funtime

Recently, I haven’t done too much on gathering information and fundamental analysis, basically is technical analysis and that’s it. Since we are trading in a extremely short time horizon, demand and supply can be easily influence by information shock plus we, as students, don’t have much time and  first hand information source, the best approach for us is to do some technical analysis.

Here I share a little trick with everyone. First, set a expected high price and low price for your commodity. Second, get up early in the morning, check the price. If it is higher than high price, go short; lower that low price, go long. (Combine with price trends in recent days).

There is some logic behind! Supply and demand in soybean and corn are relatively stable, given no huge drought, flood or export restriction. Price is basically influenced by information which will make the price fluctuate in a quiet stable pattern.  If price is not falling as you expected, don’t worry, it will sure get to there.

Set the expected price limit is quiet easy; all you should have is to study the pattern of price. As long as they are not too absurd, we will make money.

Last time, I found that one article mentioned that corn contracts are largely held by funds, investor should be aware of the funds in case they get rid of the corn in a sudden. Also, I noticed that Mark has large amount of unrealized gain which is the result of long time holding. Base on the two points above, I decide to go short with corn by long term approach. At the same time, continue with my little trick.

Cheers everyone

Good luck with all of us!

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