People who play in financial market must have their own preferred style. They could be long-term investor, short-term speculator or switching between both. I find two things that trading games attract me: one is possibly making money instantly; another is exploring self-identity and inner potential. (Sorry for not interested in any economic thing!)
For a future trade newbie, the biggest challenge is not lack of information, but information overload.When I opened all kinds of websits loaded with tons of news about economy, finance, commodities, I totally got confused. So lesson 1 for future trade newbie: learn to screen information for you decision. Besides, I should learn to weight those information as a reference of order and time of order.
When I first opened a transaction, the initial thinking is ‘NOT LOSE MONEY’. I did some stupid transactions:
The prices of same futures product in different months go the same direction, as the shape of price curves of same futures in different months (i.e. Corn Dec 13 and Corn Mar 15) is nearly the same. I bought 1 unit DEC corn contract and short some quantity of MAR 14. This might be a good strategy to lock risk and only works when premium gets wider (price of DEC contract goes higher and higher than price of MAR contract).
Same day, “Fed unexpectedly refrains from QE taper, keeps bond buying at $85 billion”.Everything rose. I bet commodity market would rise at least only one day,then quickly covered my short position and kept my long position and add another wheat long position. Luckily, the bet turned out to be right.
Lesson 2: before applying any strategy, consider the condition it mostly fits for.
Lesson 3: quickly response to any big bomb news. As quickly as possible!!
Lesson 4: demand and supply are basic principal for price judgement. Policy will affect the marco expectation for a certain period. But how long??
The last but not the least, HAPPY MID-AUTUMN FESTIVAL! 但愿人长久，千里共婵娟