In This Issue

Top 50 Futures Trading Rules
Hot Market Report – British Pound
Economic Calendar

December, 1st 2010 - Issue #560

Top 50 Futures Trading Rules

Most Common Pitfalls To Avoid When Trading Commodity Futures

500 experienced futures brokers were asked what caused most futures traders to lose money.

Their answers reflected the trading experience of more than 10,000 futures traders. Download the PDF and find out what they said.

   1. Many futures traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they "second guess" it and don't stick to it, particularly if the trade is a loss. Consequently, they overtrade and use their equity to the limit (are undercapitalized), which puts them in a squeeze and forces them to liquidate positions. Usually, they liquidate the good trades and keep the bad ones.

   2. Many traders don't realize the news they hear and read has, in many cases, already been discounted by the market.

   3. After several profitable trades, many speculators become wild and nonconservative. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that "can't fail."

   4. Traders often try to carry too big a position with too little capital and trade too frequently for the size of the account.

   5. Some traders try to "beat the market" by day trading, nervous scalping, and getting greedy...

To Read the Rest of This Article Please Fill Out the Form Below to Download it Now - Top 50 Futures Trading Rules

Disclaimer:

Trading commodity futures and options involves substantial risk of loss. The recommendations 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 futures 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!

Hot Market Report – British Pound

by JS Services

DEC '10 BRITISH POUND ** BEAR TREND CORRECTION **

   - Technically the MKT is correcting a BEAR TREND and remains vulnerable to the downside. On the SELL side accept FADE, REVERSAL and BREAKOUT strategies. DIR and DP BREAKOUT strategies should just "go" with expectations that the negative momentum is going to resume course. UP FADE strategies should wait for confirmation. A better strategy is a REVERSAL, as a violation of a major inflection point that cannot be held is a negative turning point signal with the potential to be the resumption of the negative trend.

   - On the BUY side REVERSAL strategies off the DP or near the previous session or move low will work best with the expectations targeting a new corrective high. Avoid UP BREAKOUT strategies but rather FADE negative reactions off structure after a false breakout against the DIR, taking profits at the UP. If the corrective trade is going to continue, this strategy will work. Once it doesn't, it's time to roll in the other direction.

Previous Days data

Daily	High	Low	Close	Change	Trend	MIN - DOWN	15977
BPAZ0	15595	15483	15569			INT - NEU
BPAH1	15584	15477	15560			MAJ - NEU

Click the image to enlarge

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!