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Central Missouri | If you would re-own where would you get out? If you are wrong where would you put your stops?
If, and that is a big IF, I was to re-own grains i would do it in soy oil today because of the macd cross and the defined loss perameters which would be sell stops under the recent lows. To put on a good position imo you have to be on the right side of the market and when trying to catch a falling knife like the current grain market has been time is more important than price because if time is right your stops wont get hit and thus price doesnt really matter but if time is wrong it doesnt matter what price your stops are gonna get hit no matter what.
Trading in commodities without stops is like having put grain in the bin this past year unsold.
One of the big problems people have when they get in a position in the commodity market is they dont have an exit strategy.
So if you enter a position put stop losses in immediately because you may be wrong, also have a strategy that will get you out. It can be a combination of alot of things: assuming one went long,
1. Macd cross back lower
2. Rsi gets to a certain point
3. You can move your stops up under the market as price moves up
4. Rsi divergence
5. Median line rules fulfilled
6. Macd divergence
There are alot more methods but to invest/trade commodities without a plan and without rules to guide is what causes most to lose money in the market. Jmo | |
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Sell on good basis and reown
