Commodity Trading & Trend Following

How to make money in a downward market. This is not my opinion. Watch this video. I have never heard of him before but it makes sense. You make your mind up.

Past Performance is not indicative of future performance
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There were four thought of Safe Havens this year. Swiss Franc, Gold, Yen and US treasuries. Two of these have fallen dramatically. You need to understand everything has risks. There is no free lunch. There is really no place to hide. Even leaving money on deposit is not safe. Who knows what will happen to [...]

Do not be like this Deer frozen without a plan. No one knows the future. Not CNBC nor Bloomberg. Have a plan, have risk management do not be a deer frozen without a plan.
Disclaimer- Even with a plan there are no assurances that losses will not occur. There are always draw downs and extended periods [...]

In todays markets we are seeing selloffs in virtually every market. For trend followers this has not been an easy month. Many trades are not working and are being exited. They are being offset by other markets and trend followers with a plan just keep on trying to put on low risk trades to see [...]

Andrew Abraham, Abraham Investment Management
You can go to google translate. No I do not speak Sweedish but was asked my thoughts from a Hedge fund magazine in Sweeden
Nedgradering av USA var varken förvånande eller oväntad. Om vi skulle bete oss på samma sätt med vår hushållsekonomi hade vi för länge sedan varit hemlösa. I slutändan [...]

Last week I had a marathon of meetings with investors, introducing brokers and FCMs. A common question came up, “How was last month? I had to chuckle because as much as Aug 2011 was a good trading month it means absolutely nothing. This question came up not just from individual investors but directors of managed [...]

For those of you who think trend following is retirement in a box or easy…it is not! Do you have what it takes to follow a systematic trend following plan without giving up when you have 8 trades or more in a row do not work? Do you have what it takes when you have [...]

I speak all the time that one needs a specific plan. It is not as complicated as it seems. The complicated part, is following it during the ugly draw downs or long periods in which nothing happens. One needs discipline and patience. This is an acquired attribute. I personally learned it by realizing that money [...]

I was recently forwarded a short piece from Richard Russell called his “New Normal”. Richard Russell understands the realities of the markets and trading. He is the product of the Depression Generation. His Dow Theory letters have given countless investors insights on how to successfully invest over the decades.
1 — Be a skinflint. Cut down [...]

Admittedly I am biased and believe that trend following has to be one of the best strategies for investors in order to compound money over time. The reason I can say this I have learned how to think when I invest. There is no magic system nor magic manager. It is all following an exact [...]