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.

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

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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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The Joys of Buy & Hold versus Trend Following

Yesterday we witnessed the joys of buy and hold. You are at the mercy of the markets. When they go up you are happy…when they act like they did yesterday you are frozen in fear. Wouldn’t it be a little more emotionally easier if you had a plan in order to avoid the fear. This is what trend following tries to do when you trade with a plan. Do not get me wrong there will always be draw downs and extended periods in which you do not make money but compare this to gut wrenching drops. My methodologies for trend following are simple and robust. I do not risk more than 1.25% on any trade and avoided yesterdays gut wrenching 6% drop. However I can have numerous of these small losses add up and cause draw downs but I am not at the mercy of the markets.

I was long the Nasdaq several weeks ago and simply the trade did not work and I took my small loss and moved on. I did not hope or pray it would come back. Need to take the emotion out of it. Nothing has to happen. Nothing has to only go up. No matter what strategy you use you will have draw downs and losses. For example last week when there was intervention on the Yen probably most trend followers took a nice hit…I did. The only way to avoid losses or whip saws is not do anything nor trade. It is a fact of life losses when trading. It is as simple as breathing in and out.

I have no idea where the stock market is going nor do I care. I have ease of mind and no greed. A simple way to avoided yesterdays waterfall was use a 200 day simple moving average on the index. If you were below the moving average it would have been time to step aside.

For most of the week buy and holders experienced a very rough period compare this to trend followers who have had a good week following gold, SF and the interest rates. Trend following is not easy nor retirement in a box…but you trade with a plan…you try to address the risk and try to mitigate them. No one ever promises you will be successful however.



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