The Grain Trader
Trading the Not-So-Popular Markets
Corn, Wheat, and Soybeans
15 years ago, I came across a trader who would only trade grains. Yep, corn, wheat, and soybeans were all he cared about. Dull right?
Wrong.
This guy was killing it. Whilst everyone else was battling with the DAX, Oil, Nas, or latest face-ripping stock, he was calmly day-trading these three products. When I asked him why he traded these, he just chuckled and said “I want to go where everyone else is not.”
In other words, yes the volatility was less and perhaps these markets were not as exciting. But he found them more predictable, and the slower-moving nature suited his personality. Personally, I haven’t traded the grains much, I had a spell trading coffee back in 2010 if that counts…
(It was a perfect storm of a coffee berry borer and a bunch of hedge funds with short positions. Nice.)
Today, think about all the different markets out there.
Are you trading your current market just because it’s popular or is it the best fit for your style and personality?
We’ve got to be careful not to get into “the grass is greener over there” mentality, but I do believe in regularly auditing your trading vehicle of choice.
Yes, you may not become a grain trader, and yes you might be perfectly happy trading what you trade.
But there are a lot of markets out there and you never know, you might become the next ‘Live Cattle’ whale!
Grains' Prices
If you are curious about the grain market, this is the website for all your news:
http://grainpricenews.com/
It used to be called Agrimoney (that’s where I read about the coffee pest for the short squeeze trade) but it looks like they have rebranded or been bought out.
Anyway, it’s free. Combine that with finviz to see the grain price action and you might find some nice plays.