New position taken in feeder cattle
| Date | Future | Qty | Position | Price | Exit |
| 15-Jan | FCH14 | 7 | long | 168 | 170.9 |
gross profit before commission - $1,450.00 x 7 = $10,150.00
This trade FCH14 was based upon a momentum "putsch" that I had spotted by large fund speculators and so I joined in the band-wagon following in their wake and i exited the trade rapidly as small speculators started to pile in. The rationale for this trade is to follow in the footsteps of the Goliaths and then to get out fast as they pull out of the momentum drive. I added trailing stops overnight and closed my stops on opening market session. This is a hard manner to trade because it requires focus and discipline to maintain mental stops to quit when the mental signal is triggered. trading on mental stops is not to be advised. another combination of this trade would have been to take a put option to offset as a contingency, but i left this trade as an open run based upon experience of watching how fund managers buy big lots and push and burn a market. I just got out in the nick of time too.
The meats are always volatile markets and volatility always presents price opportunity for the experienced trader and dangerous whip-saws for the inexperienced trader.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.