2011-03-30

Last night before going to bed I was tempted to place another buy order for 50 contracts Copper May 2011 at 430.  I did not do so because I did not have available margin.  This was fortunate for me as Copper reached 430 at 2011-03-30, 10:20 am and continued to drop to an intra-day low of 424.03 at 2011-03-30, 11:01 am.  I would not have been happy, but most importantly I would not have done anything at all, I would not have sold out my position to preserve capital, and this will be a lession I need to review now.  I am breaking my own rules of trading and losing discipline is not a good trait.  Even if the markets turn back into my direction it will only be because I am lucky.

Currently I have the following positions;
Long 50 contracts Copper May 2011 with ACB of 437.88
Short 100000 USDJPY with ACB of 82.458
Short 1300 contracts Nikkei 225 with ACB of 9557.38

Copper May 2011 is currently at 428.70 (2011-03-30, 23:03 pm EST)
USDJPY is currently at 82.833 (2011-03-30, 23:03 pm EST)
Nikkei 225 is currently at 9697.7 (2011-03-30, 23:04 pm EST)

All three trades are losing are thus taking up my Monetary Capital as well is Mental Capital.

For Copper I entered the Long after a gap-down, looking for retracement back to the pre-gap level.  This strategy I know is in direct violation of other Trader's playbook and can now be used as the reason for my loss.  I imagine 125 Kg Copper Cathode sheets neatly palletized banded by aluminum bands in 2 metric ton blocks sitting on my front lawn after I take deliver of them, gathering dust for seasons to come, until China decides to buy them from me in their 13th 5-year plan 5 years from now.  Hope the metal does not oxidize and turn green by then.

For USDJPY I entered the Short because I believed the aggregate effect of the weakening USD and weakening JPY would result in USD weakening more against JPY, thus for JPY to strengthen against the USD.  I still believe in this Thesis and therefore Short Nikkei 225 because I believe the Nuclear Crisis is worsening, and the visible hand of intervention will eventually have to stop proping up the market.  So far my margin account is not as deep as BOJ's pockets and I am losing.

Copper May 2011 is currently at 428.30 (2011-03-30, 23:27 pm EST)
USDJPY is currently at 82.837 (2011-03-30, 23:27 pm EST)
Nikkei 225 is currently at 9713.00 (2011-03-30, 23:27 pm EST) and Afternoon Session will commence trading in 3 mintues.

Let me get some Tomato soup in 3 mintues and come back to the screens.

Stay Tuned.

Jeff
(2011-03-30, 23:28 pm EST)