Hello Everyone

This is the second week of future trading game and I have to admit that I am already addicted to it. However,addiction usually comes with a cost! I suffered a lost during this week and below are some mistakes I made.

1. Did not stick to my plan and kept changing my mind…a lot. As I have mentioned last week, my prejudgement for Corn future was that it has a declining long term trend based on the USDA September report and the stagnate world economy especially the low oil price. However, concerns of a shortage in the short term had drove December Corn Future price to a weekly high of $399/bushel. That led to a great loss for my first week’s contracts and a turnover of my market prediction. I switched my mind and decided to go long for December Corn. Soon after that, the “fantasy” was destroyed by lower than market anticipated exporting data and a huge decline in the ethanol price. I ended badly by the end of the second week due to a lack of unswerving stance.
2. Did not act fast and forgot to use stop loss order. Friday the 9th was a game changing day for most commodity as the USDA released their reports on crop production and world supply and demand estimates. For the U.S domestic crop production, USDA did adjustments as market previously expected. But for the world supply estimates, wheat supply was adjusted to a record high level. The market reacted immediately by a dramatic drop in the Wheat Future price. Together with previous technical selling, Wheat future price had declined from weekly highest of $531/bushel to as low as $504/bushel. Unfortunately, I did not act fast enough to catch up with the market change and most importantly, a stop loss order was not in place when the loss occurred. It is always hard to admit you made a mistake, but when you do, you better admit it.

Above are what I want to share with everyone this week and hope I will learn from them and do better in the Future.

Good Luck, everyone!

W.X