But, it does not matter if you are trading commodities or stocks or forex, as long as you trade with the trend and read the tape correctly and follow the laws of money management and risk control.
In short, follow your system faithfully without getting emotional.
The main aim of this post is to show the price pattern and the thought behind each trade.
1. LIVE CATTLE
Previously, i had shorted it at 103 and was stopped out at 106.
The reason I had shorted was that the trend was down.
After being stopped out, the prices went on higher.
I waited for the price to pause and retrace so that I can enter on the long side.
Why? Because now the market is trending up. All the three moving averages are sloping upwards.
I bought the contract at 113.
Currently, we have $200 profit.
Let us see how this trade goes.
2. E-MINI S&P
I had shorted two contracts at 1296 because the trend was going down and the price went below the support level. Also, the price went below the 1300 level which was a "round number". Any prices which end in "00" are major crossing points. Example: Dow 10,000
I purchased one contract at around 1276 for a profit of $1000.
I am now letting the profits run for the second contract. As of now, it has $1637 gain.
Two things:
Trend is our friend
Let our profits run.
3. WHEAT
I had shorted at 808.75 because the overall trend was down.
As of now, we have a gain of $7,387.
But, we have to let the profits run.
It is natural for us to to feel tempted to take profits.
We should not worry about the profits while we are in a trade. Why? Because it clouds the judgement. Rather, we should worry about our risk and check if every act we do is according to our trading plan.
4. SILVER
I had shorted silver at 35.19 because the trend was down.
It tried to go up again, but it failed miserably. It could not even cross the previous high.
Also, it crossed below the support level (shown by the red horizontal line) and also below the 35 "round number".
Currently, we have $1600 gain.
We will follow the trend and let the profits run.
5. SOYABEAN
I had shorted two contracts at 1336.
Why? Because the trend was down and also the price went below the "round number" of 1350.
I covered back one contract at around 1316 for profit of $1000.
I am letting the profits run for the second contract.
Currently, we have a realised profit of $1000 and a running profit of $1287
Let us wait and let the profits run.
6. CORN
I took a new position.
The chart of Corn was looking bearish and so i shorted it at 653.50.
Why? It was making lower lows.It went below the 700 "round number".
Currently, we have a loss of $175.
No need to worry. As long as the loss is below 2 percent of our total capital, we do not have to worry.
Just put a stop loss trade and RELAX and wait for the trade to work out or get stopped out!
