January 9, 2012 Good morning … A few things. First? Tradin g Silver last night was simply a few dol lars higher , after counting in commissions. After that very small profi t, I had five more trades if you can believe i t. That's more commodity tr ades than I usually have in a week, so I'm going to have to keep an eye out that I don't devolve into over-trad ing. The first trade would translate into a $4 0.00 profit if it was translated to th e mini-contract. Then I had a trade that would trans late down to a $10.00 pro fit. Then we slammed lower aroun d 11:48 pm e.s.t., and I lost what would be $100.00 loss for A.M.B. when the spread really opened up. Those are the s ort of things that I really have to watch. That wil l re al ly mes s wi th my money management numbers since it 's now my largest loss . Of course, at this point, we're still building our 'base sample set', and will have extreme values at each end of the spectrum. Usually , I walk away at that point. As I said, I'm going to keep a strict watch on myself at thi s point that I don't 'devolve'. I will state that I'v e noticed over the last two years that the commodity markets are much more 'acces sible' than they once were. There fore, it may not be a case of over-trading, and could simp ly be increased market accessibility . I will still try to monitor this to make sure that I don't standardize any devi ations. Regardless, I then entered the las t trade. It was late, so I set an O.C.O. Bracket; which I 've been experimenting with for the last li ttle bit on Th inkorSwim. I have to say , I really like it. It's a handy piece when it comes to trade mana gemen t after reading the tape. The entran ce would trans late into $28.5 93 on the smal l contract . I exited at what would be $28.671. And then, so help me, if I didn't have anothertrade. For the mini, it woul d have been long at $28 .676, with the OCO Bracket at 28.838 and the low end at 2 8.611. I ended up getting out at what o n the small contract would have been 28.695. Way, way too many trades by that time. So I went to bed. Ok, the second poin t? A trad e idea. Commodity Market #2 Live Cattle (LCG12 or / LEG2 on ThinkorSwim. There is also the possibilit y of COW Calls ): I'm looking for a base to form in both Live Cat tle and Lean Hogs. Of the two, I think that Live Cat tle might be the strongerof the two. Actually , at this point, the base has already formed. So here are my thoughts at this point. W ait for th e open in Liv e Catt le. I beli eve it 's at 10:00 a.m. Wait fi ve minutes. If 120.15 and 120.333 has not been broken throug h, and that support holds? Ifafter five minutes, we begin to trade above 120 .612? I would lookto buy there. Or, rather than try to trade the futures, I could buy a COW A pril 29 Calls with 1
