Viewpoints of a Commodity Trader

[wsam29 10]

The message is within the message, I've read this book many times and still pick up on the true meaning of his message.

 

Along with the Mark Douglas and Jason Alan Jankovsky's, you'll get a fairly good idea of what these veterans are talking about.

 

The content is pretty much what Jesse Livermore did back in his trading days and that was almost 100 years ago. Nothing has changed other than the speed at which trades go through. Trader's will always think like traders.

[torero 10]

Since you're more seasoned grain trader than most of us here, how does one deal with limit-up and limit-down days? Is there another options to prevent from being locked out? I've read about it and i imagine if you're caught on the wrong side, must not be comfortable going home with your position locked in. Nice if you're in the right direction.

[wsam29 10]

Just be mindful of those days when the WSADE report gets released, then again the charts will speak to you when they are due.

 

I think the WASDE reports are due out on the second week each month.

 

Don't ask me which reports are more important than other, just watch how the tape/market reacts to the reports.

 

Also trading spreads will help minimize the volatility big time in those markets. The CBOT also has great information regarding trading spreads.

 

If you cannot sleep with an open position, close it out, since grains are 24 hours now, you are able to liquidate in the middle of the night to ease that curiosity. Then again, there are other issues regarding having those thoughts that I have experianced.

[torero 10]

So there are no more limit-up and downs?

[Guest KhurramNaik]

Have you read Jankovsky's "Trading Rules That Work?". There's a review in the latest SFO: SFO Magazine Official Journal for Personal Investing in Stocks, Futures and Options

[wsam29 10]

So there are no more limit-up and downs?

 

oh there are (lock limits) given the right market conditions and how many traders are on the wrong side.

 

if the "globex" session is trading at its upper limit range, once the pit opens and trades at the limit, the market locks up in the RTH and no trades will be executed on both pit or electronic.

 

the limits change from time to time currently they are, but don't hold me to it:

 

corn +/- 20 cents

wheat +/- 30 cents

beans +/- 50 cents (I think, this was the only market that did not lock limit last week or so)

 

best way to avoid those sleepless night either enter your trade as a spread or just get out before a report if you are scared.