It was a week of taking punishment for my undisciplined actions in wheat and corn. I took a net loss of $16K. It was more than my entire May's profit. Although I will continue to roll over to future months but consider the time and opportunity I lost during the holding period, plus the added risk.
I realized the add on to average down is not the best strategy to cure an underwater position. Instead I think it is better to take a stop at 1.5 to 2X loss and roll up (down) at 1.5 to 2X size to recover the loss. This strategy may not fully recover the entire loss of the stop out but could recover majority of the loss and prevent a total disaster.
No comments:
Post a Comment