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.
Agriculture Trend Following
I do not need to tell you how hot this summer has been. Just using logic you can imagine what it has done to the crops that are grown around the world. Without putting my opinions into my trend following trading methods… it seems the prices of the grains are JUST TOO CHEAP at these current prices. Besides the grains you have cotton moving up as well as sugar has been moving up. Coffee prices may be in for a rally to beat even this summer’s surge if the La Nina lives up to some of its predecessors. What am I saying..simply we might be at the beginning of some major moves in all the agricultures. Regardless if I my opinion might be right…as a trend follower price action will pull you into these moves. I am long cotton…sugar..as well as some of the grains. The key is to take low risk trades. My systems only risk a max of 1% on any trade. If the risk is more than that I just step aside and wait for the next potential trade.
The key to compounding your way to wealth is playing defense. Risk per trade..Risk per sector..( ie..I will not take any new trades if my total risk in a particular sector is greater than 5%)…Total open equity risk. Thinking in terms like this with a solid trading plan put the odds in your favor. You do not need to be Jim Rogers too see the writing on the wall.
Follow the trend …have a plan… manage the risk… have discipline and patience to let the plan work out over time
Andrew Abraham
Andrabr9@gmail.com
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money
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