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In This Issue
Important Note About Risk and Volatility
Introducing E-Futures Private Content: Chart Patterns
Economic Reports and Expiration Notices
GOOD TRADING!
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Newsletter Archives
December 30, 2008
The last few days we have witnessed volatility levels that the markets have not seen since September 11th, 2001.
Each trader must examine how this increased volatility effects his or her trading.
Each trader is different and must assess and understand his mental as well as financial risk tolerance. You must take time to measure risk versus reward in any trade, taking a step back and not allowing yourself to be emotionally blinded by this market.
There are two aspects we urge you to review. The first is your money management and survival; the second is the concept of margin, in theory and in reality.
Survival - This is the key! Do what you need to do in order to survive this brutal business and give yourself the chance of being here down the road with more experience and a better chance of success. Survival is probably the biggest key for beginner traders.
Money Management - While it is closely related to survival, money management can also stand alone. For your own survival, you must set trade/daily/weekly loss limits. Sound money management is closely associated with knowing your risk-reward ratio (per trade and per time frame).
Margin is an extremely important concept both in theory and practice. It can also to help you with money management and survival.
Day-Trading margins versus overnight margins:
Day-trading margins apply to the amount of money one needs to have in his account for trades that are opened and closed within the same day. Many traders currently have access to trading with day-trading margins as low as $400 per contract - for example for the e-minis. While this allows for more aggressive buying power, it also increases your exposure in the market.
Overnight margins apply to holding an open position beyond the close at 4:15 p.m. New York time for 1 contract of the e-mini S&P 500 is currently, as set by the Chicago Mercantile Exchange, $4500.00 to be maintained above $3600.00.
Of course, if you have multiple positions you would multiply $4500.00 by the number of contracts that you will be responsible for.
For more information on current margins, visit our live margins page.
These markets are risky and when you leave positions open at the close of the Market at 4:15 pm New York time, you leave yourself and your broker at risk.
At 4:15 New York time you must be fully margined for any position you hold.
If you are not fully margined, please be aware that our risk department may liquidate your account to prevent deficit.
We are proud to announce a new feature on our website E-Futures.com by Cannon: E-Futures Private Content.
After registering in just a few seconds, you will have lifetime access to all future Private Content published by Cannon Trading on E-Futures.com.
Our first section of Private Content is an in-depth educational collection of chart patterns. Learn about the 13 most common chart patterns, how to identify them, and what they may mean for your trading.
Once you have registered, you will never have to fill out another name, email, and phone number form again for E-Futures Private Content. Your login will be your email address, which you can simply enter when you return to view all Private Content.
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 09/18 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - Leading Indicators(Aug) 9:00 AM CDT - Philadelphia Fed(Sep) 9:35 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
LT: Sep DJIA(CBT)
Sep Valueline(KCBT) Sep NASDAQ 100(CME) Sep Coffee(ICE) Sep S&P 500(CME) Sep NYSE Index Sep Valueline Options(KCBT) Sep DJIA Options(CBT) Sep S&P 500 Options(CME) Sep Nasdaq 100 Options(CME) Sep Russell 2000 Options(CME) |
| 09/19 Fri |
|
LT: Sep E-mini S&P 500 Options(CME)
Sep E-mini Nasdaq 100 Options(CME) Sep E-mini Russell 2000 Options(CME) |
| 09/22 Mon |
2:00 PM CDT - Cold Storage
|
LT: Oct Crude Oil(NYM)
|
| 09/23 Tue |
|
|
| 09/24 Wed |
9:00 AM CDT - Existing Home Sales(Aug)
9:35 AM CDT - API & DOE Energy Stats |
FN: Oct Crude Oil(NYM)
Oct Cotton(ICE) |
| 09/25 Thu |
7:30 AM CDT - Cotton Ginnings
7:30 AM CDT - Durable Orders(Aug) 7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - New Home Sales(Aug) 9:35 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
LT: Sep Feeder Cattle(CME)
Sep Feeder Cattle Options(CME) Oct Heating Oil Options(NYM) Oct Silver Options(CMX) Oct Gold Options(CMX) Oct Copper Options(CMX) Oct Natural Gas Options(NYM) Oct RB Gasoline Options(NYM) |
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** 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 herein 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 judgment in trading!