Friends, I must say that this was the week I actually understood what the whole trading was about. Earlier on, I knew that when you expected prices to increase, then you take a long position. Conversely, an anticipation that price might go down then you take a shot position. One big thing I didn’t know was how profits were made on each position. For example, I didn’t know that if you took a long position as a speculator because you anticipate a price increase, then you must resell your contract when price have gone up in order to make the profit.

So to me, I long when I anticipate a price increase and shot when I anticipate a price decrease. So all along, it didn’t make sense to me. That was pretty much it. The logic wasn’t just adding up. How can I just take a long position and sit down doing nothing and wake up one day to see profits on my portfolio. What happened and how did it happen? I was never sure and at a point felt that I still didn’t understand what I was doing.

You may wonder how I found out. I asked the Prof this week during our Futures Market lessons for further clarification. That was when I got to know that a long position must be shot again in order to make the profit just as a shot position must be longed to capture the profits.

I then asked myself, where were all the returns I made in the previous trades come from? Because I only took long positions without reselling. And when I expected price to go down, I took short positions without going to long again. I still wonder.

After the Prof’s explanations, I went to check my transaction records and realised that some of the contracts I had longed could be resold. Because I found out that wheat price had increased beyond what i bought. So i immediately resold my wheat contracts. Similarly, I resold my previously shot soybeans contracts because prices further declined. Though I had read in the news about USDA crop report, I was convinced the best way to making my money back was to resell/shot my previously contracts.

As at now, my portfolio balance stands at $123, 881.80 with 23.88% returns. In fact, this is the best I have ever gained.