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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Trade of the week: short corn

Corn looks to have ended its corrective move higher at last week’s 464 high, which is why we would like to go short the commodity, with a downside target around 410 and a stop loss at 465.

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(AI Video Summary)

Why stop losses are so important

In this week's "Trading the trend", Axel Rudolph delves into the importance of setting stop loss levels through the analysis of past trades, such as Robusta coffee and the NASDAQ 100.

An unsuccessful Robusta Coffee short trade highlighted the critical role of stop losses in minimising potential trading capital losses. Rudolph advises placing a stop loss above the all-time high to prevent excessive losses.

This week's trading opportunities

Rudolph also previews going short on corn based on the 200-day moving average and Elliott Wave patterns, with a tight stop loss set above last Friday's 464 high, with a downside target around 410 and a stop loss at 465. These are effective strategies to manage and mitigate risk in volatile markets.

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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