Day 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.


Rollover Notice for Stock Index Futures & Futures Levels 6.13.2019

June 12th, 2019 Filed under Commodity Brokers, Commodity Trading, Day Trading, Futures Broker, Futures Trading, futures trading education, Indices | Comment (0)

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Dear Traders,

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Rollover Notice for Stock Index Futures
Important notice: For those of you trading any stock index futures contracts, i.e., the E-mini S&P, E-mini NASDAQ, E-mini Dow Jones etc., it is extremely important to remember that we are now rolling over and trading the September 2019 contract.
Starting June 13th, the September 2019 futures contracts will be the front month contracts. It is recommended that all new positions be placed in the September 2019 contract as of June 13th.
Volume in the June 2019 contracts will begin to drop off until its expiration on Friday June 21st.
The month code for September is U19
In between, 30 min chart of the mini NASDAQ for your review below, on the short term, market can decline some more if we stay below the 7500 level.

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.

 

Futures Trading Levels

06-13-2019

 


Economic Reports, source: 

bettertrader.co

 

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 Futures Silver Chart & Trading Level 6.07.2019

June 6th, 2019 Filed under Commodity Brokers, Commodity Trading, Day Trading, Futures Broker, Futures Trading, futures trading education | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

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Is the silver market finally waking up?
A look at weekly chart below.
Are you tired of day-trading and getting stopped out?
  1. As a hedge, no need for stops
  2. As a pure speculation. A relatively inexpensive way to speculate on market direction in a time frame that can be for minutes, hours or a few days without the need to use stops.
Briefly, the definition of an option contract from the National Futures Association is: An investment vehicle which gives the option buyer the right—but not the obligation—to buy or sell a particular futures contract at a stated price at the specified expiration date. There are two separate and distinct types of options: calls and puts. These weekly options are European Style, Exercisable to the nearest futures contract at 3pm Central time on Friday. If in the money by any amount, the exercise is automatic.

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.

 

Futures Trading Levels

06-07-2019

 


Economic Reports, source: 

bettertrader.co

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.


June Crop Outlook & Futures Levels 6-04-2019

June 4th, 2019 Filed under Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

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Get Real Time updates and market alerts on Twitter!
Market Movers Video
June Crop Report Market Outlook
Will weather conditions and resulting planting delays create a historic month for the corn market?
In this video, Dave Hightower, Founding Principal of The Hightower Report, and Dan Basse, President of AgResource Company, discuss how mother nature may impact the upcoming crop season.

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.

 

Futures Trading Levels

06-05-2019

 


Economic Reports, source: 

bettertrader.co

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.


Trading Videos+ Trading Levels for June 4th

June 3rd, 2019 Filed under Commodity Brokers, Commodity Trading, Currency Futures, Day Trading, Economic Trading, Financial Futures, Future Trading News, Future Trading Platform, Futures Broker, Futures Exchange, Futures Trading, futures trading education | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

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Get Real Time updates and market alerts on Twitter!
Trading 101: Trading videos on bollinger bands, Parabolics, Trading levels, Range Bars and more!
Watch the latest trading videos we have posted and shared with our clients!
In this week’s newsletter we are sharing two videos, each a few minutes long. The videos discuss practical tips for trading and sharing our experience with you
1. Using bollinger Bands as a possible tool for exiting trades
2. One way you can use the Parabolics study ( also known as PSAR) to manage current positions, possibly as a trailing stop
3. Different ways traders can utilize support and resistance levels in their trading.
4. Entering trades on a stop, using “price confirmation”.
5. Utilizing Range Bar charts for shorter term trading as a way to try and filter out some noise.

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.

 

Futures Trading Levels

06-03-2019


Economic Reports, source: 

bettertrader.co

 

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.


Crude Oil Futures Trading Updates for February 2019

February 18th, 2019 Filed under Crude Oil, Day Trading, Futures Trading | Comment (0)

Crude Oil Futures Trading Updates for February 2019

Crude oil futures experienced one of the strongest sell offs to finish 2018. The market sold from the mid 70’s into the mid 40’s in a matter of 7 weeks.

See daily chart below:

 

There were many reasons for the sell off. US China trade talks or lack off, OPEC production, US $ strength and much more but all this is old news at this point and the main focus of futures traders going forward is ”what next?” Before I try to answer that, lets take a look at some key factors that are general in nature to futures trading and crude oil futures trading:

Crude Oil is part of the energy sector along with “it’s” brothers “RBOB – Unleaded gas” and heating oil and cousin, natural gas. All traded on the NYMEX/GLOBEX exchange.

Crude Oil Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $3410 initial, $3100 Maint. ( as of the date of this newsletter)
Point Value: full point = $1000 ( Example: 71.80 to 72.80 ). Min fluctuation is 0.1 = $10 ( Example: 71.80 to 71.81)
Settlement: Physical, deliverable commodity

Months: Monthly cycle, All Months

Weekly Options: YES
Crude Oil is one of my favorite markets for Day Trading because of the intraday volatility and movements. Be careful, these factors can work against you or in your favor.

Some of the basic fundamentals to keep in mind when you are considering a trade in the crude oil as well as other energies

  1. Longer term view of current market prices
  2.  Dates and times of important reports. Namely, Tuesday afternoon report (API) and the DOE report on Wednesday mornings at 10:30 Am EST
  3. Weather and Seasonality
  4. Correlation to US Dollar prices
  5. Inflationary prospects
  6. Geopolitical Stability
  7. U.S. Fiscal and Monetary Stability

Keep in mind that the GLOBEX/NYMEX also offers the mini Crude oil contract which is half the size and may be a good alternative for smaller/ begginer traders.

MINI Crude Oil Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $1705 initial, $1550 Maint. ( as of the date of this newsletter)
Point Value: full point = $500 ( Example: 62.80 to 63.80 ). Min fluctuation is 0.25 = $12.5 ( Example: 61.80 to 61.825)
Settlement: Cash Settled commodity one day prior to the Big Contract

Months: Monthly cycle, All Months

So just like when you are trading any commodity or futures contract, one has to ask themselves the following questions in my opinion:

  • What time frame are you trading / looking at? Seconds and minutes? Hours and days or maybe even weeks and months? The answer can definitely impact the type of strategy you will use
  • Do you have a view of the market? Is it going higher? Going lower? Range bound? Is there a trend?
  • What is your personal preference? Risk capital? How much time do you have for following the markets?
  • Are you experienced enough to take a go at it on your own or would you like to chat/ discuss, dissect the markets with a commodity broker, a series 3 licensed futures broker?

If your goal is to scalp and day trade crude oil futures, then take a look at what I consider a timeless piece I wrote a few years back on how to utilize fear and greed to day-trade crude oil futures.

This article has some chart examples and specific trading set ups using crude oil futures trading: Crude Oil Day Trading

Now back to the “million dollar question” – What is next for Crude Oil Futures in the next few weeks?

In order to answer that I will look at the daily chart above and then take a look at the weekly chart below:

Based on the fact that we had a major sell off that stopped on support levels, the fact that we are bouncing since then and the opinion I hold that crude oil longer term pressure is still down, my current view for this market is that we will see expanded range bound trading. I am looking for the market to trade between $48 and $59 ( hence the word expanded) over the next few weeks and perhaps more BEFORE it may attempt to take another stab at the down side.

“Well, what good is that you may say to yourself…..” If I am right and you are willing to speculate with risk capital, then this information can be valuable.

My preferred method would be to try and sell call options spread ( vertical call spreads) when the market rallies and sell vertical put spreads when the market sells off. Selling options is a risky strategy!! It is not for new commers and you can learn much more here.

The main theory behind selling the calls and the puts is to take advantage of the time decay of options.

As many of us know, geo political events affect the markets in general and crude oil futures in specific. No one can tell what news, wars, events will take place and that is obviously the unknown factor.

I tell my clients many times on different occasions that entering a trade is only the first part of the equation, the main and even more important part is: how to manage the trade? Where do I exit if I am correct? Where should I exit if I am wrong? Should I use multiple contracts? How much am I willing to risk on the trade?

Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains – this one is not different. If you need help creating a trading plan, visit our broker assist services.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. 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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