Soybeans is following the path that we outlined when we analyzed the trade. We have reached the preserve mode value of 1077 4/8 and it has actually gone down to 1072 now. Since we are in preserve mode, we need to protect our profits. Based on what type of trader you are….the next actions in the trading plan is different. Conservative traders will go down to a lower time frame and manage the trade with a tight stop. The aggressive trader is going to tighten the stop on the same time frame that the trade was taken and target the next major support.
For this trade, we are going to take an aggressive approach. Therefore, we are going to use the Tenkan Sen with a buffer as a stop. The stop will be 1082. We entered at 1087 2/8 so this locks in 5 2/8 pts no matter what happens. The initial risk was 2 3/8. Therefore, we are locking in close to 3:1 reward/risk no matter what happens. This is what we called a free trade where you will make money no matter what happens from this point on. The achieve consistent profits in YOUR business is to fill up your account with “free trades”. Trades that will keep on paying you more and more as the trend continues. If they reverse, you have nothing to lose! This is like collecting a salary in the business world.
Here is the current chart in Tradestation. Notice, we have selected a target of 1066 1/8 now.
EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.