Commodity Futures Trading Tips


2021 Key Takeaways, Christmas Holiday Trading Schedule & Support and Resistance Levels 12.23.2021

December 22nd, 2021 Filed under Future Trading News | Comment (0)

Get Real Time updates and more on our private FB group!

Thursday, December 23, 2021 – Normal Market Close Time.  However, since the markets will remain closed until Sunday – we will require *Any open positions must meet Exchange Maintenance Margin 15 minutes before the market close (3:45 pm CST).

2021 Key Takeaways with Craig Bewick of the CMEGroup.com

What a year it’s been… again. Even though there are still 7 more trading days left in 2021, and much could change in the next 7 trading days, we decided to take an assessment of where we’ve come since 12/31/2020.
  • S&P 500 and Nasaq-100 futures prices were up by over 20%; E-mini S&P 500 options implied volatility is trading at just about the same level as it was a year ago
  • Even though it’s trading well off its highs of the year, WTI Crude Oil futures prices are up by nearly 50%
  • Gold futures prices were a bit “range bound” this year. However, if we look at implied volatility as one measure of potential price movement, the average closing 30-day implied volatility in 2021 was nearly equal to the average closing level since December of 2011. Also, if we look at it by year, the average closing level in 2021 was 14.2%; higher than 2017 (10.7%), 2018 (9.8%) and 2019 (10.8%).
  • US Treasury yields increased. The 10-Year yield is up from under 1% to nearly 1.5%. We used data from the St. Louis Fed to get the 12/31/21 value and compared it to the current 10-Year Micro Yield futures price so it’s not perfect, but does provide an indication of the yield increase. Of course, as Jim Iuorio pointed out in a recent Yield Insights video that was published here, the last time inflation readings were at the current levels, the 10-Year yield was near 12%.
  • Soybean futures prices, after a year of historic volatility, wound up almost unchanged on the year. We downloaded data from QuikStrike to verify this and included the graph below in which the orange line depicts the price level at the beginning and end of the year.
  • Natural Gas futures prices have also been characterized by historic volatility and, even though they are trading well below this year’s high levels, are still 50% higher than a year ago
  • In a year that saw CME launch several new cryptocurrency products, Bitcoin has increased in price by about 66% and implied volatility, while still among the highest compared to other CME options products, has come down from over 100% to about 78%
So, in a year that was not short of potentially market moving headlines and seemingly as more questions than answers remain, we hope all of our In FOCUS readers have enjoyed our daily commentary.
We wish everyone a very happy and healthy holiday season and good trading year in 2022.
Craig Bewick has spent 25 years in futures and options markets, starting at CBOT and CME working in risk management, regulatory, technology, product management and client development.

 

 

 

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

12-23-2021


Economic Reports, Source: 

https://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.


10 Key Questions on Measuring Your Trading Progress, Success & Support and Resistance Levels 10.21.2021

October 20th, 2021 Filed under futures trading education | Comment (0)

Dear Traders,

Get Real Time updates and more on our private FB group!
🙂

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. Futures Commodities Brokers can help you succeed.
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.
2. What is trading “progress?” Beginning traders should not expect to have immediate and ultimate success trading futures, stocks or FOREX markets. What they can expect in the early going is to make steady progress through gaining knowledge and experience. Even veteran successful traders continue to make trading progress. Achieving and maintaining trading success requires continual progress—namely continuing to seek out trading and market knowledge. Traders who truly enjoy the “progress” and process of trading do have a significant trading edge over those who do not enjoy learning and gaining experience.
3. At what point in my trading timeline should I expect trading “success?” Trading success (winning trades) can come right away—even for the beginning traders. What is less likely for the inexperienced traders is sustained trading success. Beginners can even run into a “hot streak” that skews the overall reality of trading. Immediate (and likely fleeting) success for a beginning futures trader can do longer-term psychological harm—if he or she does not fully recognize and understand the hard work and perseverance required on the road to trading success. Many times I get questions from less-experienced traders that go something like this: “I’ve been trading two years and I’ve only been able to about break even.” My reply to them is, “Hey, you should not be too discouraged with those results. Many traders don’t have that kind of success in the early going.”
4. How long will it take to go from being a less-experienced trader to an experienced and hopefully successful trader? Determining a precise timeline at which trading success will arrive will vary greatly among traders. Some beginning traders will spend nearly full time coming up to speed. Others may spend an hour or two a week on the subject. There is no right answer on how much time to spend studying trading and markets. I have many readers who are taking up trading in retirement. I have a few that have taken up trading over the age of 80 years. One is never too young or too old to learn about markets and trading. A general rule would be for a beginning trader not to expect sustained trading success within a few months. More likely is a timeframe of a few years to achieve sustained trading success. Now you see why money management is so important in futures trading. You have to survive before you can succeed!
5. When should I “throw in the towel” and admit that trading is not for me? There is no one right answer to this question. If trading is making you miserable and creating other bad habits (kicking the dog), then it’s time to quit—or at least take an extended break. If you do not have the financial resources to trade futures, then you should not participate. Futures trading should be conducted only with money a trader can stand to lose, without impacting other more important obligations, such as grocery and rent money. It is important to point out that the beginning futures traders who “flame out” first are usually the ones who did not have the financial resources to trade futures in the first place.
6. Am I still hungry for trading and market knowledge? One should never stop endeavoring to gain more knowledge about markets and trading. Even the successful veterans who’ve been in the business for many, many years will say that they are still learning on a daily basis. If you are still striving to learn more about this business–and are enjoying doing it–then that’s a positive signal.
7. How many trading losers should I absorb before I change my trading plan of action? This is a real tough one to answer. Again, there is no single right answer. However, if you believe you have a well-founded and thoroughly researched trading plan of action, don’t abandon it just because you are on a losing streak. All traders have winning and losing streaks. That’s a part of trading. Traders enjoy the winning streaks and do not enjoy the losing streaks. But during the losing streaks they forge ahead, knowing that their plan of action is still solid. Trading plans can certainly be tweaked, such as trading fewer contracts or trading less frequently during a losing streak. For most traders, a complete overhaul of one’s trading plan is probably a last resort that merits much consideration. Futures Commodities Brokers has seen it happen before.
8. How can I keep myself motivated on the winding road to trading success? Traders who enjoy the entire process of trading don’t really need a lot of motivational help because they are already fascinated by what they are reading and learning. But during a losing streak or some other “dry spell” in trading—when morale can slip—it is prudent to read some trading books that are based less on specific methodologies and more on trading psychology. Attending trading seminars is a great way for a trader to become reinvigorated. (And it’s also a great value to those already invigorated!) You not only will gain fresh trading and market knowledge, but you also will get to see and speak with the seminar lecturers as well as traders who are in the same position as you.
9. How much should I listen to other traders when trying to evaluate my own trading progress or my own trading plan? It is good to have a trading partner or “buddies” with whom to share your ideas and to discuss markets and trading. The learning curve improves when a trader has another trader or traders with similar experience with whom to share ideas. It is also beneficial to have an experienced mentor to help guide you through the “rough waters” that all traders experience at times. But at some point, most traders do want to be more or less autonomous in their decision-making. As many traders gain more experience, knowledge and confidence, they will use outside influences as “second opinions” to reinforce or provide another angle to their own sound opinions. Many traders also have full-time “day jobs” and need outside sources to help save them time and to keep track of what’s going on in all the markets.
10. What is the average success rate of the “professional” trader? I have not seen any “official” studies of the percentage of winning trades of the average professional trader. However, it is generally agreed upon by many in our industry that the better professional traders have a winning percentage of around 4 out of every10 trades—or a 40% winning percentage. Breaking this down even further, it is estimated that half of the winning trades are only small winners and not much better than break-even. Thus, it can be loosely extrapolated that most of the professional futures traders make most of their money on one or two trades out of every 10. This only underscores the importance of sound money management in futures trading—namely cutting losses short and letting winners run. Understanding the future of the trading industry is easy when you learn with Futures Commodities Brokers.
That’s it for now. Next time, we’ll examine another important issue on your road to trading success.
Jim Wyckoff is the proprietor of the analytical, educational and trading advisory service, “Jim Wyckoff on the Markets.” He has a website at www.jimwyckoff.com

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

10-20-2020

 


Economic Reports, source: 

https://bettertrader.co/ 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc aka Futures Commodities Brokers. 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. Get educated with Futures Commodities Brokers.


Top 50 Futures Trading Rules 5.13.2015

May 12th, 2015 Filed under Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Trading, futures trading education, Trading Guide | Comment (0)

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

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 Wednesday May 13, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Hello Traders,

Top 50 Trading Rules:

Most Common Pitfalls To Avoid When Trading Futures-Commodity Futures

Separator

500 experienced futures brokers were asked what caused most futures traders to lose money when comes to trading futures.

Their answers reflected the trading experience of more than 10,000 futures traders. Download the PDF and find out what they said.

1.) Have a Plan

Many futures traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they “second guess” it and don’t stick to it, particularly if the trade is a loss. Consequently, they overtrade and use their equity to the limit (are undercapitalized), which puts them in a squeeze and forces them to liquidate positions. Usually, they liquidate the good trades and keep the bad ones.

Separator

2.) News Factor

Many traders don’t realize the news they hear and read has, in many cases, already been discounted by the market.

Separator

3.) Trade Objectively

After several profitable trades, many speculators become wild and nonconservative. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that “can’t fail.”

Separator

4.) Know Your Size

Traders often try to carry too big a position with too little capital and trade too frequently for the size of the account.

Read the rest of this entry »


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

Read the rest of this entry »

________
Doing Business With
See more...
Loading
Loading

Loading