**Trade Alert: Short Canadian Dollar and Silver**
The system got short Canadian Dollar on Friday and Silver on Friday.
I had warned we might get a sale in Silver on Thursday – the market settled very close to the entry price Thursday night.
You can enter both the Canadian and the Silver markets on Monday if you would like. The markets are close enough to the entry prices to make it all work.
Remember, the way to calculate how many contracts is simple. TAke the value of your account, and divide it by the “1 Contract Per” number to get the number of contracts to trade. For example, if you have a 50K account, you would trade 50,000/6,000 = 8 (rounded down from 8.33) micro Canadian Dollar Contracts.
If you have even the smallest questions on how to execute the system, ask me. I am glad to help as my clients know first hand. You’ll usually get an email from me personally in just a few hours or less.
The Cocoa made a huge move Friday and put a massive amount of profit into the trade. I’ve been totally surprised at the market movement for Cocoa. I was warning about getting stopped out last week Monday, this Monday, Cocoa is solidly in the money. Go Figure.
The Corn and Wheat have both moved nicely in favor of the system. These trades are only one day old so there is a long time to go before we see real profits in either of these trades.
The system got stopped out of the Japanese Yen on Friday. Ugh. I once again have rounded up the risk on the Japanese Yen to a higher number.
Back to Silver – right now, the system is in the odd situation of being long gold and short silver. I mentioned the gold/silver price ratio was at record lows with the note Thursday night.
Many people are taking this to mean the price of Gold will rally to tremendous levels. Remember, it could also mean the price of silver will tumble- or that the price of silver will go down some while the price of gold goes up some.
In Trend Trading, we only care about price action. I follow the fundamentals very closely to help reduce risk if necessary – but my trading decisions are driven nearly entirely by price action. Follow the trends and your account will thank you.
Extended Positions and Orders Here: Orders 2012-02-13
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Michael Sankowski spends a lot of his time applying quantitative mathematics to financial markets. When he's not playing the guitar, he has been a professional trader for 20 years. He's traded billions of dollars on four continents and is a well-known financial writer. He's a CFA, CAIA, and has created patented Futures products. He's here to help you make more money (and especially not lose your money).
