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central ontario | Hello mikado
I should not be giving answers to you after the total misread on lean hogs way back,you could say i was off by a country mile and then sum.The fundamentals seemed to be overwhelmingly bearish yet the bottom was in place.As Pete has mentioned before ,a bear market that does not react to bearish news is a bear no more.
If you are assessing a possible trade in a commodity you should kind of know where your stops need to be ahead of time,not always easy though.There are so many answers that could be correct for say stop loss orders,yet like you mention the cattle trade needed deep pockets,the trade was in actual fact put on with too much risk up front,and needed to wait for the correction.
If you are asking your broker for trades ,entry and stops then you need to do more homework on the proposed trade,to me it does not mater what commodity it is they all move,some way more then others.
There are many things that look like a possible,T Bonds,gold,silver,currencies,cotton,cocoa,corn and soy,some of these possible trades have higher risks then others and need to say be bought on a pullback if a long position is the preferred trade like on gold or silver.
It has been said by some specs they do not trade anything what can walk,like livestock,some commodities trend better then others,ag. can be difficult in, did it rain or not warm or cold,supply issues,and a weather market is difficult unless you are in it at the start,you could be right yet get chopped up in the volatility.
No one can give an honest 1 answer fits all to such a complicated question,is the trade spec or hedge,these two items have totally different answers, just have a predetermined stop that is using some sort of tech nos.
Good Luck mikado
Just some ramblings to what seems like a valid question on this quiet Sunday morning. | |
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How do you know...chart questions
