Futures Trading

Category Archives: Futures Trading

Futures trading is done by two main parties, one of which is the hedger and the other one is the speculator. Where a speculator is there to trade for either their own accounts or that of their clients, a hedger always uses futures as a possible protection from losses. Hedgers can also be described as individuals or business owners who are more risk averse. Speculators and hedgers are likely to benefit from futures trading if the trader has a strong ability to analyze the markets and understands that future behavior. Though futures can behigh risk, they offer an equally high return and are thus very tempting.

In case you are new to futures trading you need to understand how things work. We at Cannon Trading are there to help with your understanding of all the elements of futures trading and also counsel and advise you with the same. Our knowledge base featured on our website, is a store house of information. In order to know every aspect of futures trading, you must read through these articles that have been listed in this category archive. Go through it and get better informed!


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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Get Real Time updates and market alerts on Twitter!
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.


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.


How to Trade Futures With Cannon Trading

April 15th, 2019 Filed under Future Trading News, Futures Broker, Futures Trading | Comment (0)

How to Trade Futures

Beginning your portfolio in the futures market can be a daunting, if ultimately rewarding, task. While there are many factors that determine a trader’s success, the most profitable portfolios are built by traders who are thoughtful and strategic from the outset. Therefore, it is important to know the steps a successful trader takes when beginning in the market.

The first step for any successful trader is to find a qualified professional broker. At minimum this means someone who works at a brokerage that is registered with the CFTC and member of the NFA, is willing to display a public profile and has a verifiable track record of expertise. Transparency is key in any broker-client relationship, and a qualified broker should be up front about all the ways in which they can help you reach your highest potential in the futures market.

Once you’ve determined these basic qualities in a potential broker, it is important to assess your needs and goals in the market and identify which brokers will best help you meet them. Begin familiarizing yourself with the various market exchanges, analyze your own assets and financial goals, and specify your strengths and weaknesses as a new trader. Once you have a basic idea of what you will need from your broker, go through your options and see which brokerages offer the help that you need. What types of trading platforms are offered by the broker? How available are they on a daily basis, both during and after trading hours? What do they consider their specialty in futures trading? What commission rates do they offer? These are all important questions to ask when interviewing a potential broker. Ideally, as a first-time futures trader, you will find a broker who is available both during and after trading hours, offers a variety of platforms, and has a broad range of experience in the field. And remember, a low commission rate is only a factor, and not the whole of selecting a trader, bargain basement rates often accompany poor broker service.

After selecting a broker, you will be set up on a trading platform that you both have determined is best for your needs. Every trading platform should offer a demo period. It is important to trade in the demo mode for 3 to 4 weeks to get comfortable with the platform and begin identifying your trading strategy. One important thing to remember is to follow the trend. Every futures market follows a certain trend with set guidelines that determine the market’s direction. As you take your demo time to become more familiar with your chosen area of the futures market, your trading should reflect the trend of this market. Another important rule of thumb is: don’t overplay a market. It is easy to be overcome by a series of successful trades, but it important to stay on task, trade objectively and avoid frequent entrances and exits into any given market. When in the trial period, try to journal the ebbs and flows of your given market every day. Seeing the market volatility laid out from your trial run will help you stay calm when you’re ready to trade, thus avoiding rash, and often costly, decisions.

After your trial run, it is time to go live. Do not get caught living in demo mode, if you have done your research and followed your demo run closely, you will be ready to go into the live market with confidence in your strategy, and trust in your broker to help you through the more challenging trading days. Start off by trading one contract, and communicate with your broker frequently to confirm that they are available when you need them. As you expand your portfolio, spread out your risk capital by diversifying your portfolio into a few different markets. Continue to follow your strategy, journal the trends, and stay in close communication with your broker.

At Cannon Trading, our brokers are experienced, transparent, knowledgeable, and available. For over thirty-years we have provided top-quality individual service to our clients. We offer a variety of trading platforms and work with several introducing brokers, making it easy for us to customize our services to your trading needs. Our trade desk is available 24/7, and our brokers answer the phones right away during trading hours. Our clients not only benefit from our experienced brokers, but also access to our daily newsletter and frequent articles summarizing the market trends, outlining tips and tricks, and taking our clients step-by-step through the process of conquering the futures market. We also offer competitive commission rates to new clients. As a new trader to the futures market, working with a brokerage you can trust is paramount, and our clients have trusted us to be their market allies for decades.

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.


How to Invest in Commodities With a Futures Contract

March 18th, 2019 Filed under Commodity Trading, Futures Trading | Comment (0)

Futures Contract

If you are new to investing, you probably started with or have experience in stocks. Stocks are an excellent way to gain experience in investing, and grow your investment portfolio. With your newly gained experience, you may be ready to take on some more sophisticated asset classes, such as commodities which can often be more complicated and more risky, but yield a much higher return. At Cannon Trading, we will walk you through everything you need to know about how to invest in commodities effectively for the highest overall return, and pair you with your own professional broker to achieve your trading goals.

If we are going to learn how to invest in commodities, first, let’s begin by defining what a commodity is. A commodity is defined as a select group of basic goods in demand all across the globe. This includes harvested goods such as wheat, corn and flour, as well as energy sources and metals such as oil, gas, gold and aluminum. Since it is such a vast category, commodities are divided into two groups: hard and soft. Hard commodities such as metals and gas require mining or drilling while soft commodities are things that are grown and require harvesting. These commodities are global, and as such, is a good idea to invest in them. Since these are global assets, people often don’t care, or don’t think about where they come from, or if there is any brand name attached to it making it wise to invest in commodities.

Beginning in the 1800’s, finding a trader willing to take a position in a forward contract was an easy task, but much more difficult to find a trader at the time of contract settlement. As a result, the Chicago Board of Trade created futures contracts. The objective of futures contracts is to minimize the risk of fluctuating prices by putting up and maintaining fixed original margins. When investing in commodities, this fixed pricing is vital. Commodities trading began shortly after with the trading of agricultural goods. As the market place expanded, it began to involve financial contracts such as government backed securities, foreign currency, metals, energies, and more. With these resources being naturally occurring, investing in commodities may seem like a safe option. However, it is this trait that makes them prone to supply and demand, and the risk control became necessary for farmers.  

This is where learning how to invest in commodities becomes risky. Commodities are naturally occuring, making investing in them an often volatile practice due to the nature of supply and demand. Depending on the individual product’s relationship with supply and demand will make investing in some commodities more risky than others. For example, a bountiful harvest of wheat crops in a season will increase our supply of wheat causing its price to fall. However, in the event of a naturally occurring threat such as a drought or flood, prices of wheat may go up for lack of future supplies. How can you choose which commodity to invest in? It is important to note that some commodities are more volatile than others. At certain times, hard commodities like gold can be less volatile than soft commodities like wheat or corn, and other times the opposite is true. When learning how to invest in commodities, it helps to imagine which commodity will be more consistent, and which will involve a higher risk/reward ratio when basing your decision.

When learning how to invest in commodities, it is important to know your options. Given commodities are mostly physical goods, there are several options you can take. The first is investing this your commodity directly by buying the actual physical product. You can also buy shares of stock in companies producing your commodity or exchange-traded funds specializing in your commodity. If you are looking for an alternative, you may want to look into a futures contract. A commodities futures contract specifically is an agreement between a buyer or end user and a seller to make or take delivery of a commodity at an agreed upon price at a designated date. A futures contract will help to mitigate unforeseen fluctuation in the value of commodities and ensure that the transaction is honored by all those involved.  

Any successful financial portfolio requires diversification. Your financial portfolio should be filled with diverse asset classes and commodities that will react differently to the financial world around them. Investing solely in soft commodities in one area may lead to financial hardship in the event of a low supply yield. Investing in solely hard commodities such as gold and crude oil can be cumbersome and hinder your diversification. Cannon Trading offers more information and helpful resources on how to invest in commodities. You and your broker will work together to achieve your trading goals and grow your portfolio. You will also have access to tools and valuable market information to help you begin diversifying your portfolio with valuable commodities. In an impersonal world, having a good relationship with a high quality broker can make all the difference.

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. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources.  

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