"Again, The Pros Look Past Daily Price Moves for Their Profits."
The 'Commercials' are the Professionals who are in business for the long-haul in the Commodity field. You can join them in a profitable enterprise if you learn to be patient and track the longer-term trends.
In the case of the Lumber Market shown above, many were 'shocked' that prices could rise in the midst of all this pandemic hoopla, however, those who stood back a little and examined the longer-term trend at the Weekly & Monthly level of Time, save the shift to an upwards trend back in early April.
Handle Markets Like the Businesses They Really Are
We need to remind ourselves that the foundational members of each Market (whether Producer or Wholesaler) are in business to make a profit. In fact, there is no business without a profit, and, these institutions are present year-after-year.
That couldn't happen if they couldn't repeat their business model of making money EVERY year. They're not speculators. They're in these markets to make money, and, I suggest that serious traders take the same attitude and copy some of the aspects of their Strategies.
A long-term perspective is one of those critical strategic elements which we can and should emulate. This approach demands a certain shift in our risk parameters and in our cash holdings, but, it's still entirely possible to pull off as a smaller trader and reap the rewards percentages of the largest of institutions. - George
Email: email@example.com to learn how you can acquire some of the secret skills & knowledge of W.D. Gann and a deeper, fuller understanding of the markets & price behavior.