The grains started dropping last Monday along with the stock markets. Coincidence or connected? I don’t know, but I do know that it’s a fact of trading that sometimes the market goes the opposite direction of what you think. That’s why I stress using stops and buying opposing options. You can protect your profits this way and still be wildy successful even with some unsatisfactory trades. With an opposing option, you can still be in the trade if you get stopped out on a contract when there is a reversal of the markets. Of course the profit will be somewhat lower if you are right because you have to cover any loss on the option.

The grains have been trading pretty high. They broke through some strong resistance last week, which should have been an indication of a drop, and they do have long way to drop if they continue down. The grains moved up today, as we can expect with a sharp drop, so we are looking at a the potential of at least short rally in the near term.

I’ll know more Friday.

grains,trading,commodities,futures,investing,finance
Grain Commodity Futures Trading, Grain Commodity Futures Market Predictions

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