My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I am a commodity trading advisor/co manager of a commodity pool who adheres to the philosophy of trend following. Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets us apart from other Commodity trading advisors and commodity pools is that we are not only concerned about the return on investment but how much risk you will have to tolerate to achieve your goals..
There was an interesting article yesterday in the Wall Street Journal. The article spoke about Bluetrend a trend follower & commodity trading advisor who last year earned 43.4%. The article discussing the struggles that Blue trend is currently going through this year ( down 5.5%). The truth is, in commodity futures tradingreturns like last year are above the norm. The other part is returns like this attract a lot of hot inexperienced money. This is exemplified by the drop of assets under management from $8.6 Billion to $7 Billion. In order to compound your way to wealth investors need to commit themselves to their commodity trading advisor for a minimum of 3-5 years. Other than that they make themselves open to disappointment. More so. I got the impression that there was doubt that Bluetrend can come out of this slump. The fact is in commodity futures trading, the only time there is money to be made is when there are trends. If there are no trends the majority of commodity trading advisors will not make money. That is why I stress the idea of patience. No one knows when a trade starts or stops. The whole idea of trend following is make yourself available for the upcoming trends. Quiet times lead to trendy periods.
In addition the article only focused on the largest commodity trading advisors who have billions of dollars under management. The issue that most do not understand, is that it becomes much harder to continue to generate high returns with large amounts of money under management. The more money they have, the more potential slippage, as well as they are limited in the markets they are trading.When one invests with a commodity trading advisor they need to understand their methodology… risk management and money management. There are too many that are guided by returns and not proper due diligence. In conjunction to the quantitative approach a strong investigation into the qualitative issues are important.
Commodity futures trading can be a wonderful way to compound ones way to wealth but only with proper discipline, risk management and patience.
Send For Our Free Report- If You Don’t Understand This, You Don’t Understand Trading: Just fill out the form below.
Andrew Abraham
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money
Andrew Abraham
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money
- Related Videos
- Related Articles
- Ask / Related Q&A
- Major Profits for Commodity Futures Trading In a Crisis
- Drawdowns in Commodity futures trading
- Zero Sum Nature of Commodity Trading & Forex Trading
- Media’s Confusion with Commodity Futures Trading
- How Much Money Do I Really Need for Commodity Futures Trading?
- Donchian The Father of Trading Commodities
- Buy and Hold Versus Commodity Futures Trading
- Realistic Returns in Commodity Trading & Forex Trading
Financial Asset Management- Making the Most of Money
By: Complete Online Info | 15/12/2009Managing financial assets is something that is popular to many individuals thinking of their future. There are several financial management firms that take the responsibility of managing a person or company’s worth to try and make the most with the money.
How to Become Rich – Strategies, Not Schemes
By: Complete Online Info | 15/12/2009Everyone wants to know how to become rich, the faster the better. Many people are frustrated with their current financial situation, but don’t know what to do to change it. The first thing you must realize is that sound strategies, not get rich quick schemes, are the best and most sure way to build lasting wealth for you and your family.
Internal Revenue Code 1031
By: Lance Peters | 15/12/2009As a real estate investor you may be wondering how to make the most of the Internal Revenue Code 1031. You may even think that it works only for those investors with multi-million dollar properties but you would be wrong.
About Kohls Coupons
By: David Muhulgeta | 13/12/2009The great thing about Kohls is that they have it all. You can go Kohls and buy things to wear for yourself, clothes for your kids, home things, tiny appliances, and even shoes! Its not like purchasing at a large discount department place
Free Coupons
By: David Muhulgeta | 12/12/2009Free! Free! Free! You can find zero priced shipping discounts for biggest brand name companies plus more. Download and print your zero priced shipping coupons off the internet. Assess the world wide web to get the reductions or codes you need to receive your free shipping.
How To Sell Your Knowledge For Profit (Part 3)
By: Dr Sunny Obazu Ojeagbase | 11/12/2009If you’re a business owner and you have never experienced the joy of creating cash on demand –– that is cash when you need it –– then consider yourself fortunate to be reading this article.
Being Rich or Being Financially Free
By: dawn gilcrest | 10/12/2009My thoughts on achieving financial freedom through creating cashflow from passive income rather than working at a job. Many people make large amounts of money as long as they work for it. Better to have your money work for you.
Holiday Debt - How To Manage Money
By: Brandon | 09/12/2009Sixteen days until Christmas. The nights are getting colder, the days shorter and chances are your wallet is bulging with receipts. Now is the time to do something about that and stay ahead of the game.
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
November 2009 Commodity Trading Advising Trend Followers Results
By: Andrew Abraham | 02/12/2009 | InvestingWill 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.
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.