Basics of Futures Trading


Weekly Newsletter #1045 Tight Stops? Wide Stops? Which One Should I Use? & 30 Year Treasury Bond Chart Review & Trading Levels for Week Ahead 3.29.2021

March 26th, 2021 Filed under Future Trading News, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1045

Dear Traders,

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Trading 102: Tight Stops? Wide Stops? Which One Should I Use?
Entry Signals Are Very Important But Just As Important If Not More Is Trade Management.
By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP
This article was published on FinanceMagnates.com back a couple years ago but is defintely a timeless article.
Today I decided to touch more on an educational feature rather than provide a certain market outlook. Many of my clients and blog readers know that when it comes to short term trading I am a fan of adjusting your trading technique/ game plan according to your assessment of the type of trading day that is developing in front of you.
Many new and advanced traders spend HOURS on looking for entry signals. Back testing historical data, creating algorithms to use and much more. I know. I am one of these traders.
Trade management consists of many factors. Some are psychological and some are more mathematical and many are in between. Some of the basic elements of trade management before even entering the trade are: What will my stop loss be**? will i use a stop loss**? What will my target be? will I use a target or just trail the trade if it goes my way?
Weekly chart of US 30 year bond futures for your review below. Click here for Larger image.
The bond market, more specifically, interest rate and yield projections, have been the big force behind the moves in many other futures markets. Bonds and the U.S. dollar have been key markets to watch, regardless of whether you are trading the E-mini S&P 500, gold, crude oil or soybeans. The way “big money” flows between asset classes, the allocation of assets, as well as the hedging interests in different markets are the main forces behind most of the markets we trade here.
30 Year Treasury Weekly Chart
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 when it comes to Futures Trading.

 

Futures Trading Levels

3-29-2021

 

Weekly Levels

Reports, First Notice (FN), Last trading (LT) Days for the Week:

https://mrci.com

Date Reports/Expiration Notice Dates

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 herein 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


Trading Insight: “Look Before You Leap” and Support & Resistance Levels 12.23.2020

December 22nd, 2020 Filed under Future Trading News | Comment (0)

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Dear Traders,

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This was shared with me by a colleague of mine few years back and I can fully relate and wanted to share it with you as well:
“Look Before You Leap”
On the way to becoming (trying to become…) a successful Futures trader you will incur many losses.
That I can attest to.
One way to guarantee you will never be a successful trader is by taking “out sized” losses.
There was a time, in my 22 year career, that I would get an idea, in my head, that I had to be in a market, jump in and then look at where a proper stop loss would have to be placed and panic because the loss would be too great if the stop loss was reached.
So being the rookie that I was, I would place what was known as a “money’ stop, which is one that is based on how much money I was willing to risk rather one that was based on support or resistance.
Because this type of stop level was arbitrary I kept getting stopped out and then watching as the market turn around and go the way I thought it would.
Then it dawned on me. Look before you leap! So before jumping into the fray, look at where the stop goes first and if it is too far away you can just pass on it or place your “resting” or limit order closer to where a stop can be placed based chart support or resistance, not on “how much you want to lose”
Of course you can still get stopped out but at least you might have a better chance of keeping your losses smaller.

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 when it comes to Futures Trading.

 

Futures Trading Levels

12-23-2020

Economic Reports, source: 

 www.BetterTrader.co

 

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 judgement in trading.


Futures Trading Advice for Beginners Infographics

April 28th, 2014 Filed under Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Future Trading Platform, Futures Broker, Futures Trading, Options Trading, Trading Guide | Comment (0)

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

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