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Trader's Tip
Don't trade with scared money. Rule number one - Don't run out of money. Rule number two - See rule number one.
- Chris Morse |
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Special Message from Our Author
Today's Featured Article
Trend following has long been a preferred method of trading favored by seasoned commodities traders. Many traders are fully aware that longer-term trends take place in the commodities markets. The question that most traders need to ask themselves is how to take advantage of the longer-term trends.
Trend trading is far different from day trading in many respects. First of all a trend trade (position trading) can last days, weeks or months. On the other hand, a day trade may last seconds, minutes or hours. Trend followers are looking for big moves of $5,000, $10,000 or even $50,000 on a single trade. A day trader is looking to capture only a couple of ticks or the swing trade for the day. Trend followers may only take a trade or two in a month for a particular market. Day traders can make many trades throughout the trading day every day.
To be a successful trend follower one must possess several traits. When you are in a big move you need to let the trade run. Cut your losses if you are in a trade that is going against you. Don't be afraid to take multiple losing trades in a row. It is extremely important to not second guess or cherry pick trades.
With trend following it is essential to follow a robust trading strategy. One trend trading strategy favored by many traders I work with is Trade Think. Below you can see several trends that are happening right now across the commodities markets.
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Long Trades
Euro Currency
Currently Trade Think MT (medium-term) is shown to be long the Euro Currency futures contract. Our system signaled to go long (buy) the Euro on 5/20/2009 at 1.3704. Please see the chart below:
 If you cannot view the Euro Currency chart, go here.
As you can see Trade Think MT went long (bought) the Euro and is currently long with an open profit of $12,162.50 per contract.
Gold
Currently Trade Think MT (medium-term) is shown to be long the Gold futures contract. Think MT signaled to go long (buy) Gold on 9/2/2009 at 974.30. Please see the chart below:
 If you cannot view the Gold chart, go here.
As you can see Trade Think MT went long (bought) Gold and is currently long with an open profit of $3,060 per contract.
Go here to receive complimentary trade signals for gold.
Silver
Currently Trade Think MT is shown to be long the Silver futures contract. Our system signaled to go long (buy) Silver on 9/2/2009 at 1522. Please see the chart below:
 If you cannot view the Silver chart,
go here.
As you can see Trade Think MT went long (bought) Silver and is currently long with an open profit of $8,300 per contract.
Five-Year Notes
Currently Trade Think MT is shown to be long the Five-Year Notes
futures contract. Our system signaled to go long (buy) the Five Year on 8/19/2009 at 115. Please see the chart below:
 If you cannot view the Five-Year Notes chart,
go here.
As you can see Trade Think MT went long (bought) Five-Year Notes and is currently long with an open profit of $130 per contract.
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Short Trades
Dollar Index
Currently Trade Think MT is shown to be short the Dollar Index futures contract. Our system signaled to go short (sell) the Dollar Index on 7/15/2009 at 79.82. Please see the chart below:
 If you cannot view the Dollar Index chart,
go here.
As you can see Trade Think MT went short (sold) the Dollar Index and is currently short with an open profit of $2,820 per contract.
Go here to receive complimentary trade signals for markets like the Dollar Index.
Feeder Cattle
Currently Trade Think MT is shown to be short the Feeder Cattle futures contract. Our system signaled to go short (sell) Feeder Cattle on 7/15/2009 at 97.05. Please see the chart below:
 If you cannot view the Feeder Cattle chart,
go here.
As you can see Trade Think MT went short (sold) the Feeder Cattle and is currently short with an open profit of $175 per contract.
From the diversified selection of markets above you can clearly see that there are some great trading opportunities when using a longer-term trend following approach. Trend following works across all major commodities market sectors. If there is a trend a good trading strategy will catch it. The rest is up to you.
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About the Author
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Chris Morse is the Developer of the Trade Think trading system. He has been involved in the development of trading strategies for nearly ten years. Mr. Morse developed a very robust system, which is now in private use at one of the largest FCM's and has earned sizable returns for the last 3 years. Mr. Morse now focuses his time exclusively on developing and managing his systems. Chris works directly with all Trade Think clients.
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Special Message from Our Author
Complimentary Evaluation of Trade Think Trade Signals!
TradeThink's proprietary trading algorithm generates precise entry, exit, money management and trailing stop signals for nearly every major commodities market move with uncanny precision for you. Our Trading signals show traders when and where to enter and exit each trade. The signals are 100% automated and easy to view. Get a Complimentary Evaluation.
Disclosure: Commodity trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell commodity interests.
Notice: Returns are hypothetical. Hypothetical or simulated performance returns have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since trades have not actually been executed, the results may have under or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight, no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. |
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