After all the years I have invested in trend following…. it is a way of life…
Trend following is a philosophy…
Trend following is a methodology
Trend Following is a Life time strategy!
Just on a simple note…look at the SP 500 over the last 10 years…and compare to any long term trend follower. Numbers do not lie. [...]
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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.
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Remember when everyone is bullish you should start to get nervous, maybe now is that time. It seems all the bears went into hibernation. There seems to be extremes in bullish sentiment readings. In most cases of trend following volatility usually represents market noise. My trading methodology uses a volatility stop. I measure volatility and set my stop loss by using the average true range. I use a multiple of the average true range and subtract from the entry price. I have a defined exit and get out [...] The best traders have no ego nor anything to prove. There is no emotion in any trade and the best traders get out of losses quickly. The best traders have a stop loss set, and more importantly they have the discipline to stick to their plan with a perarranged stop loss. With the ECB buying bonds again does this mean the sovereign-debt crisis is surfacing again? Not trying to read the tea leaves and just let price dictate buy and sells, the yields spreads between Irish and German 10-year bonds ( a good measurement of the perception of the risk of Irish bonds) hit a record [...] Again and again we are told there is no inflation. The fact is numbers do not lie. Look at these yearly increases Sure if you listen to many of the news services they are saying inflation is not an issue. Well all one has to do is look at Cotton. A 15 year high on cotton would seem inflationary. At the same time the grains are moving due to shortages and bad weather. Continuing the story with [...] September began with extreme negativity and pessimism for both the economy and the stock market. Investors that traded there opinions ran to buy long-term Treasurys and sell off their stock holding. In the short run this can be an error and their timing couldn’t have been worse. This happens time and time again when trading [...] The trend is your friend is the mantra of most successful traders & commodity trading advisors who utilize some form of trend following strategy. Regardless if the trend following is based on moving averages, Donchian break outs or Bollinger bands trend following has been and will be a Life time strategy of successful investing. Between the recent recession and the housing crisis most Americans have experienced wealth erosion. The fact from April to June American’s net worth have fallen and this was the first quarter since 2009 this had occurred. Prior to this net worth had risen slowly for four straight quarters. Basically there has been a stagnation of [...] |
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