Why I like to use STOPS & Support & Resistance Levels 7.12.2018
Ilan-Levy Mayer of Cannon Trading Company, Inc. - InsideFutures.com - Wed Jul 11, 3:26PM CDT

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Today's market actions on a few different levels lead me to writing this and sharing a few thoughts aboutwhy I personally believe a trader should use stops.*
A couple of events took place today:

The firstwere thelarge moves in the energy sector including the very popular crude oil contract.
Crude oil had a range of $4.24 from high to low. That translates to $4240 ofaloss if you were unlucky to buy the high and sell the low.....Not sure why the CME overnight margin for this market is still ONLY $3200 but if you traded futures before you can see where I am going with this. You could have had enough margin to carry long position overnight and find yourself in deficit if you (or the risk manager/your broker) did not take you out of the position in time.
The other meaningful event was that the CME had connection issuesacross many FCM's, and routing connections which lead to a situation where certain traders were not able to get out of a position via their trading software (I am proud to say that the majority of our clients had the ability to call us and get help via phone). Its not a good feeling to say the least, to feel that you are "stuck" in the market. However, in this specific case, if you had stops already working on the exchange, you at least had that level of protection.
The moral of the story? Learn to use stops each time you trade. You can get away 9 times (luck, deep pockets etc.) but all it takes is that one time where either your trading capital or luck runs out to destroy your trading account.
As always, we are here to assist and answer anyquestions via email, phone or chat!Call us @ 310-859-9572


*Note about stops:THEPLACEMENT OF CONTINGENT ORDERS BY YOU ORYOUR TRADING ADVISOR, SUCH AS A ''STOP-LOSS''OR ''STOP-LIMIT'' ORDER, WILL NOT NECESSARILY LIMITYOUR LOSSES TO THE INTENDED AMOUNTS, SINCE MARKETCONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCHORDERS.

Futures Trading Levels

07-12-2018


SP500 #ES_F

Aug. Crude Oil #CL-F

August Gold #GC_F

2808.42

77.39

1267.7

2798.08

75.83

1262.5

2786.42

73.15

1252.5

2776.08

71.59

1247.3

2764.42

68.91

1237.3

2754.08

67.35

1232.1

2742.42

64.67

1222.1


For a complete list of support and resistance levels for#ES_F,#NQ_F,#YM_F,#RTY_F,#XBT_F,#GC_F,#SI-F,#CL-F, #ZB_F, #6E_F,#ZC_F,#ZW_F,#ZS_F,#ZM_F,#NG_Fhttps://www.cannontrading.com

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.