Weekly Newsletter #1031: Knowing What You Don’t Know in Trading Markets, Copper Futures Daily Chart & Futures Levels 12.07.2020

December 4th, 2020 Filed under Weekly Newsletter | Comment (0)

Cannon Futures Weekly Letter Issue # 1031

Dear Traders,

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Trading 101: Knowing What You Don’t Know in Trading Markets

From our friend Jim Wyckoff at JimWyckoff.com

The headline of this educational feature may be a bit confusing, but I will explain what I mean shortly. First, I want to reiterate that trading futures, stock and FOREX markets is not an easy undertaking. It disgusts me that there are a few unsavory people in our industry that portray trading as an easy, get-rich-quick scheme, or as some endeavor for which there are “secrets” to be learned from those who hold “trading secrets.”

Folks, the plain truth is that there are no trading secrets and no easy paths to quick success in trading markets. Beware of anyone who tries to tell (or sell) you such. One of the biggest obstacles to success in trading markets is a lack of knowledge and understanding of the process of trading. The “process of trading” includes understanding financial leverage, market behavior and trader psychology. Understanding the process of trading can be achieved with perseverance and a willingness to continue to learn.

It’s not coincidental that trading markets is similar to most other human endeavors: Hard work and experience are required to achieve notable success. A person who enjoys classic automobiles would not attempt to tear down and successfully rebuild an engine without having some previous experience, or without having learned about the workings of an automobile engine—including knowing about the tools involved in the operation

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Dr. Copper

Copper and copper futures have a special place in the commodity futures universe. As one of the most important industrial and building materials in the world, copper’s market price is seen as an important fundamental economic indicator for not only the health of the U.S. economy, but also for the robustness of the world’s economy as a whole. In fact, because of copper’s generally accepted importance as an economic indicator in predicting and reflecting over-all economic health, it is ascribed to be the only commodity with a doctorate degree in the field of economics, hence the title, “Dr. Copper”. Cannon Trading’s brokers affectionately call out the words “Dr. Copper” when referring to copper’s present price and market movements, amongst themselves, in a cheerful genuflecting to the respect we believe this commodity and futures contract deserves. Copper’s recent market trading range /trend can be observed in the daily chart below.

Copper Futures Specs

Hours: 5:00 PM to 4:00 PM next day PM Central Time

Margins: $4620 initial, $4200Maint. ( as of the date of this newsletter)

Point Value: full Cent = $12.50( Example: $5.60 to $5.61/bu ). Min fluctuation is 2/8ths of a cent = $12.50 ( Example: 5.60 -5.602)

Settlement: Deliverable, FND is last business day preceding the contract month

Months: March (H), May (K), July (N), September (U,) December(Z)

Weekly Options: NO

To access a free trial to the ALGOS shown in the chart along with other tools, visit and sign up for a free trial for 21 days with real-time data.

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

12-07-2020

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

How Discount Brokers Work?

February 18th, 2014 Filed under Commodity Trading, Future Trading News, Future Trading Platform, Futures Broker, Futures Trading | Comments Off on How Discount Brokers Work?

Discount Futures Brokerage is formatted to provide a more cost effective way of trading futures for experienced traders who are comfortable placing trades over the internet , using their personal computer..

Discount Futures Brokers typically offer lower service fees and take a more minimal role in daily trading decisions. What you are essentially using a broker since then, is to place orders and for representation on the exchange floor. It is true that futures trading, or any trading market for that matter, could not operate without market participants and market professionals representing those participants. With commodities markets being so risky, regardless of cost it is clear that qualified brokers are vital to the success of participants of various markets.

What’s The Difference?

The biggest difference with discount brokers is the client’s ability to be more self-directed with their trading profile. The risk associated with futures trading disclaims that there is no guarantee of profit no matter who manages your money. No matter the level of involvement, brokers still represent the interests of every client and are likewise as valuable. The need for Futures Trading Brokers will never become obsolete, so the emphasis on discount brokerage need be on discounted commissions and fees, not discounted service.

Below is a list of lesser or excluded fees associated with a discount futures brokerage:

Account Maintenance Fees
Platform Fees
DataFeed Fees (Online/E-Trading)
Low Margin Investments
Broker Support Fees

Another difference with discount brokerage is the type of platform often used for this type of futures brokerage service; online. Online Futures Trading is in some cases synonymous with a discount futures brokerage. The reason this is, is due to lower costs associated with online platforms that allow you to do most of the monitoring of real time market data. A wide selection of online futures companies provide the software you can download to use to trade and build a profile. When one places orders online, he doesn’t need to call his broker and place orders via phone. That saves the time of the broker and allow for lower, discounted fees.

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