First, I have to confess that I did not trade anything this week. One reason is that the program got me so busy with things such as assignments, projects, cases, you know what I’m saying…so I did not have the time to do my research on the market. Thus, I would rather make no decision than make a blind decision. Another reason is that I was unable to offset my short position in corn, I still held ten December 2013 corn contracts and ten March 2014 corn contracts. I thought the price of corn would continue to drop when I bought them, but it actually shot up last week and up again at the beginning of this week.
Without new market and policy information, the only thing I can do is to completely trust my original analysis and decision from last week, which is to stick with the short positions and hope for the best. Luckily, the corn prices finally begin to drop on Tuesday for some reason and continue to slide for the rest of the week. The highest price of corn this week is $4.49 per bushel and the closing price this Friday is $4.33 per bushel.
As a result, my portfolio value grew back to $98,317 from $88,000 at the beginning of the week. Although I’m pretty happy with the fact that I have got most of my money back, I don’t feel successful because this not a result of my effort. I just sit there and hoped for this to happen, and it actually happened but I don’t even know why!
Lessons learned this week:
- Sometimes, luck plays quite a big part in a person’s success.
- Start to work on things early, do not leave it to the last minute (or you won’t have enough time to do research and trade)
Next week, I swear I will do my research and trade!
And hopefully do well on the midterm.