Future Broker


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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5 Mistakes of Commodity Trading & Futures Levels & Economic Reports 12.05.2013

December 4th, 2013 Filed under Commodity Trading, Future Trading News, Future Trading Platform, Futures Broker, Futures Trading | Comments Off on 5 Mistakes of Commodity Trading & Futures Levels & Economic Reports 12.05.2013

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 Thursday December 5, 2013

Hello Traders,

For 2013 I would like to wish all of you discipline and patience in your trading! 

5 Common Mistakes of Commodity Trading by Joe Easton Senior Commodity Broker with Cannon Trading

As a broker who serves different types of clients with different backgrounds, risk capital and risk appetite, I have observed the following 5 common mistakes traders make, in hopes you can learn and avoid!

  1. Trading with lagging indicators. As a Broker, I get to see the whole range, from traders making their first trade, to traders making their last trade, and everything in between. The beginner traders almost always start along the same path. Using MACD, Williams %R, Stochastic, RSI and most other indicators you can find to predict price is a very common mistake. These indicators often follow price movement, not predict future price movement. Sure when looking at a chart in hindsight, they match up great, but in real time they are lagging. This style of trading will more than likely lead to losses.
  2. Trading Undercapitalized. This mistake should be placed in the premarket (before opening an account) because an account shouldn’t even be opened without proper capitalization. Assuming you did open an account, trade within limits. Each Trader has different risk tolerance, but across the board, no one should be trading with funds they cannot afford to lose. When trading with limited funds or overleveraged 1 day can end your trading career before it began. Cannon offers aggressive day trading margins, as do our competitors, but by no means do we endorse taking advantage of all that leverage. In futures trading some markets are leveraged 100:1 or even more. Meaning you are controlling a lot more capital then you may think. For example: The ES is trading at 1695 right now. You are controlling 1695*50= $84,750.00 with a mere $500 or approximately 170:1 leverage. With all that leverage account balances can fluctuate rapidly. When Trader’s take losses psychology shifts, when a shift in psychology meets lack of funds or overleveraged trading decisions are affected. Trading on low balance or outside reasonable limits is a sure recipe for losses.
  3. Overtrading. This mistake is common among beginner and advanced traders. Until it is overcame, significant profits will be lost to commissions. More importantly, your trading profit potential will be limited. Whether trading 1 lot or 1000 lots per order there is still only so many moves a market can make in a given trading period. Intraday trading typically results in three moves or less. Sure there are days that bounce between the high and the low all day, but that is one move, sideways. Other days include trend days (one direction), or 3 move days, which I believe to be most common. A 3 move day is up then down (usually a retracement) then up, or down then up then down. A two move day would be up then down or down then up. If most days fall under these formats, what reason would a 1 lot trader have to make 100 trades? Not a good one, I’ll tell you that.
  4. Losing Days. About every Trader has losing days, it is part of the business. The key is to limit losses, similarly to trading. You should monitor your account balance like you monitor your trades. When you see it going the wrong way, you should become impatient and look to cut it short. There are infinite factors why you are having a losing day, the fact is you are and you need to know in advance where the bleeding stops. Many skilled and professional traders regularly take profits from the market day in and day out only to blow the account up the one day the market doesn’t react the way they expect. Often ego or anger can block rational thoughts and averaging in and reversing is all too easy. Having hard rules like maximum lot size and maximum daily loss can preserve your capital and prevent losing days from burying your account.
  5. Chasing the market. There are so many mistakes, it is hard to only choose five, but chasing the market will conclude this list. Markets do not move in straight lines. Aside from major news there are very few large moves without retracements. Depending on the market a “big” move can be calculated by taking the average daily range and multiplying by 2 or 3. Market conditions are constantly changing, but in all circumstances, when a market makes a big move, it is more likely to retrace or reverse before continuing. Traders that buy the ES after 15 points up or sell gold after a $50 move down are behind the ball and more times than not will be stopped out with a loss. Wait for the retracement or play the other side, this will help limit loses by chasing.

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Futures Trading Levels and Economic Reports for September 20, 2013

September 19th, 2013 Filed under Futures Broker | Comments Off on Futures Trading Levels and Economic Reports for September 20, 2013

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 Friday September 20, 2013

Hello Traders,

For 2013 I would like to wish all of you discipline and patience in your trading! 

Ilan will be back on Monday with his market insight.

If you like the information we share? We would appreciate your positive reviews on our new yelp!!

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.

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