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Tag: Online Futures Trading

Different Ways to Invest in Commodities and Futures

Posted on by Ilan

When it comes to investing in commodities/futures there are several different ways to do so. I’ve been a futures broker at Cannon Trading Company for about 4 years and I wanted to touch base on a few different ways I have seen clients trade and invest in futures and commodities over the years.

I have seen many investors (small and large) participate in trading ETFs or ETF funds. With ETFs you do not own the actual commodity but you are looking to track the performance on either a single commodity or commodity index containing many different commodities through either its physical storage or derivatives positions in the market.

I do not accommodate trading ETFs or ETF funds with my actual clients. I am a registered futures broker and here at Cannon Trading Company we do not accommodate ETF trading for our clients. Please keep in mind the differences when trading ETFs versus commodities and futures. With ETFs you may experience management fees where as if you have a self directed futures and commodities trading account you will not experience those types of fees. Also when trading futures, unless you have a limited power of attorney on your account where you authorize another individual to trade your account, there is not a third party making your trading decisions and trading your account on your behalf. Here, at Cannon Trading Company many futures/commodities trader have self directed accounts where he or she makes their own decisions when it comes to trading.

Continue reading “Different Ways to Invest in Commodities and Futures”

How Do I Get Started Trading Futures?

Posted on by Ilan

So you’ve come this far. You’ve evaluated different vehicles of investment, and you have decided to expand your portfolio to include commodity futures. Now what? You are going to need a few tools at your disposal: a knowledgeable commodity broker that is quick on their feet, a reliable, efficient platform that will get you the information you require and executes your trades on a timely basis, and perhaps most importantly a plan.

Let’s begin with the most important requirement: because futures are so highly, there’s no doubt it can be a very risky asset class and you should only be trading with “risk capital”, or money that you can stand to lose and won’t affect your lifestyle if you do. Once you’ve accumulated your risk capital and you’ve come to terms with the nature of trading futures, you can take matters a step further by doing research on what kind of trader you want to be.

Continue reading “How Do I Get Started Trading Futures?”

Entering into Futures Trading

Posted on by Ilan

Futures trading can be a rewarding investment for those with an in-depth understanding of a particular commodity. In essence, you will be buying or selling a commodity based on its future selling price. For example, if you can buy a futures contract at a low rate and sell it for a higher price, it’s possible to gain a significant profit in the transaction. But before wading into this highly speculative market, there are some things you will need to do and know about trading futures markets.

First, you will need to enter an agreement and create an account with a commodities broker. These brokers are licensed professionals who are allowed to trade in commodities on the trading floor of an exchange. Accordingly, they manage and mediate futures trading between buyers and sellers as well as keep track of the prices of futures contracts. Because of their knowledge of the market, they can help you make sound investments and recommend an investment strategy that suits your profile.

Continue reading “Entering into Futures Trading”

More Trading Education – Support and Resistance Levels

Posted on by Ilan

Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – March Corn, March Wheat, Jan Beans, March Silver
5.Economic Report for February 9, 2012

1. Market Commentary

Hello Traders,

Another educational piece today:

I am being asked by clients and prospects what do I use for Intra-day support and resistance levels and the answer depends on a few factors like the time frame one trades, risk -reward applied to each trade, personality of trader and much more.

Below is 3 different studies I use for intra-day support and resistance.

All these studies and screen shots are from our ATcharts ( sierra charts) which active clients can get for free and prospects can have a 30 days free trial.

1. For charts of 15 minutes and lower time frames, tick charts, volume charts etc. I like to use the variable pivot levels found in ATcharts from the study menu. I then click on settings and set the variable period to 60 minutes. Here is what it looks like on a 3 minutes chart of the Crude Oil from today:

Market Commentary
Market Commentary

2. Another tool I use for the lower time frames is the Fibonacci Auto retracment, again this is a built in study in the ATcharts. The chart below if mini SP , 10000 volume chart from earlier this morning. WHat I like about the auto fib is that the nature of the formula takes in the days ranges as the market develops.

ATcharts
ATcharts

3. For time frames of 15 minutes and larger, like 30 minutes chart, hourly etc. but smaller than a daily chart, I like to use the simplified levels of market profile, called TPO value area lines in the study menu of sierra charts. The one below shows these levels on an hourly chart of April gold from today:

TPO
TPO

Continue reading “More Trading Education – Support and Resistance Levels”

Futures Trading Levels, Key to Successful Trading Special Feature

Posted on by Ilan

Special Feature: The Key To Success as a Trader

By: Cannon Trading Staff

What makes one trader successful, while another is not?

futures trading success key

Is it intelligence? No. If it were, then doctors, lawyers, and engineers would make the best traders.

Is it the latest software program? No. If it were then the developers of the “magic black boxes” would be the best traders.

Is it experience? No. If it were then all successful traders would be bald or have gray hair, and we know this is not the case.

Is it those that have inside information? No. Be real. In today’s trading world data and information are global and instantaneous.

What then is the key?

Read the rest of the special feature in our weekly newsletter Continue reading “Futures Trading Levels, Key to Successful Trading Special Feature”

Futures Trading Levels and Economic Reports for January 28, 2010

Posted on by Ilan

The short POTENTIAL trading signal on the Dow Cash is still in play but as I mentioned a few days ago:

Just because I have a signal does NOT mean it is a crystal balll…hence I like to see follow through of price action or what I call price confirmation.

That level for me is now 11898 on the cash. My opinion is that a break below, will increase chances for meanigful correction, until then I would NOT fight the trend or try to predict tops.

Updated CASH DOW JONES chart below:

SP-500-Day-Trading-2011-01-28

Continue reading “Futures Trading Levels and Economic Reports for January 28, 2010”

Futures Trading Levels and Weekly Futures Trading Newsletter January 27, 2011

Posted on by Ilan

Some excellent reading material about trading psychology which I personally think is BIG part of trading on our weekly newsletter:
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https://www.cannontrading.com/community/newsletter/
****************************************************************** Continue reading “Futures Trading Levels and Weekly Futures Trading Newsletter January 27, 2011”

Futures Trading Levels and Motivational Quotes, November 30th 2010

Posted on by Ilan

Hope everyone had a nice Thanksgiving weekend and are ready for trading the rest of the week and upcoming December.

Since I have nothing of importance to share trading wise, I would like to share couple of trading quotes I saw today and liked:

“Continually strive for patience, perseverance, determination, and rational action.”

“Successful traders set profit objectives for each trade they enter.”

You may agree or disagree but thought these two quotes were worth sharing! Continue reading “Futures Trading Levels and Motivational Quotes, November 30th 2010”

Futures Trading Levels and Markets Schedule for November 24th 2010

Posted on by Ilan

Busy day ahead tomorrow with significant reports through out the day. Markets are closed Thursday in observance of Thanksgiving and then open half day on Friday.

Overnight news from N Korea and Europe definitely had much bigger on the markets than any technical chart formations…but “looking forward” we sometimes have to look back in trying to project price action.

Levels for your review on the daily mini SP 500 chart below. 1151 is first major support in case declines continues.

SP-500-Day-Trading-2010-11-24 Continue reading “Futures Trading Levels and Markets Schedule for November 24th 2010”

Weekly Newsletter and Futures Trading Levels for November 18th 2010

Posted on by Ilan

Weekly newsletter for your review posted at:
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https://www.cannontrading.com/community/newsletter/
*************************************************************** Continue reading “Weekly Newsletter and Futures Trading Levels for November 18th 2010”

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.