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.
Over Leverage When Trend Following
Even though today was a Sunday I was very busy discussing with industry financial managers my new upcoming book, The Bible of Compounding Money- Investing with World Class Money Managers. I had one interesting conversation with an emerging manager. He told me he was throwing in the towel due to huge draw downs. The fact is that the majority of new emerging managers as well as traders blow up due to one reason…Over leverage! When I speak about 1% risk per trade, many scoff and think I am a pansy. The reality is during good periods…these managers and traders who take on excessive leverage do GREAT! However during tough periods…They go out of business…
My words of wisdom, Simply is under trade. There is a draw down out there that can stop you from trading. Trend Following is really never easy. However it is a marathon and you need to pace yourself and manage the risks when investing.
Win a copy of The Bible of Trend Following. All you have to do is Retweet and Follow @TrendFollower9 and place #trendfollowingmentor on your post. Contest ends Feb 24 2013
Past Performance is Not Necessarily Indicative of Future Performance
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