Corn - H&S target reached. Watching for LONG sign

Corn is testing the double supports after a nice higher high higher low

One good trade - when tthere is good set up with reasonable P&L, you enter

One good trade doesn't mean every trade is a winning trade. 
One good trade - when there is good set up with reasonable P&L, you enter. 
If you see opportunity soon after one good trade, immediately re-enter again.
Remember I mentioned those three in my 30-June posted? (http://achua138.blogspot.sg/2016/06/one-good-trade.html)

Once again, wheat has a hammers and triggered on Thursday.
Corn has an inverted hammer on Thursday.  Some people will enter the trade the next day when it trigger.  Some people will wait for next day confirmation candle plus the follow day trigger.  So depend on individual. 

One good trade

Last night, wheat hit my stop loss while I was asleep.  Loss 52 ticks.  1 ticks = $12.50 

Although I loss the fight but I still consider this as "One Good Trade".  People may ask me - am I crazy?

Allow me to quote you this person, by a true professional trader Mike Bellafiore.  He is the co-founder of SMB Capital, a proprietary trading firm in New York City.  Few years back I met him in Singapore.  He wrote this great book called "One Good Trade".  Inside the book, he shared the stories of traders who have excelled and failed and why, many trained by Mike, with an essential trading principle wrapped inside. 

Let me quote some of the sentences that written inside his book.  

One good trade doesn't mean every trade is a winning trade.  Good set up with reasonable P&L, pull the trigger that consider as a good trade.  If you see opportunity soon after one good trade, immediately re-enter again.  So there is no such thing/words such as "Damn, I cut too early", "I was scared to re-enter as I taught it would trade even lower"......... What in fact a traders look at is good set up with excellent risk and rewards, then he execute. 

I quote: Losses is something which you cannot avoid in trading/investing.  The question is here how much each time you win versus how much each time you loss.  Whenever someone ask me can I buy this XYZ counter, my first question to him/her is "What is the reason for you buying that XYZ stock?"  Secondly - "Where is your stop loss?"  and thirdly "What is the ratio of risk and reward?" 

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".