December LEAN HOGS:
When you write a newsletter, your missteps are on display for all to see…
(and I love it!)
That said we have all been where I am about to explain.
Sometimes you move your stops TOO CLOSE, you get stopped out… and the market THEN goes your way… (thats the worst!)
Sometimes you DONT move your stop and give the market room to breathe and you give back some/all of your profits at the time!
Below, I did the latter.
We SOLD the HOGS on Monday 10/23 at 65.00 (refer to that email)
On Friday 10/27 intraday, we had $460.00 in profits at 63.85 and I elected to move the stop down to just over the days high to 65.25 (refer to that email)
Looking at the chart, I had visions of a stronger move lower but wanted to hang in the weeds from a “safe” distance and not put the stop too close.
Yesterday, on a Monday morning, we bounced and traded higher throughout the day led by a very strong fundamental move in the Cattle markets, taking the Hog market with it for a ride.
We ended up getting stopped out at the 65.25 price for a small loss of $100.00
Stop movement can be tricky and there are no rules to how the game is played. It can be one of the hardest things you do when trading the markets. The best you can do is to remain consistent in your approach.
Have a look at the bounce in the HOG market…
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