My name in Andrew Abraham. I am a commodity trading advisor - co manager of a commodity pool who adheres to the philosophy of trend following.
Trend following commodity futures trading as well as stock traders were villified last year as speculators. Even George Soros came out with the statement that the rampant rise of crude oil was due to speculators. Trend following commodity trading advisors are speculators but they do not manipulate trends. On of the main principles of trend following is that there is a trend to follow. Commodity traders surely can not start trends. Commodity traders are accused of throwing markets in disorder. As an example in Bloomberg news yesterday it was reported that The Commodity Futures Trading Commission ( CFTC) will announce plans to introduce curbs on speculation of commodities including energy.
So much for free markets? So much for going short as in last years stock market crash. Short sellers were simply following the trend. The trend for financial stocks was down, commodity trading advisors or stock traders shorted the stock indexes. They did not start the trend. Commodity futures traders did not make loans or grant mortgages unwisely. The banks and the credit card companys did.
We all remember the Hunt brothers who tried to corner the silver market. That was manipulation. How many commodity futures traders try to corner a market? How about none. They do not need to in order to be successful. Markets go up and down based on fears, panics, demands and supply. The simple fact is trend followers do not start trends or panics they simply react to them and make themselves available for them. They can go long or short. No opinion..just trend follow.
It is almost easy to blame someone or make someone the scape goat. Come on..really did commodity futures trading or stock index trading cause last years crash. But traders (short sellers) were made the scape goat and singled out as speculators that caused the stock market down turn. Did I forget something that anyone could have sold a contract on one of the regulated exchanges or a profunds bear fund. That is a free market. The blame game is a loser who had the same option as a winning trend follower who does not want to take responsibility for their losses.
How can Washington control a free market?
Andy Abraham
www.myinvestorsplace.com
Futures and commodity trading involve substantial risk.People can and do lose money trading.
- Related Articles
- Related Q&A
- Commodity Futures Trading / Commodity Options Trading
- Drawdowns in Commodity futures trading
- Major Profits for Commodity Futures Trading In a Crisis
- Buy and Hold Versus Commodity Futures Trading
- Media’s Confusion with Commodity Futures Trading
- How Much Money Do I Really Need for Commodity Futures Trading?
- Risk & Commodity Futures Trading
- An Initiation To Commodity Futures Trading
Thomas Adair
thomasadair@hotmail.com
Developer of the Holy Grail to Investing
Right Product in the Forex Market
By: Alexandre Cayer | 23/12/2009The financial market is very complicated it is hard to manage everything at once but with an automated program that you removed a lot of pressure. This program is very popular for over 7 years at close to many financial professional can be used to stop exchange if you have a day job and u got no times he works continuously for you.
Best Forex Answer
By: Alexandre Cayer | 23/12/2009This software can be expensive when you start as a beginner, but once you get your return on investment you could think to about your purchase. This program is essential for a good investment return on the stock market. It will help you get consistently good results and can be used 24 hours a days because it can be put on a hosting server on the Internet and it works single. So it is no longer necessary for you to sit all the times at the computer to manage your stock exchange.
Tons of Money Waiting For You With This Forex Software
By: Alexandre Cayer | 23/12/2009You are so tired of your day job, and frustrated because you do not make the money you need to live your life, this new software automates is what you seek. Each day you can easily get a sum of 150 dollars if you use it correctly and it does not need experience so every one beginner can use it easily.
10 Days of Stocks & Commodities
By: Chris Vermeulen | 23/12/2009It’s been a great year as we head into the final few trading sessions. The past several weeks the indexes have not done much of anything which is why we are now in cash. I feel as though the market is about to change direction abruptly in the coming days or weeks. I feel this way for several reasons: 1. NYSE, Dow Jones, S&P500;are all drifting higher into resistance levels on the 10 day, 60 minute charts. Light volume tends to favor higher price hence the reason for the holiday rally. 2. Broad
Portfolio Risk Management
By: Hans Wagner | 23/12/2009Portfolio risk management is crucial to successful stock market investing. By applying proven risk management strategies, you can be successful when investing in stocks and ETFs.
How To Identify The Best Micro-Cap Stocks To Invest In
By: Ben Lardes | 23/12/2009Everyone wants to know how to find the best stocks to invest in. And micro-cap stocks are no different.
How To Find The Most Active Penny Stocks
By: Ben Lardes | 23/12/2009Penny stocks can offer a great opportunity to try and make a nice profit on stocks that aren’t on the main stock exchange. Trying to find the next big company and the most active penny stocks is a challenge that many people love.
Discover How To Predict Stock Prices
By: Ben Lardes | 23/12/2009There are two types of guessing – normal guesses and educated guesses. And it should be understood that predicting stock prices, even with knowledge and understanding of the markets and the individual stocks and companies, isn’t easy. No one can get it right all the time.
Can You Lose Money By owning Gold?
By: Andrew Abraham | 08/12/2009 | InvestingCan 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.
Investment Fraud after Investment Fraud
By: Andrew Abraham | 04/12/2009 | FinanceSo many thought all the investment frauds would have ended already. However more and more have come to light
How Should You Invest in 2010?
By: Andrew Abraham | 03/12/2009 | Personal Finance2010 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.
Research in Commodity Trading
By: Andrew Abraham | 30/11/2009 | InvestingThere 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.
How To Invest in a Commodity Trading Advisor
By: Andrew Abraham | 29/11/2009 | InvestingMaybe it is human nature… maybe it is a lack of patience or discipline…or the new word courage…why do so many lose money when investing with legendary Commodity trading advisors? I have seen it over and over again.
Is This The End of The Stock Market Rally?
By: Andrew Abraham | 27/11/2009 | InvestingThere are really no isolated incidents in the world. Today we are waking up to the news that Dubai might be defaulting on its debt. Stock Markets around the world are plummeting. There are many other issues that hardly made the news.
Why Is The Price of Gold Moving?
By: Andrew Abraham | 26/11/2009 | InvestingIf you think...that I or anyone else really know why the price of gold is moving...you will need to find another article. Guess what...everyone has opinions..The fact however is that the price is going up...and that is why virtually every trend follower ...every commodity trading advisor has purchased gold.