June ended with my biggest draw down ($22K) since I started trading futures options. It was right after my best returns of April and May. I got into fighting the down trend of the wheat after the big up trend caused by Ukraine crisis and US winter drought. I was too slow to recognize the trend change even after the strong first weekly down bar. I relied on my view and hope of the wheat market instead of objectively analyzing the market. I was also facing a lack of production information which I don't have many timely sources other than GrainTV and Arlan101.
I remember I was feeling bored and didn't have a sense of direction for the grain market in later May. I thought I wasn't going to get much done for the summer and I was over confidence in my ability of handling the grain market. Whenever I am not humble and alert to market risk the market will teach me a hard lesson.
My strategy for position adjustment and rollover have flows too. I was heavily rely on rollover instead using it as a last resort. I was trying to avoid the pain of taking losses. I drafted a new position adjustment procedure to correct it. I need to review and update the procedure to make it into my thinking habit.
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