what went right in week#1

 

This first week of trading did encourages me because I got positive gains (even though it’s not really money). On Sept.19th, I shorted on soybeans S2X, the price-in of which I got was 1655.5, and the current price of it is 1621.75. And the amount I bought was one bushel.  Buying the contract three days, I gained ($16.555-$16.2175)*5000=$1687.5

I think there are several reasons that price went down, but when I made my decision to go short, I only thought of one thing: now is the harvesting season for many crops, including soybeans. As supply increases quite a bit, price falls as a result. I read this news article “speedy harvest cut grain prices” online at http://www.commodities-now.com/error-404-page.html

As a only read one piece of information to make a contract, I sincerely think my gains of this trading week are from luck. I shouldn’t have made that deal that irrationally.

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