Fishhead (here's a grain trade for you)

SSI · Mar 16, 2005

Corn/Wheat spread, long 2 July corn at 2.35/short 2 July wheat at 3.71... legged in today at $1.36, need it to get closer ($100 per cent that it moves). will monitor and get out at $1.55, so risk is $1900.. looking for spread to close -- down to $1.00... so its almost a 2 to 1 trade, will adjust stop lower -- if it goes in my favor..

too bad many guys on here dont know about trading the commodity markets, it can be done with small amounts of money (compared to stocks).. my favorite is the emini sp... play the markets in the day and the sports at night..

Journeyman · Mar 16, 2005

i AGREE SSI, IF MORE GUYS REALIZED HOW INTRIGUING COMMODITY TRADING WAS THEY WOULD BE IN IT!

STILL WAITING FOR THE NEXT BIG COFFEE MOVE PERSONALLY.

SSI · Mar 16, 2005

J, do you trade commodities, if so where at.. my broker is in Calif but i trade through rjobrien clearing.. i prefer a real broker with commodities (unlike stocks in which i trade online), too easy for me to make a mistake... a mistake can kill you, if i am in overnight -- my guys leave me the night desk number...

do you trade the emini, it is my favorite to trade.. or maybe you just buy some options,, really good money in selling those things..

Fishhead · Mar 16, 2005

Thanks for the thoughts SSI

Will call my brother tonight and relay to him.

Thanks,
---FISH---

SSI · Mar 16, 2005

Jman, if you get time, answer my ?????

in the meantime, watch this trade for tomorrow, ill be looking to buy the emini sp somwhere under 1185.00.. if it doesnt trade down that low, then i wont be in.. however im looking to be a buyer tomorrow somwhere under 1185.. im showing support just over 1180.00 area.. $50 per pt, ill be risking somewhere around 20 initially ($1000) on the trade and looking for a nice bounce, but as always ill be looking to move that stop higher asap.. i believe in a trailing stop and moving to a free trade posistion asap... do you know anything at all about trading the emini sp, the big boys trade the sp but thats too rich for my blood ($250 per pt) i may trade 2-3 emin's at a time however...

Buying 1 June emini 1184.50 tomorrow, stoploss at 1164.50.. keep an eye on this fish and jman..

Kornholio · Mar 16, 2005

commodities are too volatile for most gamblers.

SSI · Mar 16, 2005

the action can definately be very volatile..

Here is my alltime favorite strategy, im a big believer in playing supp and res points (chart reading here guys).. buy an uptrend market on a pullback and risk under support.. always trade with a stoploss guys, too risky not too...

Let say the sp market is in an uptrend (thats is debateable btw), we had a pullback and have traded down to supp (at or near 1180).. we buy and set a defined risk amount on the trade, buy at 1184.50 - stoploss in at 1164.50.. now the idea is to enter and survive the downward move, once we get the desired bounce and the trade starts moving in our favor, make a note of todays high btw. i believe in staying in trades and "LET THE MARKET" take you out..if we move back over 1200.00 id then move my stoploss from 1164.50 up to 1188. which guarantees me a profit and keeps me in the trade...

i love this stuff, cant believe more guys here dont..

DarrylParsons · Mar 16, 2005

Commission and slippage kills 80% of small stakes day traders. If you don't have a very large bankroll or some good personal contacts in the industry, I'd stick to just taking a few small long-term positions and just riding them out.

SSI · Mar 16, 2005

no slippage in the very liquid markets darryl, i seem to always get my price in the grains and emini, OJ/CT/PB and some of those (boy there is major slippage). trade the emini online for small comm (under $10rt) i pay around $20rt and have broker do it..

I dont consider myself a daytrade, short term trade is better... i like to stay in and ride the winners, dump the losers asap.. i dont like to go overnight behind in a trade...

most here do not know anything about this, but if i could show them, they would love it..

DarrylParsons · Mar 16, 2005

I agree SSI, just pointing out the dangers...you seem to know what you're doing but there's an element of "don't try this at home" in it. GL in any case. :103631605

SSI · Mar 16, 2005

darryl your so right, i wrote a commidites newsletter a few years ago and i had to be very specific with entry's and exits.. ive got several yrs in this and for the most part love it...

got to set those stoplosses in there and set up at least a 2 for 1 trade initially and hope you get a winner,, lots of guys have a hard time staying in winning trades, i have always found this unbelievable.. they will stay with losers and hope they turn but run out of winners,, lots of ways to trade, buying options for insurance is a good strategy, i like to sell 2 OTM options and buy 1 in the money. most of the time pocketing a little..

for me selling options is the most dangerouns and should not be done by newbies..