Day Trading Concepts


Weekly Newsletter #1042 Real Time Trading Updates, Fatal Flaws of Trading, Copper Futures Chart and Resistance Levels for the Week Ahead 3.08.2021

March 5th, 2021 Filed under Metal Futures, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1042

Dear Traders,

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Real Time Trading Updates

Gold Futures, Silver Futures

Real Time Trading Updates
Trading 101: Five Fatal Flaws of Trading
Why Do Traders Lose?
From our friend Senior Analyst Jeffrey Kennedy. Eliott Wave
If you’ve been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesn’t seem to matter how many books you buy, how many seminars you attend or how many hours you spend analyzing price charts, you just can’t seem to prevent that invisible hand from depleting your trading account funds.
Which brings us to the question: Why do traders lose? Or maybe we should ask, ‘How do you stop the Hand?’ Whether you are a seasoned professional or just thinking about opening your first trading account, the ability to stop the Hand is proportional to how well you understand and overcome the Five Fatal Flaws of trading. For each fatal flaw represents a finger on the invisible hand that wreaks havoc with your trading account.
Fatal Flaw No. 1 – Lack of Methodology
If you aim to be a consistently successful trader, then you must have a defined trading methodology, which is simply a clear and concise way of looking at markets. Guessing or going by gut instinct won’t work over the long run. If you don’t have a defined trading methodology, then you don’t have a way to know what constitutes a buy or sell signal. Moreover, you can’t even consistently correctly identify the trend.
How to overcome this fatal flaw? Answer: Write down your methodology. Define in writing what your analytical tools are and, more importantly, how you use them. It doesn’t matter whether you use the Wave Principle, Point and Figure charts, Stochastics, RSI or a combination of all of the above. What does matter is that you actually take the effort to define it (i.e., what constitutes a buy, a sell, your trailing stop and instructions on exiting a position). And the best hint I can give you regarding developing a defined trading methodology is this: If you can’t fit it on the back of a business card, it’s probably too complicated.
Fatal Flaw No. 2 — Lack of Discipline 
When you have clearly outlined and identified your trading methodology, then you must have the discipline to follow your system. A Lack of Discipline in this regard is the second fatal flaw. If the way you view a price chart or evaluate a potential trade setup is different from how you did it a month ago, then you have either not identified your methodology or you lack the discipline to follow the methodology you have identified. The formula for success is to consistently apply a proven methodology. So the best advice I can give you to overcome a lack of discipline is to define a trading methodology that works best for you and follow it religiously.
Copper daily chart for your review below. The volatility across many markets did not skip copper for sure. Larger Image Chart here.
More information about copper futures here
To have a FREE trial to the ALGOS shown in the chart, including the diamonds,click here.
Copper Futures Daily 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

3-08-2021

Support & Resistance Levels 3.08.2021

 

Weekly Levels

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

https://mrci.com

Date Reports/Expiration Notice Dates

MRCI Futures Report Updates

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


Futures Trading Levels, Day Trading Concepts

April 2nd, 2011 Filed under Day Trading, Futures Trading | Comment (0)

Cannon Trading / E-Futures.com

Wishing all of you great trading month in April.

Few trading tips for your reading below:

9 Key E-Mini Day Trading Concepts

by TradingEmini.com

Trading is inherently risky but by following nine 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 countertrend 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.

Disclaimer:

Trading commodity futures and options involves substantial risk of loss. The recommendations contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results. This is not a solicitation of any order to buy or sell, but a current futures 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! Read the rest of this entry »

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