Lean hog futures had a breakout setup for today. Meats are a market sector where entry signals often occur relatively late in the session, which can give you more time to take a trade.
Trading Tips
Stops and Liquidity
Stop orders can be used in futures trading as a great way to help manage risk and protect losses, lock in profits, or enter the market on a breakout. The downside to using stop orders, however, is slippage.
If I Enter on a Limit, Can I Place My Protective Stop at the Same Time?
A common question that new traders often ask is if it is acceptable to place a protective stop while simultaneously placing an order to enter on a limit. The trader who typically asks this question is primarily concerned with having a predefined risk parameter for his limit order. The answer to this question is…
Seasonal Futures Spreads
Although I spend most of my day managing client accounts, I also dedicate time to speaking with people who are interested in trading futures, yet have never traded before or are hesitant for one reason or another to dive into the markets. Throughout these conversations, I have noted that one of the biggest obstacles keeping potential and former traders from diving into the markets is a lack of understanding on market fundamentals.
Stops…Damned If You Do, Destroyed If You Don’t!
Trading in commodity futures can be a very challenging plight and the risk plan may mean the difference between a long-term trading life and a short-term trading life. Of course, there are traders that simply do not believe in stops and swear that the other brokers and/or traders are gunning for their stops.
Stopped Out Of A Position? Bad Luck, Next Job.
On the rugby field, if a teammate makes an error, such as “losing the ball forward,” we tell him immediately after “bad luck, next job.” It reminds him to clear his mind of the error and to ready himself for the next potential play. By increasing his awareness, he may be in a better position and better focused to make that next play.
The Bullish Hammer: Would You Know It If You Saw It?
Bullish Hammers, as the name suggests, is a signal on a chart that alerts you to be on the lookout for a market that is setting up to reverse and trade higher! I’ve highlighted in yellow this exciting candlestick set up in the chart below.
2014/15 Hedge Ideas Ahead of Monday’s WASDE Report
Farmers across the country are looking for ideas for protecting their 2014/15 crop ahead of Monday’s WASDE report. We’re at price levels we haven’t seen since 2010! With 2013/14 prices being what they are, along with the outlook for a bumper crop, protecting your future crop is more important than ever. I’ve put together some… Read more.
Do Gaps Matter?
Many traders pay attention to price gaps on a chart. Are gaps significant and should they be part of a trader’s strategy? Or are gaps merely a gap in price just because there was a gap in time between recorded trades at the exchange?
Using Mini-Contracts!
Investing in any financial instrument includes the risk of losing capital. Some investment strategies have a higher degree of risk than others, which also implies a higher potential for reward. It is important for the individual trader or investor to understand his or her risk tolerance with respect to the trading and investment vehicles they… Read more.