jpartner - 10/2/2015 14:40



With all due respect long, it has nothing to do with deeper pockets. This is a farmer forum for the most part, and farmers are relentlessly kicked around by the markets so we are desensitized to risk. We have this belief that is will always come back and if I use no stop, all I gotta do is ride it long enough, meet the margin calls and I am golden. IMHO, outside of a few here, most here have no trade frame. We think its going up or down and we take action. We have no idea what our risk is, let alone what a realistic reward is for the frame. We never want to be wrong so we don't use a stop. Then we add to our losing postition at lower prices because it's going higher. How many lives were destroyed by that mentality, in crude, corn, or even cattle? Countless. Deep pockets may give you staying power but likely a lack of discipline too. IMHO, the worse thing that can happen is be deep in the red and have it comeback a winner. It reinforces bad habits and someday...crude happens.
There are some incredibly wealthy people that trade NG with a 1.5 cent stop. And they have won't even think about the trade without at least a 6or 7 to 1 reward to risk ratio. They have unimaginable wealth. It has nothing to do with deep pockets...
Take Care