Tag: Stops

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

We’ve asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Gold Futures

Gold futures are right near 3 year lows going out this Friday afternoon at 1,200 an ounce after falling $40 in yesterday’s trade due to the fact that the Federal Reserve announced the beginning of its tapering program of bond purchases which is construed as negative towards goal prices as the money flow continues in the S&P 500 and out of the precious metals as investors see no reason to be long the gold market at this time. Gold futures have dropped Continue reading "Weekly Futures Recap With Mike Seery" →

Weekly Futures Recap w/Mike Seery

Posted on by The INO.com Team

We’ve asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Cotton Futures-- Cotton futures in New York this week continued their bullish trend settling last Friday at 86.63 going out this Friday at 87.47 about 85 points higher hitting a 6 week high and still trading above its 20 and 100 day moving average which I consider a bullish technical indicator. I have been recommending buying cotton futures in the December contract last Friday when it broke out above 85.80 but cotton is very large contract with heavy risk so trade only 1 contract while placing a stop below the 10 day low at 84.07 risking around $800 per contract at the time if you are wrong and the trend changes to the downside. The chart structure in cotton is excellent at this point which has allowed you to place a tight stop if you’re looking to get involved into this market, however traders are keeping an eye on next week’s crop report which definitely will have an impact on short-term price direction as I still do believe cotton prices will fill that gap at 89 in the coming weeks possibly if next week’s report is very bullish. TREND: HIGHER –CHART STRUCTURE: EXCELLENT Continue reading "Weekly Futures Recap w/Mike Seery" →

Stops…Damned If You Do, Destroyed If You Don't!

Posted on by admin

By: Leslie Burton

Trading in commodity futures can be a very challenging plight and the risk plan may mean the difference between a long-term trading life and a short-term trading life. Of course, there are traders that simply do not believe in stops and swear that the other brokers and/or traders are gunning for their stops.

First off, a stop may be a protective stop to offset a long or short position to limit the losses if the market moves against you. You may also use a stop to enter a market as channel breakout traders may want to buy and go long if a market breaks through support or sell a market if the market breaks through support. Buy stops are placed above the current market price and Sell stops are placed below the current market price. A stop order turns into a market order when your price is elected. In a liquid market, it may be at or close to your price. If you are in an illiquid market, the stop may be elected, but your fill price may be further away from your price depending on the market activity. A “static stop” remains fixed on a position until executed. A trader must remember, if offsetting the trade manually, to cancel the stop. A “trailing stop” may be used to lock in and protect profits as well. It may be set to follow your position by a certain number of points or ticks to move the stop up or down with the market. This may be done manually or by a bracket automatically. There may be conditions such as a limit moves whereby the market may be moving too fast and may pass through your stop price without triggering in creating more of a potential loss than anticipated. The term "limit up" and /or "limit down" is the amount of points, ticks or cents that a market may move within one session. The Daily Limits are set by the exchange to control the volatility until the market returns to a more stable state. Continue reading "Stops…Damned If You Do, Destroyed If You Don't!" →

Stops That Make Sense

Posted on by The INO.com Team

By: Jonathan Williams

Stops are a very important component to trading. In my opinion, the most destructive mistake when trading is NOT placing a stop. In this article, we will review types of stops, placement techniques, and at the conclusion, you will understand how to implement stops no matter your trading style. Not only will we cover the basics, but we may be able to troubleshoot existing trader’s issues with stops. If you are being stopped out too frequently, you might want to keep reading.

Stop orders do not necessarily limit your loss to the stop price because stop orders, if the price is hit, become market orders and, depending on market conditions, the actual fill price can be different from the stop price. If a market reached its daily price fluctuation limit, a “limit move”, it may be possible to execute a stop loss order. Continue reading "Stops That Make Sense" →

Trade with a Plan – Using a Stop Loss

Posted on by The INO.com Team

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple and straight-to-the-point.

If you like this article, Larry’s also agreed to give you free access to his Double Stop trading technique.

Today he’s going to talk about how to include stop orders in your trading plan.

In my opinion, every trade you consider should be laid out ahead of time with a roadmap. A complete map should have an “off ramp” or a place where it makes sense to enter the market. It should also have exits for your destination (profits) as well as off ramps for emergency exits. This part of your plan will likely include stop orders. Continue reading "Trade with a Plan – Using a Stop Loss" →