Hey everyone,before i start writing,i just wanna say THANK YOU SOOO MUCH to Tasha, Javier.Jim, Andrew and to Nick,Caroline,Zheng,Janelle.Those who have been bothered by me soooo many times this week by my questions!!!! I had a hard time calculating my profit since i offset different contracts.But now i can say im a expert in calculating it and become really addicted to do it,even though excel helps us do it already!I really enjoy the excitment when you find out your calculation is exactly the same as in excel!So if anyone who has problem calculating it,just let me know,and im pretty sure your suitation wont be “stranger”than mine since i think ive met all the calculation situation:)

However im not very good at predicting future market price based on the news.But i still have a quick glimpse to the news everyday to have a general idea.Basically i just follow the chart, i prefer candle than bar or line.(What disappointed me most is i gained the biggest amount of money by doing nothing!!!)So i think from this week,my goal is to know how to predict price basing on news!So,classmates,be prepared,ill have tons of questions!

Anyways,I earned money!!now my margin balance is 31480! Everyday i can earn some money,sometimes big sometimes small,I think its because i have long and short contracts at the same time,and i dont bid big numbers.This time ill mainly focus on calculation.

19th.

I bid nothing that day.since i still had 1short corn,3 short soybean and 1 short wheat.so i just need to use previous close price-today close price

profit:

corn=50*(692-692.2)= -10

soybean=3*50*(1355.4-1336)=2910

wheat=50*(688.2-673)=760

margin blance=26590

20th.

I went 1 short corn @691. nothing on soybean and went 1 short wheat@676.But dont forget to add up the remained contracts u bid before.

For corn and wheat,i was new to market,then should use bid price-close price.

corn=50*(691-690.2)+50*(692.2-690)=140

soybean=3*50*(1336-1338)=-300

wheat=50*(676-674.6)+50*(673-674.6)=-10

margin balance=26420

21st.

I did nothing on corn,went long 3 soybean to offset @1348 and went long-1@673.

so i still have 2shorts corn,0soybean and 1 wheat.Btw after offset,no matter if you still have contract left,just no need to calculating the old offset part next time.After offset,its new!!

corn=2*50(690.2-685.6)=460

soybean=3*50*(1338-1320.4)+3*50*(1320.4-1348)=-1500

wheat=2*50*(674.6-666.6)+50*(666.6-673)=480

margin balance=25860

22nd.

I did nothing but eared a lot!

corn=2*50(685.6-650)=3560

soybean=0

wheat=50*(666.6-633.6)=1650

margin balance=31070

23rd.

I went 1 long corn@638.4 and 1 short soybean (but bid price is higher than high price,so i didnt enter market).About wheat,i went 1 long @635.

Then i offset 1 contract of corn and still got 1 left.Also i offset 1 contract wheat,still get 1 left.

corn=2*50(650-638.4)+50*(638.4-652)=480

soybean=0

wheat=50*(633.6-640.6)+50*(640.6-635)=-70

margin balance=31480.

 

I hope this numbers wont make you feel more confused!Basically rule is everyday if u bid,its new to market which need to compare bid price with low or high price to see if u enter market.At the same time,you need to figure out how many contracts you left and dont forget to carry on to today.Also,if you didnt bid anything,contracts and price should carry on!

I hope next week i can have an idea of using information and news as well as knowledge to predict price up and down:)But i made progress this week and im gaining money which is not that bad!

 

Have a nice weekend!

Fancy