Shorted Rio Tinto PLC – Catching the Momentum

Following my Fortescue short trade, I shorted Rio Tinto PLC. Both were shorted to take advantage of negative iron ore price sentiment.

Screenshot of Rio Tinto PLC short trade via CMC Markets mobile app

I shorted 10,600 shares worth about $1M on 11 March, and closed the position this afternoon (15 March). Thus this position was held for 3 days. The net profit including transaction costs was about $50k.

The circumstances of this trade were similar to the Fortescue trade. 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 afternoon as there is now a non-trivial probability of price reversal back up.

Following this closure, I have no more open trading positions. This is a period where news flow and price movements are fast and furious, so I have been trading more than usual. If you have been trading a lot too, do take care to relax when you can, to maintain your mental edge!

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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