All I can say is thank you BCLC. This one is multi-faceted. On one hand, there is the obvious of knowing how much money you can allot yourself to losing. If you lose, don’t try to “win your money back.” Next, there is the opposite in setting an amount where you know how much you want to win and once you meet those expected profits, get out. Set the limit according to your different expectations of each trade and in this case, use the charts to have an informed limit. Next, is the time limit. Always seek to make some sort of profit within a constant frame. I am still learning how to set these limits in our trading game. What I have been doing is only allowing myself to only have 5 or less contracts at a time while at the same time trying to make a profit every week. I am also attempting to make a profit of $1k per week.

Having said that, how does that all apply to how I did this week? Well, funny enough, I did not set my “limits” properly. In this sense, the limits are the limit orders that I set. I was actually setting the triggers in the wrong direction that I actually wanted. Instead of taking advantage of the HUGE gain on wheat, I actually ended up with a loss of (As I mentioned last week). The -6 didn’t necessarily hurt THAT much, but the lost “potential gains” definitely did. I was supposed to be taking advantage of the wheat continuation pattern that has been going on for a while as I was longing at the low of the pattern and set to short at the high. The trades didn’t go through because of my ineptitude, but I did make a recovery by putting in trades, but not as close to the low. I still finished with some gains. All of this was based on pure technical analysis and it completely paid dividends (not literally). You can see it here:

Courtesy: CME Group