Week 3 has ended and I seem to be in an ongoing losing streak. My equity has fell to $32371.51. What happened?
Well, the first thing that happened is whenever I made a trade I was surprised by my price in. I’m always trying to buy low and sell high but my price in is always higher than I expected. So even if I get the trend right, often times I’ve made a trade at a much higher price so I don’t receive any gains. For example, I knew the price was going to drop after the USDA report so I wanted to go long on wheat. Upon entering the trade instead of the lower price I still entered at a price of $902.75. The price end of Monday was much lower and even if prices rose within the week there was no way it was going to go in the 900s.
The major thing that went wrong with my wheat purchases is that weather seems to be improving in the Great Plains. As a result, prices have been going down instead of up like I thought it would due to the production problems in other wheat producing countries. It seems planting progress has been good recently. (http://www.insidefutures.com/article/799703/Morning%20Grains%2010/3/12.html)
Read my next post to see what my future plan is.