As I forecasted last week, soybeans and corn rose sharply this week. My open positions approached to breakeven.

Soybeans: Paid price 13.1475 VS Last Price this week 13.0925

Corn:Paid price 4.5325 VS Last Price this week 4.405

Soybeans and Corn had been declined continuously after a huge slump at the beginning of October. My lack of knowledge and risk-loving in the futures market resulted in a tremendous returns immediately. As a risk-lover in the beginning of trading game, I insist my own belief ” buy large amount of futures at low price  and sell high price on the basis of my forecast in a short time” in order to pursue a quick returns. After suffering a huge loss, I thought sustainable investment ( Hedging has the smallest risk) is a better method to survive in the competitive futures market

Decision and Prospective  Analysis:

Corn:

Soybeans:

I did not do any transaction  this week because of upward trend in soybeans as I expected last week. It is a good opportunity for me to remain the quantities of soybeans so that I achieve breakeven immediately in the near future. According to Bloomberg news, soybeans and corn will rise persistently on account of improving demand for both futures. This news was a sign to tell me that soybeans and corn may reach to peak in the next week. The harvest of soybeans and corn will be end at Nov. This another sign tell me that those futures will approach to zenith before next harvest season. Therefore, waiting for zenith is only way for me now.

News about Soybeans and Corn:

Soybean, Corn Futures Rise on Improving Demand; Wheat Advances

Portolio Summary from positive to negative:

I enjoyed a 2.25% returns on Sep 27. I think I am a good trader in the trading game. However, I suffered -39.75% returns unpredictably on Oct 1st after unanticipated news posted. I suddenly suffered a trap which induce me hardly to adjust my negative returns situation. Then I continued to encounter -42.04%  returns on Oct 10. I have suffered -22.07% returns on my last week`s portfoilo. This week`s portfoilo begun to rebound slowly (-14.43%). It is a connotation that my portfoilo will achieve breakeven soon becasue of 7.64% increase .

Lessons from this week:

According to “The Art of War” , it said that enemy does not move and I do not move. I think this ancient maxim can be used in the futures market. The fluctuation of futures represents the enemy of speculators which enable us to lose or gain money. If  fluctuation of futures do not change enormously, the method for traders is on standby. When fluctuation of futures, it is a good chance for different traders to gain or loss.

Happy Halloween~