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.
Fears growing in the Oil Market
It really is interesting to read and watch the activity in the various commodity markets. What is becoming apparent is that Oil traders and commodity speculators are paying TOP DOLLAR ( a nice play on words) for options to protect their positions in the price of crude ( or they are selling naked).The fact is the price of oil is up almost 62% this year. Compare this to the SP 500 or many other markets, this rise in the price of oil is what commodity traders that are trend followers look for. It is really anyones guess if the price of oil is a so called dead cat bounce…or there was a rational reason the price of oil jumped or if it the price of oil will drop. To trend followers it absolutely does not matter. What matters is that price moved and depending on their trend following system these commodity trading advisors took pieces out of the trend. It is quite possibly there can be a retreat in the price of oil if one wants to predict ( heaven forbid Trend followers react not predict) when looking at a simple weekly MACD. True trend followers just follow the price and are willing to give back some of their profits. Compare this to those traders who might not have a plan…and just are fearful who are currently paying alot of money for puts. Currently there is a premium for Dec 09 as well as other strikes. This shows the market is worried. The speculators are betting on lower prices. If I would bet… I would take low risk bets following the trend as a pose to try to predict one. All one has to do is compare the returns of so called Oil gurus..Amaranath.. T Boone Pickens ( which experienced tremendous draw downs) to trend followers who made a fortune following the trends in the price of oil.
Send For Our Free Report- If You Donג€™t Understand This, You Donג€™t Understand Trading: Just fill out the form in the upper left corner.
Andrew Abraham
www.AJpartnersinc.com
Futures trading involves risk. People can and do lose
![[Post to Twitter]](http://myinvestorsplace.com/wp-content/plugins/tweet-this/icons/tt-twitter.png){kind=icon}
