This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight:Futures, published on Wednesday, August 10, 2016.
There is a trade opportunity based on a M.E.T breakout in the Natural Gas futures market. The MACD and Stochastic indicators are bearish. Trend Seeker is Down, switching today, making this a Strong 1 Trade Strategy as well.
Sell the October 2016 Natural Gas contract at 2.630 using a limit order, GTC.
The entry is a pull back to the 7/21/16 low. Initial Margin = $2,420 Maintenance Margin = $2,200
Stop loss: Place buy stop on 2.710, above the 7/21/16 high, GTC. (Risk: $800)
Target: Place buy limit on 2.450, near a potential support level and the 200-day Moving Average, GTC. (Profit: $1,800)
October 2016 Natural Gas Chart
You may trade the mini Natural contract with an Initial Margin of $605 and Maintenance Margin of $550. The risk would be $400 and the profit would be $900 based on the same prices above.
Contact your Daniels Trading broker by phone or email to place this trade.
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.
This material is conveyed as a solicitation for entering into a derivatives transaction.