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Important Factors When Choosing a Futures Broker

August 20th, 2013 Filed under Futures Broker, Futures Trading | Comment (0)

Choosing a Futures Broker can be somewhat of a daunting task. Most popular factors I see considered: cost, customer service, experience and knowledge. Going through the process of one’s own due diligence of researching your broker’s firm, trying a futures platform and comparing costs is a process one must take to find a broker that fits him or her.

Being a broker myself, I hear many concerns about cost before I even here about the type of future trading platform one would like to be set up with that fit his or her trading style. Please note cost should not be all when choosing a futures broker. Most reasonable and competitive commission quotes, for example the mini S&P cost less than half a tick. Unless you are trading high volume, less than half a tick should not hurt your account balance per round turn. When you look for “deep discount” commodity brokers, these brokers may provide you with an appealing commission cost but they may lack quality service and or even knowledge of the futures/commodities markets. This happens countless times in the industry; where clients will sacrifice service and knowledge of a broker for fifty cents less in commission because a lower commission cost seems to be more important for a client. Please be aware commission costs are only one ingredient of choosing a broker when trading futures.

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Futures Trading Levels

A more important component, I believe to be than cost when choosing a futures broker is customer service. Always note how long it takes your broker to respond for example to an email you send him or her. Does your broker respond in a timely manner? If your request was urgent did he/she give you the attention that’s required to solve the issue? These are very important factors one must consider when choosing a broker. If you, the client, end up with a commodities broker who is non responsive and not willing to help when the time is needed, there will be no value in you having a broker.

Look for the added values your broker can provide to help increase your success in futures trading, such as experience and knowledge. In my opinion, a great futures broker wants their clients to be successful in futures trading. Never be afraid to use your broker to pick his or her brain about the futures markets you are trading; go over strategies that you are using but may not be working for you. You choose your broker for a reason and your broker’s job is to service your futures account; be able to help you with your trading platform and every so often give his or her opinion of the markets you are trading if it’s asked by the client. In many “deep discount” firms, brokers seem to lack this type of service. I have seen many times where the client is left to figure out the platform themselves and are trading blindly because they lack direction from a licensed broker.

Although I agree that cost is a large component when choosing a broker, always consider the other factors such as customer service, knowledge and experience. Because if a broker lacks those three qualities but can provide you only cost, you may see your account having a shorter life span in the futures markets.

SPECIAL NOTE: 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.


Futures Trading Levels, Types of Trading Days

March 30th, 2011 Filed under Commodity Trading, Future Trading News, Futures Trading | Comment (0)

Cannon Trading / E-Futures.com

The following is taken from a guide I have written that helps subscribers to my daily chart service. You can have a 2 week free trial to the daily live charts service along with buy/sell triggers and get the full guide along with chart examples, rules and much more by signing up at:

Cannon Trading Inc. Day Trading Webinar

General Notes:
At any given day, one must understand the trading environment that specific day has to offer and adjust their trading style accordingly. In our case it relates more to the size of stops and target based on volatility. Some days the market gives us many opportunities; some not as much; and some days it provides us with mostly risks…….take what the market gives you and not what you want it to give…..

I think if a trader understands early enough what type of trading day it is, he or she can choose which tools from the webinar are most suited for that days trading. If one can do that successfully (which is not easy), I think that is half the battle.

Not taking a trade is better than a bad trade.

My opinion is that there are 3 main types of trading days.

  1. Most common is two sided trading action with swings up and down – this type of trading day is most suitable for the main aspect of this model, which is taking trades based on the arrows.
  2. Strong trending day, mostly one directional – this type of trading day is the least common, many times this will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using the color scheme I have on the charts. Green bars mean strong up trend, red bars mean strong down trend. If you determined that this is a trend day, then use pull backs to enter with the direction of trend and use the parabolic (little dashes) as you trailing stop.
  3. Slow and/ or choppy trading day – this type of trading day is best suited for taking small profits from the market by either using the main model or taking the diamonds as entry signal, and going for quick profits and tight stops.

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Futures Trading Levels and Economic Reports for February 18, 2011

February 18th, 2011 Filed under Future Trading News, Futures Broker, Futures Exchange, Futures Trading, futures trading education | Comments Off on Futures Trading Levels and Economic Reports for February 18, 2011

Daily chart of crude oil for your review below:

S&P500 daily trading levels February 18

Life After Mini SP – Day Trading Crude Oil Futures “Buying the Fear, Selling the Greed”

Join us for a Webinar on February 23

Space is limited.
Reserve Your Webinar Seat Now at:
https://www2.gotomeeting.com/register/477215826 Read the rest of this entry »


Futures Trading Charts, February 16, 2011

February 17th, 2011 Filed under Future Trading News, Futures Trading, futures trading education | Comment (0)

Low volume on the Mini SP 500 today.

That should change tomorrow with a variety of economic reports due.

Daily chart of Mini Russell 2000 for your review below:

S&P500 daily trading levels Tuesday February 16 Read the rest of this entry »


Futures Trading Levels and Economic Reports for February 11, 2011

February 11th, 2011 Filed under Futures Broker, Futures Exchange, Futures Trading | Comments Off on Futures Trading Levels and Economic Reports for February 11, 2011

I like the way tomorow’s date looks like …2-11-11 so decided to share a MONTHLY chart of the SP 500 index, more for “fun”, “change” than anything specific…

SP-500-Day-Trading-2011-02-11.png Read the rest of this entry »

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