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Tag: futures brokers

Futures Trading Rules & Unemployment Reports 04.04.2014

Posted on by Ilan

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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 Friday April 4, 2014


Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Today I must share an observation that may help many of you.

So many times as a broker I see clients who know how to make money… I see it in the daily statements, good winning %, consistent profits UNTIL….something happens. Either the client who is normally a day-trader decides to carry his/hers losing position and make it into a swing trade…..OR the trader is down and refuses to accept the fact it may be a losing day and decides to double down and get more aggressive because if this trade is a winner he will have another winning day….the examples go on and no I am not referring to anyone specific although many of you probably think I am talking about them.

I have done it before as a trader. It is the inability to accept a loss that creates this snow ball.

I am to a psychologist not a professional writer ( English is my second language if you did not tell by now (-:

What I am hoping for is that by writing this I may help the “good voice” inside your head that tells you DON’T double down OR just keep the stop win over that bad voice that is whispering to you to go ahead and reverse the position and double it when it is clearly not in your game plan… Trading is tough mentally, financially and emotionally, help yourself be a better trader by being a more disciplined trader.

ON A SIMILAR NOTE:

Monthly unemployment figures come out tomorrow morning. That would be a great time to excessive discipline and control of what is written above…..

Continue reading “Futures Trading Rules & Unemployment Reports 04.04.2014”

How Discount Brokers Work?

Posted on by Ilan

Discount Futures Brokerage is formatted to provide a more cost effective way of trading futures for experienced traders who are comfortable placing trades over the internet , using their personal computer..

Discount Futures Brokers typically offer lower service fees and take a more minimal role in daily trading decisions. What you are essentially using a broker since then, is to place orders and for representation on the exchange floor. It is true that futures trading, or any trading market for that matter, could not operate without market participants and market professionals representing those participants. With commodities markets being so risky, regardless of cost it is clear that qualified brokers are vital to the success of participants of various markets.

What’s The Difference?

The biggest difference with discount brokers is the client’s ability to be more self-directed with their trading profile. The risk associated with futures trading disclaims that there is no guarantee of profit no matter who manages your money. No matter the level of involvement, brokers still represent the interests of every client and are likewise as valuable.  The need for Futures Trading Brokers will never become obsolete, so the emphasis on discount brokerage need be on discounted commissions and fees, not discounted service.

Below is a list of lesser or excluded fees associated with a discount futures brokerage:

  • Account Maintenance Fees
  • Platform Fees
  • DataFeed Fees (Online/E-Trading)
  • Low Margin Investments
  • Broker Support Fees

Another difference with discount brokerage is the type of platform often used for this type of futures brokerage service; online. Online Futures Trading is in some cases synonymous with a discount futures brokerage. The reason this is, is due to lower costs associated with online platforms that allow you to do most of the monitoring of real time market data. A wide selection of online futures companies provide the software you can download to use to trade and build a profile. When one places orders online, he doesn’t need to call his broker and place orders via phone. That saves the time of the broker and allow for lower, discounted fees.

Continue reading “How Discount Brokers Work?”

3 Risks of Using a Discount Futures Broker

Posted on by Ilan

With the advent of technology, the means to communicate clear objectives, or with any human, drives most people to ignore full-service futures brokers. Why? It is a spirit of independence. Computers have created a superhighway of trading, and accelerated the pace at which commodities, stocks, in short the financial market operates. These various methods have raised barriers between clients and full-service brokers, but given rise to- discount futures brokers. In reality, what the future of the financial markets beckons, is a direct and honest appraisal of the quick and easy model, versus the client and broker relationship. If the “Great Recession” taught us all anything, if you are not vigilant, or the means to track your investment, there is an inherent risk.

Knowledge vs. Education

Brain to Understanding is to hat on a head, both are useful, if absolutely used for maximum benefits to create larger profits to debt losses. Most experienced futures brokers understand the full scope of the financial market, and this long range vision gives insight into the behaviors of certain commodities. Conversely, when opting out of choosing a full-service futures broker, you are presented with limited tools, vision and insight.

Vision, in the entrepreneurial sense, is the act or power of anticipating what will come to be. If you are a newcomer, choosing discount futures brokers, may lead to a lack discernment or experience to sell or buy at appropriate times to gain the maximum profit, while minimizing the loss. This vital quality reigns supreme on experienced traders in the financial sector. However, the key to having a strong vision is insight.

Insight varies to vision, in that you see both near and far and eventually the end result of a business decision. Good judgment plays an integral part in evaluating leverage metrics, whether using gold as a hedge, or evident world events that will signal either a sharp decline or increase in the markets.

Overall, vision and insight, help with the learning curve in the futures market. In addition, being green in this market can cost you a great deal of time and money. Adding vision and insight to your expansive market toolbox can aid in shortening common investment mistakes, with the aid of the seasoned futures broker as your guide. Conversely, selecting a discount futures broker, they may not have the ability to reign in your decision making. Bad decisions – loss of profit. Consequently, bucking traditional wisdom, you could lose larger returns, and run into dangerous investment decisions.

Continue reading “3 Risks of Using a Discount Futures Broker”

What to Look For When Comparing Futures Brokers

Posted on by Ilan

Great risks and great rewards are two of the main principles founded in trading. Since 1848, where resides the world’s oldest and largest functioning options exchange, individuals have made fortunes and lost companies, behind this fickle industry. In the futures market, these two linked together, can lead to greater success, but how? Firstly, let us look at the components of a futures market, and futures brokers. In short, the futures market can be compared to the stock market, but with a focus on the future rise or fall, particularly in commodity prices (the price of raw materials and primary products) such as:

  • Cocoa
  • Oil
  • Coffee
  • Gold
  • Copper
  • Wheat

To name a few…

The above aforementioned goods form what is considered to be the commodities market. Though Cocoa and wheat are considered soft commodities, and lumber oil and electricity are hard commodities, these both are secured by futures contracts, which entail physical assets. Futures broker diligently watches commodity markets, assesses two indicators, supply and demand. As a general rule, the determination of supply and demand, generally dictates the amount of money to allocate to a certain position in the commodities market. Once this position is held, the futures broker can predetermine the value of a commodity. Moreover, if the forecast was apt, you sell high and receive a larger profit, on the converse, a wrong forecast could lead to a loss of your initial risk capital. Losses in general, are hard to accept, however, without a great risk, yes the potential gain is greater, but we always have to calculate the loss.

When we talk about a loss in investment, inherently, it is a part of the mind, which is usually ignored. Accepting a loss, to survive in this industry requires fortitude and discipline. Why? The first instinct, when you lose money, is to double-down. Briefly, to double down depend mainly on if you see a future in the market that you are investing in, and if not, simply cut your losses. Consequently, with great uncertainty in the commodity markets, and a brief overview of this vast aspect of the financial sector, how can you choose a prudent, savvy, yet, sage futures broker?

Continue reading “What to Look For When Comparing Futures Brokers”

Futures Trading Levels and Economic Reports for October 15, 2013

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

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 Tuesday October 15, 2013

Hello Traders,

For 2013 I would like to wish all of you discipline and patience in your trading! 

Most Common Pitfalls To Avoid When Trading Futures-Commodity Futures

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500 experienced futures brokers were asked what caused most futures traders to lose money when comes to trading futures.

Their answers reflected the trading experience of more than 10,000 futures traders.  Download the PDF and find out what they said.

1.) Have a Plan

Many futures traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they “second guess” it and don’t stick to it, particularly if the trade is a loss. Consequently, they over trade and use their equity to the limit (are under capitalized), which puts them in a squeeze and forces them to liquidate positions. Usually, they liquidate the good trades and keep the bad ones.

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2.) News Factor

Many traders don’t realize the news they hear and read has, in many cases, already been discounted by the market.

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3.) Trade Objectively

After several profitable trades, many speculators become wild and non conservative. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that “can’t fail.”

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4.) Know Your Size

Traders often try to carry too big a position with too little capital and trade too frequently for the size of the account.

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5.) Don’t Get Greedy when it comes to Trading Futures

Some traders try to “beat the market” by day trading, nervous scalping, and getting greedy.

Choosing Your Futures Broker: Five Straightforward Measurements

Posted on by Ilan

Whether you’re planning to open a self-directed futures account, or one where a broker supports the trading of your account – in some large or small way – there are several important factors you should consider when you decide to open an account and start trading. Everything a brokerage firm offers – or doesn’t offer – comes at price. Typically that price is boiled down and quoted in terms of what’s charged when you make a trade – commissions and exchange fees – and maybe a short list of other costs. But choosing a futures broker by simply comparing the “bottom line” of commissions can be hazardous to your trading.

Benjamin Graham, an influential economist and professional investor, is credited with saying, “Price is what you pay; value is what you get.” Because the dollars and cents a brokerage firm charges typically provides for a wider range of services – beyond just trade execution – it’s important you know what those services include, and if they’re important to you or not.

Whether you decide to utilize a discount futures broker or perhaps a full service commodity trading broker, the content below should help you create a guide and understanding to choosing the right futures trading broker for your trading needs and style.

Continue reading “Choosing Your Futures Broker: Five Straightforward Measurements”

Futures Trading Levels and Economic Reports for September 27, 2013

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

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 Friday September 27, 2013

Hello Traders,

For 2013 I would like to wish all of you discipline and patience in your trading! 

A good article if you are a beginner trader, written by Cannon Trading Broker:

Why Didn’t I Get Filled?

“A treatise to Demo Traders”, on behalf of brokers everywhere.
Date: March 03, 2013

By:  Cannon Trading

Demo Trading. Also known as simulated trading, paper trading, playing with Monopoly money; whatever you’d like to call it, a demo can be your best friend or your worst enemy. Every Futures broker dreads having this conversation with their clients, as it is necessary with every new trader; however, much to a broker’s chagrin, every new trader will say that they already understand when in fact they rarely do. Let me assure you, if you’re a new or even intermediate trader, you probably don’t. You may understand one popular issue of the conversation but odds are if you have been paper trading for five years waiting to be “successful” or to “understand the futures markets” in the simulated world before moving on, you have less of a chance of being successful in the live futures markets because you’re setting yourself up for failure (if you ever do, in fact, trade in the live markets). You should seriously consider speaking with a licensed commodities and futures broker before diving in…Read the full article.

Continue reading “Futures Trading Levels and Economic Reports for September 27, 2013”

Futures Trading Levels and Economic Reports for May 10, 2013

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

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 Friday May 10, 2013

Hello Traders,

For 2013 I would like to wish all of you discipline and patience in your trading! 

 

Not much to write today but I could not believe this article…I guess each of us can make his/ hers own conclusions but to me this reads: ” something is not kosher”!

 

Continue reading “Futures Trading Levels and Economic Reports for May 10, 2013”

Futures Trading Levels and Economic Reports for April 24, 2013

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Like us on FacebookFollow us on TwitterView our profile on LinkedInFind us on Google+Cannon Trading Futures Trading Resistance & Support Levels and Economic ReportsFind us on Yelp

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 Wednesday April 24, 2013

Hello Traders,

For 2013 I would like to wish all of you discipline and patience in your trading! 

 

 Today we witnessed the possibility of erratic moves in the futures market.

From what I am reading, false rumors generated by hackers hit the news with: Explosions in the White House, Obama is hurt….
That resulted in the SP futures dropping 18 full points in matter of minutes.  An intraday chart of mini SP 500 for your review below. Note the huge price drop and volume between 12:06 and 12:12 central time.

That brings me to a point that I like to share, using “auto brackets when entering a trade”. This is my personal preference but when I enter day-trades, I like my software to immediately generate a stop and a limit**. I have the ability to modify these stops/ targets but at least I have orders in the system. This can help in situations like today, when different reports come out etc.

Most of our trading platforms have that ability of auto brackets and you can test drive two of my favorite platforms for free:

TransactAT

E-Futures

mini sp intraday chart

 

 

Futures Trading Levels and Economic Reports for April 23, 2013

Posted on by Ilan

 

Jump to a section in this post:

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 Tuesday April 23, 2013

Hello Traders,

For 2013 I would like to wish all of you discipline and patience in your trading! 

To get a little bit longer term picture, I am sharing my mini SP 500 weekly chart with you. The way I view this chart is that failure to break above 1585 can signal medium term exhaustion of buying and can trigger a visit of 1507. But again…this is just my personal view based on the weekly chart and I have been wrong before, that’s for sure.

 

mini sp 500 weekly chart

 

RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.