Perfect System for Commodity Trading
To rescue US economy, FOMC has cut interest rate from 6% to 0.25%, not much ammunition left. Japan which is the world’s 2nd biggest economy has suffered due to its strong yen. Even strong and stable Toyota has reported loss. China and Asia which have relied on US for most of their exports have started to show signs of weakness.
I say with confidence that 2009 will be a bad year for businesses, employees and global economy. We will see more cost cutting by firm in the form of retrenchments.
When people lose their jobs, they will spend conservatively. Some people may even have to sell stocks and property in order to raise cash for their daily expenses. Do you believe that in this kind of environment stock investments will do well?
Have you learned anything in 2009? If you have not, then learn that stock investment does not do well in all economy environment.
I think the current business cycle is moving downwards from the peak and we are still far from the bottom. I perceived that stock market is going to test its low and move down even much more in 2009.
I have since switched from stock investment to forex and commodity trading at the start of 2008. Here are some of my commodity trades.
14 trades were executed: 10 wins, 3 losses, 1 breakeven
Here are the trades on commodities from 1 Dec to 24 Dec:
1. On 23 Dec I closed my position at 10.41, profit is 28 ticks (US$280).
Original trade:
Shorted 1000 spot silver at 10.69
Stop level at 10.90
Target level at 10.08
2. On 23 Dec I closed my position at 39.33, profit is 33 ticks (US$66)
Original trade:
Shorted 2 lot supermini oil at 39.66
Stop level at 40.50
Target level at 38.72
3. On 19 Dec target level reached for silver. Close position at 11.12, 14 ticks profit (US$140).
Original trade:
Shorted 1000 spot silver at 10.91
Stop level at 11.12
Target level at 11.12
4. On 19 Dec I close my position at 10.97, profit is 10 ticks, US$99.65.
Original trade:
Shorted 1000 spot silver at 11.07
Stop level at 11.30
Target level at 10.87
5. On 17 Dec I close spot silver position at 11.44, profit is 25 ticks, US$250.
Original trade:
Bought 1000 spot silver at 11.19
Stop level at 10.79
Target level at 11.61
6. On 17 Dec target reached for silver. Profit is 49 ticks.
Original trade details:
Bought 1000 spot silver at 10.68
Stop level at 10.40
Target level at 11.17
Closed at 11.17 (Profit is 49 ticks, US$490)
7. On 16 Dec profit stop at 45.81 is triggered. Profit is 40 pips.
Original trade:
Bought 1 lot of supermini Oil at 45.41
Stop level at 43.70
Target level at 47.00
8. On 16 Dec oil trade triggered stop at 44.00. Loss is US$74.
Original trade:
I bought 1 lot of supermini Oil again at 45.41
Stop level at 43.70
Target level at 47.00
9. On 16 Dec oil trade stop triggered at breakeven
Original trade:
Open Long: 1 lot supermini Oil @ 44.67
Stop level: 44.67 (Shifted to breakeven)
Target level: 46.92
10. On 12 Dec gold trade triggered stop.
Original trade:
Open Long: 100 Spot Gold at 833.43
Stop level at 819.00
Target level at 846.38
11. On 10 Dec target level reached for oil
Original trade:
Open short: 1 Supermini Oil @ 44.25
Stop level: 45.00Target level: 43.13
Close at 43.13, profit is 112 ticks (US$112)
12. On 9 Dec cut loss on oil trade
Original trade:
Open Long: 1 supermini Oil @ 44.27
Stop level: 42.00
Target level: 46.80
Closed: 43.42 (Loss is US$32.00)
13. On 8 Dec took profit on gold
Original trade:
Open Long: 100 Spot Gold @ 770.25
Stop level: 739
Target level: 799.50Closed: 774.38 (Profit is US$413.00)
14. On 5 Dec target level reached for oil
Original trade:
Open Short: 1 lot Supermini Oil @ 45.56
Stop level: 48.10Target level: 42.83
Closed: 42.83 (Profit is US$273)
If you are interested to generate alternative income by tapping on BL TS system, send an email to me at metal.commodity@gmail.com.
To open a commodity trading account, click here to open.
Risk Disclosure:
Commodity trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to participate in the futures trading markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation to invest nor an offer to Buy/Sell futures or options. The past performance of any trading system or methodology is not necessarily indicative of future results.
brend
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Do you agree with President Lincoln's economic adviser, Henry Carey, on the two systems of capitalism?
"Two systems are before the world; the one looks to increasing the proportion of persons and of capital engaged in trade and transportation, and therefore to diminishing the proportion engaged in producing commodities with which to trade, with necessarily diminished return to the labour of all; while the other looks to increasing the proportion engaged in the work of production, and diminishing that engaged in trade and transportation, with increased return to all, giving to the labourer good wages, and to the owner of capital good profits. One looks to increasing the quantity of raw materials to be exported, and diminishing the inducements to the import of men, thus impoverishing both farmer and planter by throwing on them the burden of freight; while the other looks to increasing the import of men, and diminishing the export of raw materials, thereby enriching both planter and farmer by relieving them from the payment of freight. One looks to compelling the farmers and planters of the Union to continue their contributions for the support of the fleets and armies, the paupers, the nobles and the sovereigns of Europe; the other to enabling ourselves to apply the same means to the moral and intellectual improvement of the sovereigns of America. One looks to the continuance of that bastard freedom of trade which denies the principle of protection, yet doles it out as revenue duties; the other to extending the area of legitimate free trade by the establishment of perfect protection, followed by the annexation of individuals and communities, and ultimately by the abolition of custom-houses. One looks to exporting men to occupy desert tracts, the sovereignty of which is obtained by aid of diplomacy or war; the other to increasing the value of an immense extent of vacant land by importing men by millions for their occupation. One looks to increasing the necessity for commerce; the other to increasing the power to maintain it. One looks to underworking the Hindoo, and sinking the rest of the world to his level; the other to raising the standard of man throughout the world to our level. One looks to pauperism, ignorance, depopulation, and barbarism; the other in increasing wealth, comfort, intelligence, combination of action, and civilization. One looks towards universal war; the other towards universal peace.
One is the British system; the other we may be proud to call the American system, for it is the only one ever devised the tendency of which was that of elevating while equalizing the condition of man throughout the world.
It, the British System, is the most gigantic system of slavery the world has yet seen, and therefore it is that freedom gradually disappears from every country over which England is enabled to obtain control. By adopting the ‘free trade,’ or the British system, we place ourselves side by side with the men who have ruined Ireland and India, and are now poisoning and enslaving the Chinese people. By adopting the other trade, we place ourselves by the side of those whose measures tend not only to the improvement of their own subjects, but to the emancipation of the slave everywhere.
Such is the true mission of the people of these United States – to raise the value of labour throughout the world, we need only to raise the value of our own."
So, given our economic troubles, which system shall the United States use as a model today – the one which made us truly independent from the British Empire, and built our economy from the ground up? Or the British system, which seeks to benefit the speculator at the expense of the producer?
The Daily Elitist
9 Mar 10 at 5:22 pm
In order for capitalism to work properly, the Central Banks in the US, Europe and the rest of the world need to be abolished. The Central Banks are the ones that are controlling everything. order the book by Griffin, The Creature from Jekyll Island.
References :
Illia K
9 Mar 10 at 10:24 pm
Today its speculation but 2-3 years prior it was leverage which created cheap capital that enabled business to grow. Views change as the climate shifts. In 1909, JPMorgan saved capitalism by solidifying the banking system. Not even a decade later, he was vilified for having too much control over the body politic. Today its save us and tomorrow it will be damn you. Its all timing.
References :
something stinks
9 Mar 10 at 10:26 pm