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South Central Iowa | You're right that a spread is safer. But you are more advanced than a lot of farmers are in your knowledge of the market. You know some things about charts and indicators, you study s&d, keep up on news, and think through your opinions. I think it is important for farmers who don't know as much about markets to understand the need to stay away from old to new crop spreads. I know it looks tempting to them often because you see spreads of a dollar sometimes from the August to the November. But being that it is two separate crops, if you are not on the ball and knowledgeable about where things could go and when to cut losses, it could burn pretty bad. So if you spread, stay in the same crop year, that is much safer. Likewise, I don't recommend my leg in and leg out strategy to farmers or people that don't pay careful attention to the market and have a good feel of things. That legging can burn someone too. I mention it to you IN555 because I think it is something you could consider doing if need be. It has proven good to me in capturing unexpected swings and allows me to short or buy at a new high or low while increasing my aggregate and allowing me to make some money off an opportunity. But if you don't feel very confident in your market knowledge, keep an open mind about where things can go, and can't watch every move every day; stay away from legging in and out and stay away from old new spreads (bull spread excepted). | |
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