I have been stopped out of the corn trade. Trade sheet here.

This trade had a tension between a news breakout that could have been the beginning of a new trend, and a likely technical resistance level standing in the way of a trend. Sadly for me, it was the latter that prevailed.

My mistake here was to trade because I thought this could be a strong news breakout, without really knowing. A news breakout is something in which one should have a lot of conviction and a pretty good understanding and not be guided by the comments of brokers or journalists (“of course not”, you say; OK then, you try it). Otherwise, there is no justification for the news breakout overriding the fourth reason not to trade: major resistance in the way of the profit target. The market has bounced off the resistance level and taken out my stop.




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