{"id":17714,"date":"2022-05-04T12:15:45","date_gmt":"2022-05-04T20:15:45","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=17714"},"modified":"2022-05-04T12:15:45","modified_gmt":"2022-05-04T20:15:45","slug":"get-staying-power-in-volatile-markets-support-and-resistance-levels-5-05-2022","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/get-staying-power-in-volatile-markets-support-and-resistance-levels-5-05-2022\/","title":{"rendered":"Get Staying Power in Volatile Markets & Support and Resistance Levels 5.05.2022"},"content":{"rendered":"
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Get Real Time updates and\u00a0more on our private FB group!<\/div>\n
https:\/\/business.facebook.com\/groups\/1105191589938254\/<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Basic and Effective Strategies for Trading in Volatile Market Conditions<\/h1>\n
By Mark O’Brien, Senior Broker<\/div>\n
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It\u2019s a well-known saying \u2013 attributed to\u00a0John Maynard Keynes: \u201cMarkets can stay irrational longer than you can stay solvent.\u201d\u00a0Two conclusions you could derive from Keynes\u2019 observation: 1.) timing any market is not practicable and 2.) using leverage in volatile markets calls for genuine caution.<\/div>\n
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We are in the midst of a remarkable display of volatility in nearly every commodity asset class and futures traders can find entering trades a formidable endeavor.\u00a0The question of where to place protective stop orders becomes more of an informed guess than before these recent months.<\/div>\n
But this should not deter traders from entering markets, because there are numerous strategies \u2013 by and large incorporating options \u2013 that can allow your trades to withstand persistent up-and-down price action.<\/div>\n
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One of the simplest and more common strategies for futures traders is the incorporation of a purchased call or put option<\/a> against an associated short or long futures position.\u00a0Depending on the option\u2019s strike price and expiration date, the maximum risk to an adverse move in the market can be precisely calculated.\u00a0In addition, the risk to an adverse move in the market during the option\u2019s lifespan up to its expiration date \u2013 based on the futures contract\u2019s price \u2013 can also be very closely calculated.\u00a0At the same time, the position\u2019s profitability can also be determined as a result of favorable market movement \u2013 over time and price.<\/div>\n
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This strategy has the important advantage of limited risk and price tolerability during adverse moves in the market that stop orders do not provide.\u00a0The trade-off comes at the cost of the purchased option and its overall loss in value as a result of time decay during its lifespan as well as its loss in value incurred during a favorable market move for the futures contract.<\/div>\n
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Contact your Cannon Trading broker<\/a>\u00a0for additional information on this strategy and assistance in calculating a particular long option\/opposing futures position to see if it relates to your trade style\u2019s risk considerations.<\/div>\n<\/div>\n<\/div>\n
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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.\u00a0 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.<\/p>\n

Futures Trading Levels<\/strong><\/h3>\n

05-05-2022<\/p>\n

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Improve Your Trading Skills<\/h2>\n
Get access to proprietary indicators and trading methods,\u00a0consult with an experienced broker<\/a><\/div>\n
\u00a01-800-454-9572\u00a0Explore trading methods.\u00a0Register Here<\/a><\/div>\n


\n<\/a>Economic Reports, Source:\u00a0<\/strong><\/h3>\n

Forexfactory.com<\/a><\/p>\n

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This is not a solicitation of any order to buy or sell, but a current market view provided by\u00a0Cannon Trading Inc<\/a>. Any statement of facts\u00a0here in\u00a0contained are derived from sources believed to be\u00a0reliable,\u00a0but are not guaranteed as to\u00a0accuracy, 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\u00a0judgement\u00a0in trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

Get Real Time updates and\u00a0more on our private FB group! https:\/\/business.facebook.com\/groups\/1105191589938254\/ Basic and Effective Strategies for Trading in Volatile Market Conditions By Mark O’Brien, Senior Broker It\u2019s a well-known saying \u2013 attributed to\u00a0John Maynard Keynes: \u201cMarkets can stay irrational longer than you can stay solvent.\u201d\u00a0Two conclusions you could derive from Keynes\u2019 observation: 1.) timing any […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67,358],"tags":[],"class_list":["post-17714","post","type-post","status-publish","format-standard","hentry","category-future-trading-news","category-futures-trading-education"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/17714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=17714"}],"version-history":[{"count":1,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/17714\/revisions"}],"predecessor-version":[{"id":17715,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/17714\/revisions\/17715"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=17714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=17714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=17714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}