Lots of tasks this week made me much exhausted, what’ worse, I got a big loss on Monday…
However, based on my strategies, I gained the money back from 15,125 to 25,920.
First bid on 12 (gain 7,450)
Two long contracts for corn at 629.7
Five Long contracts for soybeans at 1230.6
My decision was that I went long for corn and soybeans even though I missed the big jump in futures prices on Monday, because the market expects China to buy corn this week to take advantage of a steep decline in global prices, which will potentially increase the corn price because of the following tightened supply. Also Russia had decreased their corn exports in order to keep inventories on their domestic market, which still made the corn futures bullish.
There were two reasons for taking five long contracts for soybeans. Firstly, I wanted to offset my soybeans contracts (maybe not insightful). Secondly, as China increased purchases of soybeans and soybeans oil after global prices slumped, it will probably rise the soybeans price.
Second bid on 13 (gain 3,345)
Short for corn at 640.7, long for soybeans at 1250.3 and short for wheat at 621.7
I took five short contracts for corn just because I wanted to offset my contracts and be ready to go short. The reason was that the U.S. government boosted its estimates for global stockpiles, signaling increased supplies for makers of food, animal feed and ethanol which will drive the corn price down in the following few days. Because of this, I also took two short contracts for wheat.
Furthermore, I went long for soybeans because the report from the National Oilseed Processors Association showed soybean oil stocks of 1.950 billion pounds down from 2.313 billion which indicated an increase in soybean oil demand; therefore the soybeans price would go up.
In sum, I am quite satisfied that the big loss on Monday has been offset by two bids mentioned above. Hopefully, next week it will be going better…
Haha, seems like you just been through a struggle week just like mine.
However, you did a better job than me, I only survive to rise my profit from 15000 around to just over 20000.
Monday’s trading really brought all of us a huge damage.
Good luck for next week!
haha..Lixi, there is no better or no worse on our trading game, just have fun on it, coz anyone just forecasts the price with limited resources. you earned 5000 back already, so its good enough…haha…have fun on Halloween I know you will for sure, right? haha, enjoy…
hahah Deron!
Everyone is soo tired this week…and thers no diference between week and weekend..and this gonna last for 15days till 1of nov…sigh….
wow i just never bid 5contracts at one time….the maximum i hold is like 4contracts.then i offset the next day once i see a slight change in price haha
im soo risk averse 🙂
good luck on ur exam:)
Hey, Fancy…You can say that again!
but we have finished the tough period…become bright…haha
anyway, enjoy this week…coz next time will be Christmas break…
wowww deronnn 오빠! 잘 했어요!
such a busy week, but u managed to make a lot of money!
nice blog btw! Your blog is easy to read, clear, short and i very easy to follow!
Good strategies! seems like you are pretty rational when it comes to bidding, and you are brave and bid in high numbers! u deserved ur profit! hahaha
i had so much trouble deciding what to do with soybeans this week, but u managed to have made some good decisions!
good luck studying! see you on Monday =)
고맙다! 여동생! haha…
Why I bid in high numbers is I have no chioce, because it is the only way to offset my contracts before the break week. Otherwise, it will probably lose more. Anyway, when i type the korean I found english is so easy!!!… haha… Enjoy the Halloween…
Hey Deron, I think you have already got into the trend of how to estimate the prices!!!~and I think you know how to figure out which is the important factor that will affect the prices…but for me, I am still confused…since I think that although Europe has a plan and is trying to settle down the debt crisis, I always trap by this and do not know how much this factor will affect the price now…then I confused how other factors will temporarily affect the price in the market…I think maybe I need to ask you more about this after the midterm exam!~
Good luck for your exams next week!~
Hey, Yan! Thanks for your comments which made me more confidence on it. haha, anyway, but the fact is i just catched the right information this week and the luck as well. No one could always earn or lose. it really depents on which information one gets. Like my loss of this week, that is due to missing correct information. Good Luck…Enjoy this weekend…