| While most people would actually know about this, | | | | industry. This happens when the price of corn |
| the practice doesn't really happen and the question | | | | becomes too high to withstand and farmers and live |
| that I get most of all is how far they should take | | | | stock owners will turn to much cheaper wheat to |
| their research and when they should stop and where | | | | feed their animals. Now, when the momentum of |
| they should be looking. Well, the question really | | | | more and more farmers switching to wheat becomes |
| depends on which market, which condition and how | | | | apparent, the price of wheat will go up and the price |
| you are trading, and while this article would be | | | | of corn will go down. |
| insufficient for telling you what you should be doing, it | | | | The market will then be either in a flux of rally or |
| can however, tell you general guidelines to follow and | | | | hysteria, which would mean that the price of wheat |
| how to go about following them to your best | | | | might go above the ceiling as there is a frenzy of |
| advantage. | | | | buying and the price of corn might come crashing |
| Looking at your stock investing, a daily chart on the | | | | down as stores of it get left behind in the |
| computer chart when you are investing in Forex will | | | | warehouses. Of course the high prices cannot stay |
| tell you about 6 - 12 months of trading history and | | | | there for long, and it will level out after a while. |
| how you can apply that information to your own | | | | Learning from history helps you to know this |
| trading. You will see much less candlesticks. But of | | | | information and when it happens again, you will be |
| course, this is not enough. Some might say that you | | | | much better prepared to deal with it when the time |
| need to view at least 2 years of trading history | | | | comes. |
| before anything is done. But this depends on what | | | | This is why research is important. Without it, the |
| you are trading. For stocks and bonds 2 years may | | | | word trend would have never come about in the first |
| be enough. But for people trading with futures, some | | | | place and you would not be in the position of where |
| say that 20 year charts are not uncommon for | | | | you are today. All trading depends on conditions, and |
| people to look at. | | | | the world has a tendency to repeat specific events |
| It is really a matter of what you are trading with and | | | | over and over again. Recession, depression, economic |
| this will tell you how much time to look at. Now, for | | | | boom and growth. They happen over and over again |
| some general information. The normal ceiling of any | | | | and patterns will emerge. Markets while ever changing |
| commodity is the cost of substitution. Once | | | | will react in general ways that are similar. It is through |
| commodity can replace another, and for example, | | | | knowing this that will make your online stock |
| corn can be replaced by wheat in the animal feed | | | | investing much more lucrative. |