Day Trading Money Management

Day Trading Money Management

Weekly Newsletter 1079: Learn to Lose, Learn to Step Away w/ Profits and Losses & Futures Support and Resistance Levels for the Week ahead

December 17th, 2021 Filed under Future Trading News, Futures Trading, futures trading education | Comment (0)

Cannon Futures Weekly Letter Issue # 1079

Dear Traders,

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Trading 201: Learn to Lose, Learn to Step Away with Profits and Losses

Important NOTE: With The Recent Volatility Across Markets, We Have Seen Margins Increase In Some Markets As Well As Wild Swings And Extreme Volatility In Many Markets.
For Some, It Can Cost The Full Account Value But Doesn’t Need To. These Volatile Times Require MAJOR Adjustments In How You Approach Trading And Risk Management. I Hope This Article Helps And I Encourage You To Utilize Our Brokers And The Knowledge They Have To Assist You.. Contact Us
Many different factors go into trading. Too many to discuss efficiently in one blog post. Some relate to trading techniques, other to money management, mental aspect, risk capital and much more.
But one that sticks in my eyes is the inability to accept a loss. I see many clients who can make money and have days where they make money but when they lose, they lose much more, sometimes even losing control and losing a big portion of their account.
I am not sure how a trader can embed this into their trading mind, BUT in my opinion if you train your brain to expect losses, understand losses and that losing days will happen, you will increase your chances of surviving in this business, which in return will actually give you a chance to succeed….
Losses are part of trading and as long as your losses are part of the plan and are quantified in advance and you can adhere to your rules, then you have a chance. I think it’s easy when traders are winning…making money etc. Much harder when you lose or down. your brain starts playing tricks on you…it tells you to double down, maybe reverse even though your analysis does not say so….all of a sudden you start pulling trades out of instinct, fear rather than a calculated plan that has solid risk/ reward.
If a trader learns how to lose, to accept losses, to have realistic expectations, then he/ she can avoid having one of those terrible days when traders can lose almost of all their account.
Also, while a bit easier in my mind, a day trader should also step away when he reached a predefined profit target for the trading day. In my humble opinion, the more you day trade, the more fatigued you become and larger chances for errors.
I went into this subject and detailed day trading money management in an article I wrote a few years back for SFO magazine.

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


Futures Support and Resistance Levels 12.18.2021


Weekly Levels

Weekly Support and Resistance Levels 12.20 - 12.24


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

Date Reports/Expiration Notice Dates

MRCI Reports

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

Day Trading Money Management + Levels & Reports for 8.7.2014

August 6th, 2014 Filed under Day Trading, Day Trading Webinar, futures trading education, Indices, Trading Guide | Comment (0)

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

A word or two about day-trading and money management…..




Trading futures and even more so, day-trading futures has grown significantly over the last few years, as seen by the increase in daily volume on some of the more popular electronic markets. (The Mini SP had 3,575,702 contracts traded on February 27th! Yes, that is 3.575 MILLION contracts….)

New traders as well as more experienced traders often wonder and search for the “holy grail” and the answer is different for each trader. Many factors influence what may be a good route for one trader versus a better alternative for another. Experience, risk tolerance, the person’s schedule, financial situation along with other factors will greatly influence what is a suitable trading method for one trader or another.

One COMMON solution different traders can implement when it comes to day-trading is what I call: “Treat your daily Profit/Loss as you would treat an open trade” and allow me to expand:

As brokers we have seen different traders survive in this business, making progress and even getting to the point of consistently finding their set ups, however their main downfall is that “one bad day” where they may give up recent gains, lose a large percentage of their account or even lose their whole account.

A practical solution for eliminating those disastrous days and giving you a better chance for survival is using “stop losses, trailing stop losses and daily stop limits” for every given trading day.

Let’s assume for hypothetical purposes that trader A is day-trading with $10,000 of risk capital. Part of her preparation for trading should be an understanding of her trading style, how active she is, how much on average does she risk per trade and other factors to help her calculate what her DAILY LOSS LIMIT should be. If you as a trader can be discipline enough to set your own daily loss limit and on days when you have reached your daily loss limit, simply stop trading for that day, you will give yourself better odds in surviving the day-trading arena and preventing days where you may loss a big portion of your account. Surviving to trade another day is a crucial element when it comes to day-trading.

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