This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Wednesday, August 17, 2016.
There is a trade opportunity based on a potential Trend Line breakout in the Chicago Wheat futures market. The MACD and Stochastic indicators are bullish. Trend Seeker is Down, but anticipating a change in trend on the breakout.
Buy the December 2016 Chicago Wheat contract on 446’0 using a stop order, GTC.
The entry is a break of the 8/15/16 high. Initial Margin = $1,540 Maintenance Margin = $1,400
Stop loss: Place sell stop at 425’0, below the twelve month contract low (8/12/16), GTC. (Risk: $1,050)
Target: Place sell limit at 490’0, near a potential resistance level, GTC. (Profit: $2,200)
December 2016 Chicago Wheat Chart
You may trade the mini Chicago Wheat contract with an Initial Margin of $308 and Maintenance Margin of $280. The risk would be $210 and the profit would be $440 based on the same prices above.
Contact your Daniels Trading broker by phone or email to place this trade.
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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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