Shorted Fortescue – roller coaster ride

After my last trade, my next trade was shorting Fortescue (via CFD as usual). I just closed this position this morning. Below is the screenshot taken just before position clearing.

Screenshot of Fortescue short position taken from CMC Markets mobile app

This trade was opened last Thursday, hence I held onto the position for 3 days. Position size was 204,600 shares worth about $3.3M, broken up into small 1,100 shares positions.

I did not manage to realize this $197k, as prices went slightly up during my position clearing process. My net profit from this trade, taking into account transaction and holding fees, is probably about $179k.

The position actually went negative $80+k on Friday, but reversed to as high as positive $240+k today. The drop at the open today was due to China COVID lockdown fears. However, today’s China economic data release was very positive and caused the drop to be reduced. I decided to take profit this morning as there is now a non-trivial probability of price reversal back up.

I actually still have a smaller Rio Tinto PLC (London market) short position. Most likely, I will try to clear this position later in the afternoon, but I will assess how the commodity and stock markets are moving before making a final decision.

Author: novaliser

I have been trading since 2012, and retired from the corporate world in Dec 2021 after accumulating enough profits to feel comfortable living without a stable monthly income.

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