Commodity Trading & Trend Following

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 [...]

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 [...]

Sure, there still exists safe havens. All one has to do is look at the recent action of the Swiss Franc. It imploded from 140 to Fridays 113. That is a big drop in a very short period of time. Is gold next or is it going to thousands as many gold bugs predict. No [...]

Non stressful Trading
Maybe it is a misnomer non stressful trading but it really hit me today. I am on a marathon tour of speaking to potential investors and IBs hoping to work with to raise money for my CTA. I have heard repeatedly how both parties are stressed from trading. I thought about myself and [...]

Sometimes high goes higher and low goes lower. This is the basic concept of trend following. We do not know the future. Most trades when trend following do not work but in those rare times…high goes higher. The case in point is Gold. Many trend followers including myself have been long gold on and off [...]

Consumer Confidence had its biggest point drop since October, 2008. The Conference Board Index came in 44.5 from a revised reading of 59.2. Consumer spending from yesterday’s report showed an increase in purchases for the month of July.
The Case-Shiller Index showed a drop in property values, in 20 cities, of 4.5% from a year [...]

Failure to plan, is planning for failure is an old saying. It is appropriate for all aspects of our lives not just trading. Trend Followers succeed because they have a plan. This plan focuses on risk management along with discipline & patience.
To better define the statement that Trend followers succeed…is that they succeed over time. [...]

Why do Investors Fall for Scams?
Is it greed or simple lack of experience? Investors have experienced terrible scams in recent years. We all know about the Madoff escapades, but South Florida residents have their own scam artists. Nevin Cohen is a flamboyant and interesting character who defrauded his trusted investors to the tune of close [...]

Who do you listen to you? Do you want to listen to Gurus or have a plan & think for yourself. Personally I prefer to have a plan, follow it exactly. I know that I, nor anyone else knows the futures. Following Gurus can be painful. Look at these predictions of the guru Barton Biggs.
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It does not take Barry Ritholz to state Buy and hold is dead, every trend follower knows this.
Great Read by Barry Ritholz on how to make money
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (”FOREX”) IS SUBSTANTIAL.
Abraham Investment Management

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