Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!
Walk before you run
By Cannon Trading staff
The image of a successful futures trader is that of a lone wolf surveying the landscape looking for an opportunity to attack and seize quick and substantial profits. We all know about the potential for making a fortune in the futures markets. Yet, few do so. Why is that? What are some of the common pitfalls that prevent this dream from becoming a reality for most futures traders?
One of the most prevalent misconceptions for inexperienced futures traders is that they believe themselves to be smarter than the rest of the commodities market participants. They underestimate the qualifications and abilities of the rest of the futures markets professionals. This business of commodities trading is dominated by very dedicated, resourceful professionals who have invested lots of time and assets into their pursuit of trading futures profits. Competing against these seasoned professionals is not impossible but going at it alone, especially initially, is usually not the most prudent course of action for new futures traders.
When we were children, we learned to walk before we learned to run. This is true for most of our life experiences. We played t-ball before we played baseball. We took lessons from Arthur Murray before we entered dance competitions. We watched cooking shows or read cookbooks before we attempted to deep fry our first turkey. So, why do so many novice futures traders think that they should enter into the world of futures trading without the support of an experienced futures broker? Why, armed with their computers and quote systems do they think that they are equipped to go it alone and be successful? It isn’t logical. It goes counter to our collective life experiences.
If your goal is to trade futures/commodities independently, why not do so after acquiring valuable experience and insight by working with a seasoned professional futures broker? Someone who is already fully engaged in the futures markets. Why not begin by using a mentor, a teacher, an advisor who can supply ideas, guidelines, disciplines, and insights that the novice trader could not otherwise be exposed to? We all learned to drive with the help of an instructor, why not approach the commodities markets in a similar fashion? Your hard-earned capital is at stake. Getting an education can be a very expensive process, especially in the futures trading business. Why not take advantage of the help offered by an experienced professional? Help like this can shorten a new futures trader’s learning curve and reduce the cost of his or her tuition for this education.
It is true that not all commodities brokers are quality teachers or mentors. The futures trader must choose his or her mentor carefully….just as one does when choosing a lawyer, doctor, or accountant. The futures brokers at Cannon Trading as a group are among the finest professionals that you will find anywhere in the futures trading world. The management at Cannon Trading has chosen these brokers prudently and after much scrutiny. This is evidenced by the impressive record of professional business conduct for the past 30 years by Cannon’s brokers. This record can be reviewed by going to www.nfa.futures.org ( the National Futures Association) website and comparing Cannon Trading versus other futures brokerage firms. You will be impressed.
Professional athletes use sports psychologists. Boxers use corner men. Graduate students study under the guidance of their professors. Professional singers utilize vocal coaches. Shouldn’t you as a futures trader avail yourself of the same sort of support that successful people in all of these endeavors use? Take full advantage of all of the tools available to you in your quest for trading profits.
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
|Contract September 2017||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||August Gold||July Silver||August Crude Oil||Sept. Bonds||Sept. Euro|
|Resistance 3||1254.9||16.82||46.24||157 4/32||1.1255|
|Resistance 2||1252.1||16.71||45.46||156 26/32||1.1237|
|Resistance 1||1247.9||16.57||44.49||156 17/32||1.1209|
|Support 1||1240.9||16.33||42.74||155 30/32||1.1163|
|Support 2||1238.1||16.22||41.96||155 20/32||1.1145|
|Support 3||1233.9||16.08||40.99||155 11/32||1.1117|
|Contract||July Corn||July Wheat||July Beans||July SoyMeal||July Nat Gas|
Economic Reports, source:
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.