In This Issue

6 Tips For Day Trading the Mini S&P 500 by TradingEmini.com

Dec '09 Wheat: Bull Trend

Economic Calendar

October 21st, 2009 - Issue #503

CBOT trading pit

6 Tips For Day Trading the E-Mini S&P 500 by TradingEmini.com

1. Trade with a minimum account of $10-$15k. That way, if you loose $1000-$1500, it only represents 10% of you capital and may a more recoverable number. Compare that to a $3k account where the same loss equals 50% of your account.

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2. Only risk 1% of your capital per trade. That way, your capital can absorb 100 consecutive bad trades. Even the best systems can expect 20% loosing trades, so the 1% rule gives you room to maneuver.

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3. Limit the hours you trade. We prefer the first 60-90 minutes, because typically there can be a good trend before the lunch time chop. Many professional traders trade this time period.

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4. Limit the number of trades you make per day. Four to six is a good number because usually there are up to three trends per day and your aim should be to catch those trends. Overtrading is a typical newbie vice. It racks up unnecessary commission fees and increases the risk of negative emotions like revenge trading.

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5. On any one day, stop trading when losses hit 5-10% of capital. As with point #1 above, a 5-10% loss is recoverable and to have reached such a level you must be reading the market wrongly for whatever reason. So stop before you make the situation worse and then take the time to evaluate your errors.

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6. Base your stop-loss strategically from the charts, not an arbitrary number of points.

Marc from TradingEmini.com is a 14-year trader who worked as a proprietary trader for JP Capital, a division of Andover Trading. For the past 7 years Marc has been offering Private Mentorship with Real Money Calls, made in Real Time. Prior to this Marc was an executive with technology companies such as Sprint and Canon.

You can visit Marc at his website, TradingEmini.com

The placement of contingent orders by you such as "stop-loss" or "stop-limit" order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders. There is a substantial risk of loss in futures trading! Neither the presenter, publisher or Cannon Trading is liable for any losses that may be incurred by the use of the methods described herein and any such liability is expressly disclaimed. There is a substantial risk involved in trading, and not everyone can become a successful trader. Past performance is not indicative of futures results

Dec '09 Wheat: Bull Trend

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Economic Calendar

Source: Moore Research Center, Inc.

* 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!