Hello Everyone

Another week of busy trading and studying. This week I decided to mainly use two simple strategies in oder to avoid risk, one being diversifying my portfolio and the other one being maintaining a relatively stable percentage of my futures investing.

Keeping in mind that “never put all you eggs in one basket”, I made a series of long and short positions for oats, soybeans, coffee and orange juice futures. So my portfolio became more diversified and in that way, I can allocate risk into different products. However, this will require you to put extra efforts into research and analysis for different kinds of commodities.

Meanwhile, I only made 2-3 trading contracts for every commodity aiming to keep my futures investing a relatively stable 25 – 30% of my portfolio. In that case, even if a market shock occurs, I will still have enough cash to take corresponding actions rather than being passive in the market. But the downside about it is that I will also miss the opportunity of making a greater profit only if I have a larger number contracts of the commodity that is generating money.

Overall, this week’s future market has been quite volatile and it did show us how powerful its high leverage effects can be in both making enormous profits as well as devastating losses. I was not lucky to be in the first situation but fortunately enough to not being in the second scenario due to my simple little strategies.

Future is always full of excitement!

Good Luck Everyone

W.X