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TFC Commodity Trading Forum

Re: Corn prices higher/Limitup/

Oh yes I agree support and resistance can blow out at anytime for a wide variety of reasons. Especially under extreme circomstances. I guess my comment about staying away from volatile markets with extreme potential consequences would especially apply to a single futures market such as the Grains. Trading markets like this is like lighting a match in a gun powder factory. It's the level of risk that concerns me in any market. Some markets should just be avoided from my point of view. Or use a strategy that might capture some profit such as a balanced combination trade that smooths out the risk or various Option Strategies. EX: A spread trade of different months or different Grains. But often Options are priced to perfection and the sellers have themselves covered well too. Bottom line: why expose oneself to a high risk trade unless you can insure yourself from disaster. Just a different way of viewing a trade. I'm sure many will trade Corn and other weather markets and have their risk covered. I just question some outright trades that are put on at times like this. A lot of traders will go for broke on a trade like this and succeed in going broke.