Discover The 5 Most Important Recurring Trends & Market Cycles
How To Profit From Trading The Grain Markets!*
Out With The Old Tired Methods, and In With New Technology.
Tracking Risk Premium Seasons In The Grains year-after-year, the Earth turns around its axis, producing trading opportunities you can exploit with technical tools.Seasonality and technical analysis can be a powerful combination. Traders who understand the natural supply and demand cycles in the commodities markets can anticipate market turns more precisely, helping them isolate good trading situations and avoid poor ones. Here’s a practical application: tracking risk premium in the soybean market. Soybean prices change based on the perception of future supply. The amount of change is called risk premium. When future supply is perceived to be limited, futures markets tend to build risk premium into prices; thus, prices are higher than would be expected based on present supply and usage patterns.As the perception of future supply becomes clearer, prices return to a lower level more consistent with supply and usage patterns.by Scott W. Barrie
*Trading financial instruments, including Stocks, Futures, Forex or Options on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts. Past performance, whether actual or hypothetical, is not necessarily indicative of future results. All depictions of trades whether by video or image are for illustrative purposes only and not a recommendation to buy or sell any particular financial instrument. See full risk disclosure