Soybean always my attention object in trading game. This week, I still pay my attention on soybean. This week, I get 3 soybean long contracts price in $1515, cause soybean demand is expected bigger than the supply, this is a very significant factor. In addition, drought influenced American soybean harvest. It leads to the shortage supply. Through the technical analysis, I expected soybean price will increase. Therefore, I choose long position.
Date in Contract Position Price in Gain/Loss
2012-11-07 S2X Long 1515 -3150*3=-9450
Unfortunately, I lost a lot of money. Then I search the Internet and want to know what happened in soybean market. I get some information, The US soybean crop is much larger than expected, thanks to late-season rains that blunted the impact of the worst drought in half a century, and the corn crop also is marginally larger, the government said on Friday (09 November 2012). Another factor is that I choose the November soybean contract, while November contract is going to the end and expected stock appeared different, heavy selling force the price decrease.
It’s not to predict which factor is going to play the main role. Sorry to hear that you had loss but you’re on the way of learning tech analysis!