What went wrong
Ending balance as of 11-16-2012,
Position Value: $2700.00
Cash Available: $42857.69
Equity: $45557.69
Realized Gains: $6918.00
This week I do an experiment, proving that even though the information gives a sign of unbelievable continuing fall, the price trend are the same as the information shock. It is a failure to guess the market trend by the common sense that the price is predicted to increase after a big fall. It is not kidding to analysis and collect information before investment, otherwise, an imprudent guess can lead to big loss.
I bought two contract of soybean, against the information sign of the increasing production by USDA report. I guess the price will increase after two weeks’ fall. But I lost $2069 in a week. How important to abide with the investment rules about the negative influence of supply increase and currency depreciation.
Chicago Board of Trade (CBOT) soybean futures ended lower on Thursday suspended for two days in a row of gains. Investors offset long positions due to “financial cliff” worries and good weather conditions inSouth America. Agricultural market price and theU.S.stock market all fell, the financial investors worried that cliff would not be resolved, theU.S.economy may be in recession.
I ignore such an important news about fiscal cliff.