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.
Overtrading in Commodity Futures Trading & Forex
You hear it all the time..A successful commodity futures trader or a forex trader does not over trade. However in reality …what does it really mean over trading? In my definition, over trading can be two fold.
Firstly the frequency of commodity trading ( forex) or the leverage of commodity trading (forex).
Anything done in excess is bad…however as I have seen over the years..easier said then done. Day trader after day trader have blown up do to slippage or even exhaustion. As well I have seen a commodity trader or forex trader have a belief….they are right..the market is wrong …and they take a big bet ( too much leverage)… You can guess who was right ( the market is always right and opinions do not mean anything).
I have seen traders lose everything in over trading and then make a comeback…only to lose once again. The key is to trade with a plan with out over trading. A trading plan where all is thought out.
When I have discussed this with newer commodity or forex traders…I have heard this is boring and not fun. I trade commodities to compound my money. I am not looking for adventure or fun ( My wife would kill me).
The reality is for a successful commodity or forex trader they must have capital, a plan and the discipline to follow that plan. Simple way to think about over trading. A good general never risks all of his troops at the front line at one time, there are always reserves. Think of your capital that way…Do you want to win the battle or win the war?
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Andrew Abraham
A.Abraham@AngusJackson.com
www.AJpartnersinc.com
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose mone
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Because counterparty credit risks remain a concern, clients are more closely scrutinising the margins of their foreign exchange prime brokers
What a cool blog, thx for sharing this stuff.
Overtrading in Commodity Futures Trading & Forex | Commodity Trading & Trend Following - great post, I think this covers most of the questions that I had about forex futures trading
Second step is learning the basics of FOREX trading. If you already found your FOREX broker, you will easily get all data from its web site or user support. There are a number of articles and websites dedicated to FOREX basics in the World Wide Web. All you need to try and do is simply google for ג€forex trading basicsג€ and youג€™ll realize everything you needed and even more. This step shouldnג€™t be underestimated, as a result of attempting to trade without even understanding how the market works isn’t solely terribly risky, it can also become boring very soon.Third step is regarding education. FOREX trading education isn’t just like any alternative education you almost certainly have gotten in your life. FOREX market is very chaotic, therefore is that the education - there are not any mounted rules and all time laws, it’s unstable and dynamical. Thus, to be on the prime you must learn new things about FOREX often and constantly. Try to scan as several books, articles other tradersג€™ opinions as you can. The a lot of you learn, the a lot of educated you will be. And with smart FOREX education you will be in a position to form very subtle and effective trading strategies.Fourth step may be a final one; a minimum of I consider it to be final one. To achieve the successful results in the FOREX market you need to develop your own strategies. While you are learning youג€™ll be happy with known strategies and in all probability even FOREX signals. But true goal which leads to successful FOREX trading is to develop your own strategies. Not one strategy, but to follow the market day by day, developing new strategies and improving those that began to fail. And this comes not only to the trading strategy (this part is clear), however additionally to the money management strategy (this half is often underestimated). While you gain expertise in trading youג€™ll inevitably build such ways that can work your trading style, you character and your life as best as they can. And after that, trading can become a real pleasure, that will eventually cause your monetary freedom.
Forex markets - trading internationally-Forex market trading is trading cash, currencies worldwide. Most all countries around the planet are involved within the forex trading market, where money is bought and sold, based on the worth of that currency at the time. As some currencies are not worth a lot of, it’s not going to be traded heavily, as the currency is price a lot of, additional brokers and bankers are going to choose to invest in that market at that time.