This is a sample entry from Brian Cullen’s email newsletter, The Cullen Outlook, published on August 06, 2014.
October LIVE CATTLE:
I am looking at a possible set-up that we have seen recently. A 2 day sell-off followed by a few days of consolidation. When this happened last in mid-July it was followed by a strong move to 160.00 I cannot say that this will happen again but if we break above 156.00, I would like to get involved.
Side note: The 154.50 level may be a great spot to have a 2 lot STOP order working if we get filled. If we do break lower and our stop does get hit, I may entertain getting short at that point. Stay tuned…
BUYING at 156.00 on a STOP order (day order) …last traded 155.45
- Risk will be the 154.50 level …($600.00)
- OBJ will be the 163.00 level …$2,800.00
(short term OBJ will be the 160.00 level …$1,600.00)
*** I will be looking to add an additional mini contract if we break the 98.20 – 98.00 level ***
Initial margin per contract is $1,320.00
Have a look:
It may not be possible to limit losses to the exact loss limit depending upon market conditions and the possibility of limit moves.
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STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
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