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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Hitting Home Runs When Commodity Trading

I have to apologize as I do not know that much about base ball but would think hitting a home run in baseball in most cases is rare. More so when commodity trading, hitting a home run is VERY rare…yet they do happen. An example last year was cotton which went from the 70 range to over 200 very quickly( albeit with alot of volatility). One must understand that trading commodities is a zero sum game. When someone hits a “Home run” another market participant is striking out and losing money. Trading commodities entails using leverage. This leverage can as much at times help you to garnish profits, this leverage can work against you very quickly. This is why you need a well thought out plan based on a robust idea with a heavy dose of risk management. Most market participants lose money. You do not want to be one of them.

Now that I expressed how easy it is to lose money…some market history does show there are tremendous gains for those that are patient, diligent and have reasonable expectations. More so just because they occurred in the past does mean they have to occur in the future. My point is historically they did…but past results are not indicative of future results.
All one has to do is look at the soybean market in 1972-1973. I have no idea why it happened but within 3 months the market went from approx 500 to 1300. Fortunes were made as well as fortunes were lost by those fighting the trend or not having a plan. Moves like this happen…albeit infrequently…

More interesting during my career I have seen traders expect these home runs on a steady basis and when they don’t occur, traders give up. Trend following is a life time strategy for me. I have no idea what market will move if at all or if any trade will be profitable. I simply grind it…take every trade and put myself into a position if there are these ” home runs” The Big one may or may not occur this year or even next year. As a trend follower with a plan…it is worth the wait. Conversely a heavy warning for those who do not have a risk plan…these big moves can be devastating if one is on the wrong side of one of them or refuses to take a loss. One of my favorite books was ” How I lost One Million dollars trading commodities”. Do not ever under estimate the risks when trading.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (”FOREX”) IS SUBSTANTIAL
Andrew Abraham
Myinvestorsplace.com
Abrahamcta.com


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