Tag : commodities

2% Risk Management Rule
2% 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…

Trading Theory–When To Enter ? Look At Silver & Platinum
Trading Theory–When To Enter ? Look At Silver & Platinum

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…

When Do You Add To Your Winning Trade?
When Do You Add To Your Winning Trade?

When Do You Add To Your Winning Trade? This has always been a very interesting question because it can create a situation of going from rags to riches to riches to rags in a very short amount of time. Many times I see traders abuse pyramiding or adding to positions with utter lack of any type of money management system…

Trade With The Trend—Look At Silver 7 Cattle Charts
Trade With The Trend—Look At Silver 7 Cattle Charts

TRADING THEORY—Trade with the short term trend, as the saying goes in futures trading the trend is your friend but sometimes you will be a market that is trending higher and then has a false breakout to the upside and then suddenly sells off causing you a 2% loss on your equity and you say to yourself that was a…

What Do Moving Averages Tell You ?
What Do Moving Averages Tell You ?

How Can You Use Moving Averages To Your Advantage? A simple moving average is calculated by adding the closing price of a commodity such as crude oil for a number of time periods and then dividing this total by the number of time periods. Short-term averages respond quickly to changes in the price of the underlying commodity, while long-term averages…

My Consolidation Rule ! Look At Cattle
My Consolidation Rule ! 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…

Why Are Margin Calls Important ?
Why Are Margin Calls Important ?

TRADING THEORY––Never answer a margin call because you are probably overtrading, and most likely, the position is going against you and you 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 as that…

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…

Trading Theory–Limit Up/Limit Down Rule
Trading Theory–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…

Mike Seery’s Daily Commodity Comments For 7-6-20
Mike Seery’s Daily Commodity Comments For 7-6-20

S&P 500 Futures—The S&P 500 in the September contract is trading higher for the 5th consecutive session up another 53 points at 3,168 continuing its bullish momentum still riding the coattails of last week’s monthly unemployment number. At the current I’m not involved, but I do believe that all time highs will be tested once again as the Nasdaq-100 continues…