Commodity Trading & Trend Following

My absolute goal is to manage the risks while investing and let the power of positive compounding occur. I am a Trend Follower utilizing multiple mechanical systems trading under different time frames. I can be reached at A.Abraham@angusjackson.com

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.

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, or from Angus Jackson Inc,Angus Jackson Partners. or Man Financial Inc. 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.

Counter Trend Rallies in Commodity Trading

Friday’s action was a wonderful example of counter trend rallies in commodity trading. Ourselves and most other trend following commodity trading advisors are/were long gold, short the US dollar, long some of the grains, long the interest rates and even cotton. Bing Bang… the US dollar rallied. Gold fell something like 4%+…all of our nice profits were either eaten into or gone depending on the entries..

Guess what …this is what trend following is. It is surely not easy. Things are going great..and then you wake up…and all of those wonderful positions are not working…or working less then they had been. For this reason anyone who wants to be invested in commodity trading must have a well thought out plan with risk management in place. Days like Friday…and not that uncommon and can shake an inexperienced commodity trader.

Bottom line…have a well thought out plan.. I do not mean some black box that you do not understand or if you simply allocate to some commodity trading advisor based on last years numbers. Understand …know exactly what you can expect…and even so..you will be surprised…that is why you need to have strong risk measures in place.

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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 money

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