Mental Stops? – Trading Futures 8.25.2016
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
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 August 25, 2016
Every so often I hear clients tell me, ” they don’t use hard stops…they use mental stops”
While the mental stop idea can work 8 out of 10 times, the 1-2 times it does not work will wipe out your account.
Try using mental stops when you were trading crude yesterday and all of a sudden news about Iran looking to comply with production hit the market and market went up over 80 cents in few minutes…
or maybe you had a mental stop on long gold early this morning when all of a sudden in a few minutes gold dropped $14 per contract.
I have seen it happen before with the SP and other stock indices, I have seen it happen in all markets I watch and trade at one time. it’s not a question if, but rather when. Big moves happened and will happen. Not every day, not in every market at the same time but they will happen in all markets at one given time or another.
So unless you have unlimited amounts of risk capital and/ or crystal ball- use hard stops in the system OR learn how to hedge your positions using options and weekly options.
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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Levels for Trade Date of 8.25.2016
|Contract Sept. 2016||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||Dec. Gold||Sept. Silver||Sept. Crude Oil||Sept. Bonds||Sept. Euro|
|Resistance 3||1356.3||19.29||48.81||173 21/32||1.1380|
|Resistance 2||1350.2||19.13||48.27||173 7/32||1.1351|
|Resistance 1||1339.2||18.83||47.52||172 23/32||1.1314|
|Support 1||1322.1||18.36||46.23||171 25/32||1.1248|
|Support 2||1316.0||18.20||45.69||171 11/32||1.1219|
|Support 3||1305.0||17.90||44.94||170 27/32||1.1182|
|Contract||Dec. Corn||Dec. Wheat||Nov. Beans||Dec. SoyMeal||Sept. Nat Gas|
German Ifo Business Climate
CBI Realized Sales
Core Durable Goods Orders m/m
Durable Goods Orders m/m
Flash Services PMI
Natural Gas Storage
Jackson Hole Symposium