|
Let's look at another missed
opportunity; this one was in Feeder Cattle:
Notice this trade started on
October 10th, 2002 and continues past a buy on March 21st,
2003: This is what we call
"Swing Trading", where you stay
in the market at all times and
never exit until the
contract ends. (No, this is not buy and hold.)
In the example above the swing trading method is executed
using the charting analysis tool, Moving Averages (MA). Notice the
three different colored lines. The 4 day MA,
(In Orange.),
The 9 day MA line,
(In Yellow.),
and the 18 day MA line,
(In Green.)
Traders use these moving average lines
to confirm key market reversal points. These market reversal points
are indicated by the three MA lines making a complete crossover
i.e.
the position of the 4, 9, 18, flips and becomes 18, 9, 4 or vice versa.
Knowing this,
you could have swing traded the moving average
crossovers in Feeder Cattle and made
over $5,000.00 dollars!
Previous Example
Next Example
 |