Tag : commodities

Trading Theory
Trading Theory

This rule is extremely important and I witness it being abused constantly creating tremendous loses that are sometimes difficult to come back from. Never add to a losing position because if the position continues to go against you and now you have added even more contracts which are all losing money your account will suffer loses much more than 2%…

What Happened To The Commodity Markets ?
What Happened To The Commodity Markets ?

What Happened To The Commodity Markets ? The commodity markets were absolutely crushed this Thursday afternoon as some of these extreme losses I have not witnessed for quite some time as you are seeing 5% / 10% declines across the board. The Federal Reserve announced that they will start to raise interest rates next year as that sent the momentum…

What is a Rounding Bottom? Look At The Dollar Index
What is a Rounding Bottom? Look At The Dollar Index

What is a Rounding Bottom? A rounding bottom is a chart pattern used in technical analysis and is identified by a series of price movements that graphically form the shape of a “U”. Rounding bottoms are found at the end of extended downward trends and signify a reversal in long-term price movements. This pattern’s time frame can vary from several…

Trading Theory
Trading Theory

What Does Risk Management Mean To You? I generally tell people that the reason people lose money in commodities is not due to the fact that they are bad at predicting where prices are headed, however they are bad when it comes to losing trades and refusing to take a loss which results for heavy monetary losses that are difficult…

Do You Understand Old/New Crop ?
Do You Understand Old/New Crop ?

What’s the difference between old crop & new crop in the agricultural commodities? When analysts and traders talk about agricultural commodities such as soybeans & corn the one thing they generally mention is old crop versus new crop and that might confuse some beginners on what exactly is the difference. I will keep it simple because the only difference between…

My 2% Rule
My 2% Rule

What Does Risk Management Mean To You? I generally tell people that the reason people lose money in commodities is not due to the fact that they are bad at predicting where prices are headed, however they are bad when it comes to losing trades and refusing to take a loss which results for heavy monetary losses that are difficult…

Trading Theory
Trading Theory

How long does a meaningful consolidation has to last before you enter a trade ? In my opinion I always want to see a consolidation that lasts at least 8 or more weeks before I would consider entering. The reason that I want a longer consolidation is to try and avoid a bunch of false breakouts such as a 10…

Trading Theory
Trading Theory

This rule is extremely important and I witness it being abused constantly creating tremendous loses that are sometimes difficult to come back from. Never add to a losing position because if the position continues to go against you and now you have added even more contracts which are all losing money your account will suffer loses much more than 2%…

Should You Answer A Margin Call ?
Should You Answer A Margin Call ?

TRADING THEORY—Never answer a margin call because you are probably over trading and most likely the position is going against you and probably have lost much more than 2% on that trade. Never allow this to happen to you because you always want to have sufficient margin in your trading account just in case the exchange raises margin and that…

What Is Chart Structure ? Not The Corn Market
What Is Chart Structure ? Not The Corn Market

What do I mean when I talk about chart structure and why do I think it’s so important when deciding to enter or exit a trade? I define chart structure as a slow grinding up or down trend with low volatility and no chart gaps. Many of the great trends that develop have very good chart structure with many low…