This is a busy week! Busy making money in the future game and catching the tail of the gorgeous summer! Well, it starts raining this morning, and I finally grab the chance to stay at home and take a break. And it’s blog time!
Here is my open position:
I started trading on Tuesday morning this week, when I suddenly found that the price of wheat is growing crazy, like climbing Grouse Mountain. I immediately bought in some wheat, hoping to get on this crazy roaring bus! And it turned out that I was pretty lucky. Here I am, smiling at the top of Grouse. 🙂
I didn’t change much about my portfolio of corn and soybean since these two guys were quite boring this week. Price of corn is fluctuating between 4.48 and 4.59, with no clue to predict which direction it is heading for. Price of soybean is even more stable, hovering around 13.17, losing its direction. Guess this is the human nature. When there is no information, people will just gamble on the commodity future, which leads to a zero-sum game of all.
Here are some important lessons I learned in this happy week:
- Get up early, watch the news and trade.
- Pay attention to the weather report around the world.
- Always set a limit or stop price instead of the market price.
It seems the price of agriculture commodities depends a lot on the weather, which has a strong impact on yield in this harvest season. If you get up early to check out the weather report and sign some contracts before anyone else does, then there will be a great chance to make some money in the rest of the day. This is the law of information spread, right?
PS:
We know that recent frosts in Argentina have caused a crazy increase in wheat price this week. But it is also reported that “Argentina expects a large crop of wheat next November despite recent frosts”. And the USDA will release Quarterly grain stocks figures on Monday. I am sure next week will be much more exciting!
Have a nice weekend!