Andrew Abraham

andy-0101 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.

Contact Details

If you are interested in contacting for speaking engagements. Please email me at Andrabr9@gmail.com or call 954 903 0638.

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Risk Warning

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, 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.

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Masters of the Markets

The name “Masters of the Markets” is the name given by CNBC to some of their segments and is almost a misnomer to trend followers. The trend following commodity trading advisors I have allocated to over the years would never even dare to consider to call themselves ” Masters of the Markets” nor even with my experience (and making and seeing virtually every mistake possible) would I consider myself or my colleagues ” Master of the Markets” in our own trend following models. With out the fame and claim these trend following commodity trading advisors have on average earned CAGR of 15% over time. Compounding your money at 15% over time equivalents to a $100,000 account turning to $400,000 over a ten year period or a $1,000,000 account turns into $4,000,000. This is very impressive..this is worthy of calling ” Master of the market”. Even more impressive is what these accounts turn to in 15 years. $100,000 turns into $800,000 and the $1,000,000 turns into $8,000,000.

Maybe the word is being humble or better yet, knowing that as a trend follower you know you do not know the future and have no opinion on any market. This brings me to an interesting point. Last year Sugar was a trend followers profit provider when it moved from $15 to $35. Sugar chopped around from approx May -July and then took off( for who knows what reason or cares). This year ( without caring why or how) Sugar fell from $35 to $25.74. Maybe this is the beginning of another trend. Trend followers do not predict & are willing to go long or short. They are just looking for a directional trend and a low risk bet to see if the trend will continue. Compare this to analysts and experts who pretend to know the future.

To me this is being a “The follower of the Markets”.

I had an interesting conversation with a banker from a well known European bank. We spoke about trend following and was absolutely shocked when I told him I buy high with the possibility of prices going higher or vice versa when I go short. His whole mantra was to be a contrarian and value investor. Clearly there is nothing wrong with this strategy. He furthered the conversation and asked me what I thought about the Yen (to valuate a trade I thought). I expressed I took a trade when the Yen broke out during the nuclear crisis however the trade did not work and I lost approx 1% of my account. Furthermore I told him I expect most of my trades not to work. He was further battled. If I did not expect the trade to work, why did I put it on in the first place. I told him, I received a signal to buy strength, that I have no idea of the future and I know statistically that more than half of my trades do not work. Clearly the next question is how do you make money? I told him about Sugar or silver as an example and the 4 potential outcomes when trading ( Big losses- but I risk no more than 1.25% with a stop immediately in place, Small profits & small losses that cancel each other out…big deal…and the rare big moves with BIG PROFITS). He did not like this idea and told me he thinks the Yen will go down. He told me he has been short the Yen since May 2010. All I thought was how much pain he must of gone through and deep pockets of money.

He wants to trade his opinions. I want to take low risk bets and try to minimize aggravation. We concluded our conversation by him saying I probably have made money over the years. Humbly I said nothing. I know there is no such things as gurus or Master of the markets. I just prefer to compound money over time and stay out of big trouble.

Past performance is not indicative of future performance
Futures trading involves risk. People can and do lose money

Andrew Abraham
Myinvestorsplace.com
AbrahamCTA.com


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