Tag : commodities

Why Is Chart Structure Important ?
Why Is Chart Structure Important ?

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…

Limit Up/Down Trading Rule—Look At Corn
Limit Up/Down Trading Rule—Look At Corn

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…

Do You Understand Over Trading ? Dangerous Markets
Do You Understand Over Trading ? Dangerous Markets

TRADING THEORY–– If you follow this rule you will have a chance of being successful over the course of time, if you don’t follow this rule you will be sure to lose your money quickly. This rule is simple Do Not OVERTRADE EVER for this is an easy way to lose all your capital quickly. My definition of over trading…

Interesting Trading Rule
Interesting Trading 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…

Why Are Consolidations Important ?
Why Are Consolidations Important ?

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…

Looking To Buy Hogs !
Looking To Buy Hogs !

Hog Futures—Hog futures in the February contract settled lower for the 3rd consecutive session down another 65 points at 69.12 or 0.93% dropping  over 300 points in the last 3 trading sessions due to overbought conditions in my opinion. At the current time I’m not involved, but if you have been following my blogs you understand that I think hog…

What Is Your Exit Plan ?
What Is Your Exit Plan ?

  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 loss…

When Is A Trend Established ?
When Is A Trend Established ?

When Should You Enter Into A Trade? I have been asked this questions on multiple times over the course of my 25 year trading career as I try to find the trend before entering into a bullish or bearish position as my rule states. I like to buy or sell a commodity when prices hit a 4 week high or…

What Is The RSI Oscillator ?
What Is The RSI Oscillator ?

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…

Trading Theory–When Is It Time To Buy ?
Trading Theory–When Is It Time To Buy ?

When Should You Enter Into A Trade? I have been asked this questions on multiple times over the course of my 25 year trading career as I try to find the trend before entering into a bullish or bearish position as my rule states. I like to buy or sell a commodity when prices hit a 4 week high or…