Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
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I hate sounding like a broken record but be careful out there!!
Don’t blow your account up ! Control your emotions and stay disciplined.
I personally recommend using HARD STOPS, you don’t want to get caught in some crazy moves or when the FED lower rates in a surprise move…..
Volatility has SPIKED, tremendously. That is a game changer.
IMPORTANT – second round of equity margin increases, this week
ES, $7920 –> $8360
NQ, $9350 –> $9900
YM, $6820 –> $7480
RTY, $3960 –> 4125
Sometimes no trade is better than a bad trade.
The following are my PERSONAL suggestions on trading during these days:
· Reduce trading size
· Be extra picky = no trade is better than a bad trade
· Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 2925.00 with a stop at 2919.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2919.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
· Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
MICROS are a good smaller alternative!!
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 when it comes to Futures Trading.
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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.
Posted in: Future Trading News