July 18th, 2014 - Issue #745

In This Issue

1. What do I need to start trading futures?
2. Hot Market Report: Crude Oil - Is the near term bottom in place?
3. Economic Calendar

1. What do I need to start trading futures?

By: Cannon Trading

How do I get started with Futures Trading?

So you’ve come this far. You’ve evaluated different vehicles of investment, and you have decided to expand your portfolio to include commodity futures, Now what? You are going to need a few tools at your disposal: a knowledgeable commodity broker that is quick on their feet, a reliable, efficient platform that will get you the information you require and executes your trades on a timely basis, and perhaps most importantly a plan.

Let’s begin with the most important requirement: because futures are so highly leveraged (if you are holding one contract of the E-mini S&P 500, the notional value of the contract is 50x the current index price), there’s no doubt it can be a very risky asset class and you should only be trading with “risk capital”, or money that you can stand to lose and won’t affect your lifestyle if you do. Once you’ve accumulated your risk capital and you’ve come to terms with the nature of trading futures, you can take matters a step further by doing research on what kind of trader you want to be.

Self-directed, Broker-assist, or Managed?

One of the most difficult aspects of futures trading is coming to terms with one’s own skill set; what are the characteristics of my trading? What are the flaws and finer points of my trading? Is day-trading the E-mini S&P 500 something I was cut out for, or does my personality gear me more towards swing-trading the grains?

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2.  Hot Market Report:   Crude Oil - Is the near term bottom in place?

From our friend Jim Wyckoff

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 www.jimwyckoff.com click on image below to enlarge

Nymex crude oil futures prices have made a solid rebound this week, to suggest a near-term market bottom is in place. The geopolitical tension was ratcheted up a notch or two Thursday, which is also bullish for crude oil.

3. 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!