Euro|
|Resistance 3||1354.9||2061.5||101.34||134 19/32||1.4006|
|Resistance 2||1345.3||2046.5||100.82||133 31/32||1.3941|
|Resistance 1||1327.7||2022.0||100.10||133 19/32||1.3889|
|Support 1||1300.5||1982.5||98.86||132 19/32||1.3772|
|Support 2||1290.9||1967.5||98.34||131 31/32||1.3707|
|Support 3||1273.3||1943.0||97.62||131 19/32||1.3655|
|Contract||May Corn||May Wheat||May Beans||May SoyMeal||May bean Oil|
|TueMar 25||5:00am||EUR||German Ifo Business Climate||110.9||111.3|
|9:00am||USD||S&P/CS Composite-20 HPI y/y||13.3%||13.4%|
|10:00am||USD||CB Consumer Confidence||78.7||78.1|
|USD||New Home Sales||447K||468K|
|USD||Richmond Manufacturing Index||-1||-6|
|7:00pm||USD||FOMC Member Plosser Speaks|
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