Since my last update, I have made the following trades:
- BHP (Australia), position size $140k, loss $800, held for 2 days
- Champion Iron, position size $200k, profit $5k, held for 2 days
- Fortescue, position size $180k, loss $4k, held for 2 days
- Mineral Resources, position size $80k, loss $1k, held for 2 days
- Rio Tinto (Australia), position size $2.5M, profit $83.7k, held for 3 days
Below are the screenshots taken just before closing the trades. Prices moved in an unfavorable direction very quickly after I took the screenshots, so the actual realized profits are significantly less than what is shown in the screenshots.
The trades were bets against iron ore prices, as China lockdowns have been worse than expected. I took significant risk in building a large short position in Rio Tinto. Prices had already went down a lot, and the risk of a short-covering bounce was heightened. However, there was decent downside potential in the trade, hence I decided to take a gamble.
I closed the trades this morning, as there are signs of a possible sentiment bounce in commodities today.
On a side note, today’s trades marked the end of a long winning streak for me. This is statistically interesting for me, as I usually do not have such long win streaks. Luck most likely played a significant part in it. I have dedicated a post to it here.