Day Trading News & Information on Cannon Trading

Category Archives: Day Trading

Here is a subject that a lot of people don’t understand at all. Day Trading can be risky. So, it is something that you should stay away from unless and until you are absolutely sure about what you are doing.

There are a number of items about Day Trading such as the minimum mantaince requirementand more that need to be taken into consideration. With the blogs and write-ups listed in this section, you can learn a great deal about day trading.

We at Cannon Trading can help you understand the different concepts of trading and present you with the latest information on the same. Our team of professional and smart people can help you in your day trading transactions and more. In order to understand day trading more clearly, we advise that you go through all the write-ups listed in this category archive on Day Trading.

Notes from a Day Trader + Levels for April 23rd

April 22nd, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Trading, Trading Guide | Comment (0)

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The Week Ahead and Controlling your Emotions

by John Thorpe, Senior Broker

No Fed speakers this week, it is the blackout period in advance of next weeks FED meeting and rates decision.

Look for earnings to move the market this week MSFT, GOOG, META, XOM, Visa, TSLA

Last week, my colleague posted an article about FOMO just about the same time a client of mine was battling his own fear of missing out.

Of course I asked my client if , after redacting account information, he wouldn’t mind if I shared his “journal Entry” with everyone.

John,

I’ll give you an explanation of what happened yesterday. After we talked I left for my job. I returned at 2:30 and saw that I missed all the “short” activity yesterday.

Disappointed, I made the mistake of trying to catch up . I had several positive trades and then several negative trades that put me in the negative for the day.

I was active in a “short” trade, sitting at my desk. I nodded off. I don’t know how long, but it must have been enough seconds that the price action had dramatically turned “long”. Unfortunately, I nodded off with my hand on my mouse. It seems that I touched the mouse and now I discovered that I had clicked a second contract. I was hoping to recover the $1800 loss but it was too late.

1. I went back to practice simulation. First on the 15th from 9 AM and with 3 clicks I had made $2300. Then stopped while ahead.

2. Today I again started practice at 9 AM and within 2 hours made $530. Then stopped while ahead My mistakes. What do I learn from this:

1. Don’t fall asleep while trading.

2. Don’t fall asleep with your finger hovering over the mouse.

3. Stop when you’re ahead and don’t try to make money on the short price action movements.

4. Reminding again to only trade with the trend.

One of the most common pitfalls of traders in Futures Trading is the fear of missing out (FOMO).

Understanding FOMO in Trading:

FOMO, or the fear of missing out, is a powerful emotion that can cloud judgment and lead to impulsive decisions.
Recognizing the signs of FOMO is crucial for traders to maintain a disciplined approach to their strategies.

The Role of Emotions in Trading:

Emotions play a significant role in trading, influencing decisions and reactions to market movements.
Acknowledging emotions like greed, fear, and excitement is the first step towards effective emotional control.

Strategies for Controlling Emotions:

1/ Establishing a Trading Plan:

Having a well-defined trading plan helps set clear goals and guidelines, reducing the influence of emotions.

2/ Setting Realistic Expectations:

Realistic expectations prevent disappointment and impulsive actions based on unrealistic goals.

3/ Utilizing Risk Management:

Implementing risk management strategies ensures that trades are within acceptable risk limits.

4/ Taking Breaks:

Stepping away from the screen during intense market movements can provide a fresh perspective and prevent emotional reactions.

Mindfulness Techniques:

Incorporating mindfulness practices, such as deep breathing or meditation, can help traders stay focused and calm during stressful trading situations.

Learn from Past Trades:

Analyzing past trades, especially those influenced by emotions, provides valuable insights for improvement.
Keeping a trading journal helps identify patterns in emotional responses and areas for growth.

Daily Levels for April 23rd, 2024

Economic Reports

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* 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.

Weekly Newsletter: Role of Speculators, Coffee Outlook & Trading Levels for April 22nd

April 19th, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Trading, Index Futures, Indices, Nasdaq, Trading Guide, Weekly Newsletter | Comment (0)

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Cannon Futures Weekly Letter Issue # 1190

In this issue:

Important Notices – Israel, Iran, PCE Report & More
Futures 101 – The Role of Speculators in Futures Trading
Hot Market of the Week – July Coffee
Broker’s Trading System of the Week – NQ intraday System
Trading Levels for Next Week
Trading Reports for Next Week

Important Notices –

The situation in the Middle East will loom over the markets next week. More on that below.

Keep an eye on these potential futures market movers:

It was hardly unexpected, but Israel’s missile strike on Iran Friday may foreshadow a dangerous series of tit-for-tat retaliation between the Middle East powers – and unsettle world markets. At the same time, the limited scale of the attack and Iran’s muted response appears so far to signal a successful effort by diplomats who have been working to avert all-out war.

At the outset of Israel’s offensive last night, volatility amplified in key futures markets – stock indexes (S&P 500, Dow, Nasdaq), currencies, energies (crude oil), metals (gold), financials (30-yr. bonds, 10-yr. notes). Into late evening and on into today, there has been a virtual across-the-board drop-off in the inflated price fluctuation seen when news broke of the military action.

GDP and PMI along with homes sales, durable goods and overall a packed week with economic reports.

PCE Friday will provide additional clues as to the future of interest rates

big earnings week MSFT, GOOG, META, XOM, Visa, TSLA

Volatility in Cocoa and Coffee continues. Copper broke higher.

Trading Resource of the Week: Understanding the Role of Speculators

What Are Speculators?

Speculators are primary participants in the futures market. A speculator is any individual or firm that accepts risk in order to make a profit. Speculators can achieve these profits by buying low and selling high. But in the case of the futures market, they could just as easily sell first and later buy at a lower price.

Obviously, this profit objective is easier said than done. Nonetheless, speculators aiming to profit in the futures market come in a variety of types. Speculators can be individual traders, proprietary trading firms, portfolio managers, hedge funds or market makers.

Individual Traders

For individuals trading their own funds, electronic trading has helped to level the playing field by improving access to price and trade information. The speed and ease of trade execution, combined with the application of modern risk management, gives the individual trader access to markets and strategies that were once reserved for institutions.

Proprietary Trading Firms

Proprietary trading firms, also known as prop shops, profit as a direct result of their traders’ activity in the marketplace. These firms supply their traders with the education and capital required to execute a large number of trades per day. By using the capital resources of the prop shop, traders gain access to more capital than they would if they were trading on their own account. They also may have access to the same type of research and strategies developed by larger institutions.

Portfolio or Investment Managers

A portfolio or investment manager is responsible for investing or hedging the assets of a mutual fund, exchange-traded fund or closed-end fund. The portfolio manager implements the fund’s investment strategy and manages the day-to-day trading. Futures markets are often used to increase or decrease the overall market exposure of a portfolio without disrupting the delicate balance of investments that may have taken a significant effort to build.

Hedge Funds

A hedge fund is a managed portfolio of investments that uses advanced investment strategies to maximize returns, either in an absolute sense or relative to a specified market benchmark. The name hedge fund is mostly historical, as the first hedge funds tried to hedge against the risk of a bear market by shorting the market. Today, hedge funds use hundreds of different strategies in an effort to maximize returns. The diverse and highly liquid futures marketplace offer hedge funds the ability to execute large transactions and either increase or decrease the market exposure of their portfolio.

Market Makers

Market makers are trading firms that have contractually agreed to provide liquidity to the markets, continually providing both bids and offers, usually in exchange for a reduction in trading fees. Market makers are important to the trading ecosystem as they help facilitate the movement of large transactions without effecting a substantial change in price. Market makers often profit from capturing the spread, the small difference between the bid and offer prices over a large number of transactions, or by trading related futures markets that they view as being priced to provide opportunity.

Conclusion

All types of speculators bring liquidity to the market place. Providing liquidity is a crucial market function that enables individuals to easily enter or exit the market. Though speculative trading activity generates considerable liquidity, all market players benefit. In contrast to speculators who aim to profit by assuming market risk, some buyers and sellers have a vested interest in the underlying asset of each contact. These market participants aim to offset or eliminate risk and are referred to as hedgers.

Hot Market of the Week – July Coffee

Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.

FREE TRIAL AVAILABLE

July Coffee

July Coffee satisfied its third upside PriceCount objective in where it would be normal to get a near term reaction in the form of a consolidation or corrective trade, at least. At this point, IF the chart can sustain additional upside we are left with thelow percentage fourth count to aim for just above $300.

PriceCounts – Not about where we’ve been , but where we might be going next!

The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

Broker’s Trading System of the Week

With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.

Boston Nasdaq B

PRODUCT

NQ – Mini NASDAQ 100

SYSTEM TYPE

Intraday

COST

USD 55 / monthly

Recommended Cannon Trading Starting Capital

$25,000

Get Started

Learn More

The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.

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Daily Levels for April 22nd 2024

Trading Reports for Next Week

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

www.mrci.com

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FOMO May be Your Worst Enemy when it Comes to Trading + Levels for April 19th

April 18th, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Trading, Trading Guide | Comment (0)

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“Mastering the Market: Strategies to Overcome FOMO in Day Trading”.

By Ilan Levy-Mayer, VP

The unpredictable fluctuations in stock index futures can prompt a discussion on a significant challenge that day traders often encounter: the Fear of Missing Out (FOMO). This phenomenon is particularly prevalent in day trading, where the rapid pace, high leverage and high stakes can lead to hasty decisions.

Imagine a scenario where a trader is monitoring the charts and notices a significant downward trend. The immediate thought might be a concern that the market is on the verge of plummeting to new lows. While this could indeed happen, the trader also has a guideline: avoid initiating short positions when the market is below the lowest Volume Weighted Average Price (VWAP) band. This rule is based on the reasonable expectation that the market may rebound before continuing its descent. However, the swift movements of the market, coupled with emotional impulses and the desire to recoup losses, can result in a trader disregarding their own rules in the heat of the moment.

So, how can one manage this internal conflict? Here are some strategies:

• Document your trading rules. Writing them down can reinforce their importance and make it easier to adhere to them.

• Implement a system of self-discipline. If you find yourself breaking your own rules, consider setting consequences for such actions.

• Accountability is key. Enlist a trusted individual to review your trades with you and hold you responsible for your trading decisions.

• Practice mindfulness. Before making a trade, take a moment to breathe deeply and count to five. This brief pause can help you maintain composure and avoid impulsive actions.

• Embrace patience. Often, the decision not to trade can be as crucial as the trades you make. By reducing the number of impulsive trades and focusing on deliberate, well-thought-out actions, you are likely to see progress and improvement in your trading performance.

Remember, overcoming the urge to act on FOMO is a challenging but essential part of becoming a successful day trader. It’s about finding a balance between being proactive and not letting emotions dictate your trading strategy.

Daily Levels for April 19th, 2024

Economic Reports

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All times are Eastern Time ( New York)

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More Fed Members to Speak Tomorrow. Volatile Markets Across the Board! + Levels for April 18th

April 17th, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Exchange, Futures Trading | Comment (0)

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What to look for the rest of the trading week:

By Mark O’Brien, Senior Broker

General:  

It’s not far fetched to state that there is anxiety in the marketplace. Gold and silver prices have exploded – the former to all-time highs, the U.S. dollar has climbed the entire first quarter including a sharp ±200 point rise over the last two weeks and financial institutions worldwide are facing rising interest rate pressures. Here in the U.S. last week’s hotter-than-expected March CPI and PPI reports reflected a growing economy straining to “tap the brakes.”

Moreover, in the Middle East tensions have reached their highest levels in decades as the region braces for potential Israeli retaliation after Iran launched hundreds of missiles and drones at Israel over the weekend in response to an apparent Israeli strike on Iran’s embassy compound in Syria on April 1 that killed 12 people, including two Iranian generals.

Energies:

Noteworthy for its downside move, natural gas has been contending with substantial inventories and muted demand for months and the front month May futures contract has now lost nearly half its value since November – from ±$3.300 down to $1.675 per MMBtu, a ±$16,000 per contract move for the standard 10,000 MMBtu contract.

Softs: 

The latest commodity futures contract to make a break for higher prices is coffee. After trading within a ± 20-cent range between ±$1.80 and ±$2.00/pound all year, the last two weeks have seen a brake above $2.40/pound, roughly a $7,500 per contract move (each 1-cent move in coffee = $375), driven by fears of decreased output from Brazil and Vietnam, which are major producers in the coffee industry.

Metals:  

June gold is poised to set its latest all-time high closing price at the close of trading today, above $2,400 per ounce. On Friday, it traded to an intraday high of $2,447.6 per ounce only to plummet $97.00 per ounce to an intraday low of $2,350.60 per ounce – a $9,700 move for the 100-oz. contract – in a span of ±4 hours!

Daily Levels for April 18th, 2024

Economic Reports

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Coffee Outlook, Beige Book and Crude Oil Numbers + Levels for April 17th

April 16th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Trading, Grain Futures, Indices | Comment (0)

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Powell spoke and stock index futures traded in a volatile, zig zag type of trading most of the day unable to break one way or the other and closing near the unchange.

On the daily chart, both the SP and NASDAQ are noticing more pressure to the downside.

One of the keys for day Traders is to try and establish early on what type of day trading environment they are in.

Is this going to be a trend day it is this going to be a choppy low volatility trading day? is the day unfolding has a potential to be a volatile two-sided type of trading day?

Being aware of the top of trading day that is unfolding in front of you can help you decide which strategies to apply on that trading day.

Knowing what reports are coming out. the general direction of the long term charts can help you.

Different strategies will work better in different type of trading environments.

On a different note, softs, i.e. Cocoa, cotton, Coffee , Sugar, OJ are experiencing much higher volatility than historical norms. Cocoa just dropped close to 8% today after trading above the historical mark of $100 per metric ton.

below you will see a daily chart of Coffee futures and possible future direction.

Daily Levels for April 17th, 2024

Economic Reports

provided by: ForexFactory.com

All times are Eastern Time ( New York)

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

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Day Trading

Category Archives: Day Trading

Notes from a Day Trader + Levels for April 23rd