FRE501 Trading Lab

Hi!,

This has been my first week trading agricultural commodites, and so far so good!.

I went long on three contracts of coffee for december 2015, one contract of oats also for december 2015, and two contracts of corn for march 2016.

My strategy for buying coffee was that on thursday I checked the Nasdaq lastest price chart (http://www.nasdaq.com/markets/coffee.aspx) and saw that after a long decline on its price it was now going upwards, but since I couldn’t find a forecast I didn’t want to go long very far into the future.

After seeing how the price for coffee was doing, I thought maybe Oats was going to perform in the same way, even though it was still decreasing when I went long, so I decided to take the risk, but not far into the future either.

Finally, I decided to buy corn because the price was increasing on the day I bought the two contracts, and since I had already bought two commodities for december 2015, I thought maybe I should risk and buy for march 2016 to see what happens, a little bit more into the future, but not too far.

I think that for my next transactions I will try to find more forecasts and also try to find more sources on the news in order to take a better position, perhaps farther into the future.

On the overall I doing very well!, I have a 2.42% portfolio return and I rank 4th in class! (I don’t mean to show off lol),  this is thanks to the coffee contracts I have.

José