January Soybeans Futures Trade

January Trading Report Part 4

New position taken in Soybeans

Date	Future	Qty	Position	Price	Exit
15-Jan	SH14	5	short	1285	1275

gross profit before commissions - $500.00 x 5 = $2,500.00

This time I initiated a short trade. Knowing that the soybeans markets can be really choppy I expected a rough ride down keeping my mental stops just above each day's previous high.

Usually I find that in analyzing technical data watching RSI MACD and all other kinds of indictators, that the signals they generate often lag behind the reality of the action. Example the days action could be hovering on the 50 day moving average and hen break 2 or 3 ticks down over a space of 5 minutes. that is the kind of critical moment when technicians will always lag behind the action for although technical charts may summarize the sum total of the market psychology of the past and the expectation of future prices, it does not explain the present where all thins can be and equally within 5 minutes prices can shoot for the moon or descend in a crash and burn. For the day trader this is where instinct comes in for he or she that reacts fastest has the greater chances of success than he or she that pauses. In this case I pulled out with a modest $500 gain on each contract because the last days price action was greater than the previous 3 days trading range. This for me in the heat of the action, just bearing in mind numbers and not even the charts, seeing that todays high and low represented a greater price action than the previous 3 days, was a clear signal that market option was now in a tussle between further downward pressure and upward momentum. so what does one do in the heat of the battle between the Goliaths?  Step aside and take your profits. Live to fight another trade!

The lesson - Trade the present; do not dwell too long upon the past nor dream the future.