Tag : commodities

Limit Up/Limit Down Rule—Look At Cattle
Limit Up/Limit Down Rule—Look At Cattle

TRADING THEORY—This is an outstanding rule to understand as when a market trades limit down such as what cotton did in today’s trading session that tells you there is a high probability that prices will open lower on the open in tomorrow’s trading session as buying limit down is a fool’s game. Remember when a market closes limit down there…

Here Is My Consolidation Theory—Look At Cattle
Here Is My Consolidation Theory—Look At Cattle

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…

Coronavirus Panic Sends 10 Year Note Higher
Coronavirus Panic Sends 10 Year Note Higher

10 Year Note Futures—The 10 year note in the March contract is trading higher for the 3rd consecutive session up another 16 ticks at 130 /25 as there is sheer panic of the Coronavirus spreading throughout the world sending the stock market down nearly 500 points as money flows are going into the bond sector at this time. I have…

My Risk Management Rule
My Risk Management 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…

Never Add To A Losing Trade !
Never Add To A Losing Trade !

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…

10 Year Note Higher On Virus Fears
10 Year Note Higher On Virus Fears

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My Limit Up/Limit Down Rule
My Limit Up/Limit Down Rule

TRADING THEORY—This is an outstanding rule to understand as when a market trades limit down such as what cotton did in today’s trading session that tells you there is a high probability that prices will open lower on the open in tomorrow’s trading session as buying limit down is a fool’s game. Remember when a market closes limit down there…

Here Is My 10 Year Note Trade
Here Is My 10 Year Note Trade

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Is The RSI Oscillator Important To Understand ?
Is The RSI Oscillator Important To Understand ?

TRADING THEORY —-What Is The RSI Oscillator ? —The RSI oscillator ranges from 0 to 100 and when a commodity is deemed to be at overbought levels when the RSI approaches the 70 level and beyond meaning if the oscillator has an overbought condition of 92 that is higher and even more of an overbought condition then the 70 level…

When Should You Exit A Trade ?
When Should You Exit A Trade ?

    WHEN IS IT TIME TO SELL ? In my opinion if you are long a futures contract and you have lost 2% of your account balance on that trade exit and move on and look at other trends that are beginning as the theory states. Generally speaking if you long a futures contract I would place the stop…