Time Frames In Commodity Trading & Forex Trading
In Commodity trading there are countless answers that need to be answered. The good news…is you get to decide…the bad news is that most commodity traders, stock traders or even forex traders never think of all the questions they need to answer and do not develop a trading plan. If you truly want to succeed in commodity trading you need to develop your trading plan…or you have another choice…look to invest with a commodity trading advisor in which you understand his/her methodology and how they approach risk.
Regardless of if you want to trade on your own ( preferably with a trend following systematic approach) or allocate to a commodity trading advisor or even groups of commodity trading advisors you need to be aware of time frames and preferably diversify them.
The idea of time frame generally refers to the length of time you would expect to hold the trade. One can trade intra day..( & run up large commissions and encounter slippage) or short term…mid term…long term. More so how you do really define each of these periods is up to you?Again the good news is you get to chose. It is all up to you…BUT YOU MUST THINK ABOUT IT. If you don't you will become another statistic of failed commodity traders.
No one can make these decisions… and you must determine what fits your personality. You must trade in which it is carefree.. Yes.. I truly mean carefree…
I know that I do not know the future..(contrary to CNBC or Bloomberg). I know that even different time frame charts look different.
Personally one of the things that works for me is to simply spread it all out and diversify.
What I do is allocate to other commodity trading advisors that have different time frames… or run multiple time frame models…This gives me some diversification from one of the models I am trading with my colleagues….More so after almost a combined 100 years of seeing virtually every mistake ( between me and my 2 colleagues)… one of the models we trade is multi market.. multi system…and multi time frame… with strong risk management from the trade level…to the sector level…and to the whole portfolio level.
You need to ask yourself …do you really want to have a chance of success in commodity trading or forex … If the answer is yes…then develop a comprehensive plan..realize you need to include a time frame that matches your personality and work framework…Or you have the option of investing with a commodity trading advisor in which you understand what he/she is doing…and allocate to them…
Andrew Abraham
A.Abraham@AngusJackson.com
www.AJpartnersinc.com
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money
Questions and Answers
Below is a short list of Commodity Trading Advisors that Trend Follow. Trend Following has been around since the time of Donchian. The interesting point is that Commodity trading advisors that really understand risk have been able to generate returns of 15-20% over long periods of time.
So you want to be involved in Commodity trading and trend following. You realize the benefits of liquidity and transparency in commodity trading & trend following. You realize that potentially you can protect your net worth from the potential of inflation. I really should not even say potential, with all the money that was printed by governments all over the world to me it would be a 6th sigma event if it does not happen
Beginners in the world of futures trading could sometimes find it difficult to notice the shifts in trading patterns that they rely upon to make income. The whole system of the stock market could be particularly unpredictable one and sometimes even the economic advisors on the internet may not find out where the biggest shifts in futures trading will happen in a particular season.
For those who are seeking success in the Forex Market, there is really only one proven concept. That is trend following. Trend Following works in every asset class over time ( with strong discipline and patience) such as commodity trading, futures trading, stock trading and forex market.
The question is… Can trend following end? First of all… anything can happen and it will happen. However as a long time trend follower, in my opinion there are numerous reasons why I do not believe trend following can or will end.
The reality is there exists a great deal of correlation between trend following commodity trading advisors... But there are always a difference in their returns...
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The fully automated service sends an email confirmation in receipt of the amount and then processes the order. Among the reputed agencies to order foreign currency from is Pawnbroker.
Created by David Lambert, the CCI was first used as an indicator for determining reversal points in the Commodities Markets. It was then discovered to be very useful in the share and forex markets. It is based on the theory that all activities move under the influence of cycles. The Maxima (+100) and the Minima (-100) occurring at regular intervals. The CCI measures the speed of price fluxuations as determined by oscillators.
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Can You Lose Money By owning Gold? So many gold bugs think this is absolutely impossible. However as a commodity trading advisor... I believe anything can happen and stick to a thought out plan. Let me give you an example, In the 1980s gold reached $1223 and investors were throwing money at gold. However almost 30 years have gone by and nada..I mean even in a savings account someone would have out performed gold.
So many thought all the investment frauds would have ended already. However more and more have come to light
2010 is fast approaching. I have had conversations with colleagues..and the issue that was brought up so many times was 2007-2009 just a fluke or the beginning of something more serious. As usual... I told them to their discern I do not know the future. However in all reality... if we ran our personal households how the central banks and banks ran their portfolios we would be living on the street and I feel there will be a price to pay.
Will the last 2 months of 2009 make the year for trend following commodity trading advisors or will it be one of those lack luster years? It reminds of a football game and we are in the last quarter with only a few minutes left. The truth though is that trend following commodity trading advisors might not score...and have a good year.
There are those in the camp that successful commodity trading can be achieved from research. Honestly I am in the camp of being a trend follower…having no opinions..and simply reacting to price with a strong focus on risk.
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