Andrew Abraham

andy-0101 My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I adhere 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 me apart from other traders is that I am not only concerned about the return on investment but how much risk I will have to tolerate to achieve my goals.

Contact Details

If you are interested in contacting for speaking engagements. Please email me at Andrabr9@gmail.com or call 954 903 0638.

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Risk Warning

Futures and commodity trading involve substantial risk. The evaluations of futures and commodities may fluctuate and as a result, clients may lose more than their original investment. In no event should the content of this website be construed as an express or an implied promise, guarantee or implication by, that you will profit, or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible, where projections of future conditions are attempted.

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Accuracy Versus Returns in Commodity Trading & Forex Trading

There are many novice traders in commodity trading & forex trading that feel they need to have accuracy higher than 70% or even 80%. This is absolutely inaccurate. These are the same inexperienced traders that believe that they can have an automated forex holy grail system.

The fact is,firstly traders in both commodity trading and forex trading need an exact plan built around risk management and money management. In both cases again, in forex trading especially due to the immense leverage risk per trade should not be risking more than 1% max of your account size. Yes..that is it.. not more..if it use more risk…you stand the chance of blowing up. Taking 1% risks some say will never get me to my goals.. Wrong.. position sizing and simply the odds of making yourself available will get you to your goals. What I mean is, when you have a trade coming out a quiet period for the same risk..you might be able to put on a bigger position without increasing your risk. Continuing on that thought..if the trade works… you have the same risk…but more muscle behind the trade and more potential for profit.
In forex trading as well as commodity trading…there are only 4 options. Big profits.. small profits..Big Losses..and small losses… If you negate the big losses with immediate stops in the markets.. small profits and small losses will cancel out each other. You will be left with one option, Big profits ( as rare as they are). Due to this reality and the fact that I have seen in the real world for more than 15 years accuracy means nothing. The only thing accuracy means is $$$$$$ to snake oil system sellers or forex signal sellers.
In our trading in our commodity pool our accuracy might be in the low 40% range. I never really even stopped and thought about it. What all I am concerned about is the risks inherent in trading. I know that I do not know the future. I know that we must take every trade. I know that my opinion means nothing. All of this I have learned over 15 years of trading and having experienced colleagues that have been in the field even longer, since 1983. We have seen every mistake possible. The idea that accuracy increases returns does not hold up in the real world of trend following and especially in commodity trading and forex trading.

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Andrew Abraham
www.myinvestorsplace.com

Futures and commodity trading involve substantial risk.People can and do lose money trading.


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