This headline from Marketwatch today sure smells like a classic bubble!
In the opening half hour of trading, the soybean bull trend appears to have broken down. Here are the first five trades of the day. The second long lost money, but only a couple of ticks (in the middle of the second chart, I went long, and got out almost as fast); the others have all made money.
Now that it appears the the soybean bullish trend is finished, fast, agile trading in both directions is the order of the day. As a swing trader, this is my specialty. I like trading both directions, as I can make money going both long and short.
Today was the most profitable day in trading that I have had in several months. Normal volume appears to have returned to the financial markets. I even shorted the stock markets, since it seemed to be all the rage today. This was a day for celebration!
Can you believe this chart? Timing in trading grains is essential. If you got out of this first long trade too late, you would have been selling into a panic of long traders trying to get out just as everyone else was doing the same.
The lesson? Don't get greedy. Take you profits! And the corollary is to take you losses early. That way, you stay in the game to play another day!
