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Tuesday 28 June 2016

Hammer on wheat and corn

Hammer on wheat and corn, triggered. 

After I entered, price went against me.  Am I worry?  The answer is "no".  As I know what I am doing.  I follow my rule. 

1) I trade what I see.
2) I already preset my stop loss inside the trading platform.

This is exactly what I always said -
  • Trade what you see and not what you think   
  • Before you enter an order, you need to have a specific reason.  Listen to someone or because others are buying...then forget it
  • Before you enter that trade ask yourself another question - where is my stop loss.  And make sure you follow this rule.  When it hit your stop loss, cut without hesitation. 
Some people may ask me, what about the profit portion.  Why I did not mention anything about this?  My answer is depend on your personal appetite.  For me, I shall let profit run.  I will only take profit when there is a sell signal for this case.  This is what I called "your stop loss is controllable but your profit is unlimited".     

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