Month: November 2012

This semester’s romp through the futures market has been a lesson in discipline, international trade, and the importance of consistence in computer programing. To stage this final blog post I have decided to discuss what I liked about the project, what I didn’t, and ways I think the project could be improved.

What worked

Trading was an excellent opportunity to get firsthand experience in markets. I think everyone involved in the project walked away with a greater respect for the markets. Most felt price shocks first hand, some dabbled in fundamental analysis, and some played the technical game. What’s more, this project created a common ground for members of the class to bond over.

I think this is good place to note that the guest presentations were excellent. Sometimes it’s insightful for someone with hands on trading experience to share with the class; it helps to balance out the curriculum.

What didn’t

Tradesim. It was inconsistent and cumbersome. It had a user interface that was outdated by the time I had started high school. Frankly, it was just unpleasant. This is news for no one involved in the project; however I felt my conclusion would be lacking if I didn’t have a chance to get that off my chest.

As far as the social media aspect is concerned, the blogs were good, twitter could have been better. If I was to change the blog method, I would make it so that each week is a single entry, instead of three. It would make the blogs easier to navigate and would make them easier to grade. Twitter wasn’t used much beyond blog announcements and info gathering. The fact that we spend about twenty hours a week together means  that most info spreads word of mouth. Sometimes, even in this theologically advanced environment, being social beats social media.

How do we improve this program for the next year?

I would highly encourage the administration to keep the futures project in the curriculum. However, under no conditions should Tradesim be used. If we really look at where this project fell apart, it wasn’t in the construction of the curriculum; it was in the failure of the software. I highly encourage the administration to consider StockTrak.com. Other than that, making a single weekly blog post and less emphasis on twitter would be positive changes.

Wheat seems to be approaching its bottom band. I expect the market to turn bullish at the start of the week. Beans continue their long term downward trend. I expect corn to continue to be bullish, recovering from the big drop at the end of October’s descending triangle.

I was long in wheat at the start of the week. I was looking to take advantage of the flag pattern that wheat has been running since the start of the semester. I realized that this project is quickly coming to a close, and I had not yet my midterm goal of breaking $30,000, so I went big with four contracts short. Sure enough the market turned like clockwork and I walked away with a little over $9,000 gain putting me past my goal of 30,000, ending the week at $30,410.

The Wall Street Journal

While it does require a membership, the journal is one of the best sources of finical information out there. With a longstanding tradition of excellence, it is considered a must read in the world of business. While it is not super consistent on futures commentary, when it does take notice its insight is superb. If you’re looking for a top notch new source, look no further.

Corn looks to be heading up, it’s as low as it has been since the start of the month and seem to be rebounding. It could be a good opportunity. Wheat’s volatility has fallen to almost nil as the contracts wind to a close. There is little opportunity for substantial gains in this market at this time. Soybeans seemed to have stabilized as well.

I was shot on corn at the start of the week. I was able to get out right at the bottom of the market. Other than that I didn’t touch any of the other markets. I was concerned about hurricane sandy and the roll it was going to ply in the markets. I found it better to sit this one out than make a bet on a game I didn’t understand.