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.
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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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