In This Issue
Trade Analysis by Cannon Trading Co, Inc.
Educational Feature: Dealing With Losing Trades
Economic Reports and Expiration Notices
The following potential trade review was done by Ilan Levy-Mayer, Vice President of Cannon Trading.
Below you will find a daily chart of Corn:
Click the image to enlarge
The market was hit hard the last few weeks and dropped from a high of 4.70 in early June to 3.15 a few days ago.
We are looking for a potential short covering to help this market bounce back to 3.73.
There are a few ways to manage a trade such as this one:
Our brokers at Cannon trading have many years of experience and can assist you in formulating a trading plan, as well as assist you in executing that plan.
Feel free to contact your current broker at Cannon trading with any questions or fill out the short contact form below for additional information.
Cannon Trading respects your privacy and will never give this information to a 3rd party.
Disclaimer
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NO INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
by Jim Wyckoff
(Note: This feature is a favorite of ours at Cannon Trading, and we believe all traders need to address this issue every once in a while.)
A main tenet of success in futures trading is the ability to accept losing trades as part of the overall trading process. This is not an easy undertaking--especially since many futures traders tend to be of a more competitive nature in the first place. Traders certainly don't have to enjoy losing trades, but they must accept the fact and move on. Those who can't accept the fact that losing trades are a part of futures trading usually don't stay in the business very long.
My wife is a school teacher, and one of her favorite acronyms--ADM--can be applied to losing futures trades. "Accept" it. "Deal" with it. "Move" on. (This is a part of the important psychological aspect of trading, and deserves much more discussion than I can provide in this feature.)
I had lunch with one of my trading mentors a while back. We discussed losing trades. I askedmy mentor how many losing trades in a row he has had to endure during his long and successful trading career. His reply was 13 in a row. I asked him how he coped with that. He said that while it was certainly not easy, he knew that losing trades are a part of the business and that he was in the business "for the long haul," and that his trading methodology was sound. He added, "Ninety-percent of futures trading profits are made on 10% of the trades, which means most of the other trades are either small losers or break-even-type trades." This is an important fact for all traders to keep in mind.
My lunch meeting with my mentor was good for me because, even though we made no "break-through" discoveries on the path to increased futures trading success, we did reaffirm our own philosophies on trading and markets. My passion for trading and market analysis is fed immensely every time I talk with people in my profession, or attend the quality trading seminars.
For many of you, the futures trading arena can be more fulfilling (and more fun) if you have someone, or some support group, with which to share your thoughts and strategies. If you are passionate about futures trading and markets, finding someone who shares that passion is a great trading tool within itself!
Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at Jim Wyckoff
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 07/30 Thu |
7:30 AM CDT - Intial Claims-Weekly
7:30 AM CDT - USDA Weekly Export Sales 9:35 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
FN: Aug Natural Gas(NYM)
|
| 07/31 Fri |
7:30 AM CDT - Dairy Products Prices
7:30 AM CDT - Chain Deflator-Adv(Q2) 7:30 AM CDT - GDP-Adv(Q2) 7:30 AM CDT - Core PCE(Q2) 7:30 AM CDT - Employment Cost Index(Q2) 8:45 AM CDT - Chicago PMI(Jul) |
FN: Aug Copper(CMX)
Aug Gold(CMX) Aug Silver(CMX) Aug Platinum(CMX) Aug Palladium(CMX) Aug Soybeans(CBT) Aug Soymeal(CBT) Aug Soyoil(CBT) LT: Jul Fed Funds(CBT) Aug Heating Oil(NYM) Aug RBOB Gasoline(NYM) Jul Fed Funds Options(CBT) Aug Lumber Options(CME) |
| 08/03 Mon |
9:00 AM CDT - Construction Spending(Jun)
9:00 AM CDT - ISM Index(Jul) 1:00 PM CDT - Auto & Truck Sales(Jul) |
|
| 08/04 Tue |
7:30 AM CDT - Personal Income & Spending(Jun)
9:00 AM CDT - Pending Home Sales(Jun) |
FN: Aug Heating Oil(NYM)
Aug RBOB Gasoline(NYM) |
| 08/05 Wed |
7:15 AM CDT - ADP Employment Change(Jul)
9:00 AM CDT - Factory Orders(Jun) 9:00 AM CDT - ISM Services(Jul) 9:35 AM CDT - API & DOE Energy Stats |
|
| 08/06 Thu |
7:30 AM CDT - Intial Claims-Weekly
7:30 AM CDT - USDA Wekkly Export Sales 9:35 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
|
* 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!