Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Dirt cheap commodities, big discount to cash, low volatility, cheap options, record managed money shorts and record open interest equals home run. The conditions are often accompanied be low RSI, low stochastics over all time periods and bullish divergence over all time periods. The rules of trading have not been repealed. All you have to do is be patient and wait for the changing dynamics to play out. Wait! Short term price movements are random. They mean nothing. Don't try to micromanage your position, the charts or the COT. It can't be done. Get positioned and be patient. The market will move when it's ready, not when you want it to. Positioning is important because bottom picking can wear you out. If you are human, you may find it difficult to buy if you miss the bottom. Home runs are on the horizon. Be there! Bring risk management, margin management, and diversification along for the ride. Bury your emotion, cherry picking and unwillingness to follow your tools in the backyard. They don't work. You can dance over their grave after you score. Scores are good. To quote my favorite intelligence analyst, "Why would I trade something that works for something that doesn't."