Commodity Trading & Trend Following

When asked what is my time frame in trend following I always seem to get the same look. My answer is 30 to 40 years. Most do not understand my answer. My answer is based on the concept of compounding my way to wealth. When trend following with a plan my analogy is a marathon. [...]

Yesterday Corn prices rallied to a fresh 23-month. Corn is joining the party of upward movement in almost all the grain complexes. Not that I know anything about the grains, I do know that price action has signaled a buy for me as a trend follower. Wheat has been moving due to the situation in [...]

It always shocks me that so called investors run for the doors when a commodity trading advisor has a draw down. The fact is as much as they are not palatable for investors to go through they are as normal as breathing out. I look at draw downs of successful long term commodity trading advisors [...]

This word Double dip seems to be on so many investors minds. The idea of the double dip is not a dip in the pool but rather an another dip into a recession or worse a depression. Looking at the facts and not being pessimistic, the housing market is showing no signs of a recovery [...]

For the last rolling 24 months it has been tough in the commodity trend following community. A lot of hot money flowed in after the average returns of 20% of 2007 and 2008. This hot money has left and many commodity trading advisors have seen assets under management plunge. Gold cooled until recently…and crude oil [...]

There was a recent article in the wall street journal asking the question, “Has The Black Box Broken? This is not something new to long time commodity trading advisors and trend followers. I have seen these articles over and over again. If anything it encourages me to even allocate to more commodity trading advisors. [...]

Everyone would love to know what would be the outlook for the commodity markets and commodity trading. After a roaring 2007 and 2008 it seemed that commodity trading advisors would know no limit. The stock markets collapsed in 2008 and fear was rampant through out the world. During the turmoil when virtually every strategy lost [...]

There was an interesting article online of Forbes discussing Billionaire predictions that I glanced through this morning. My immediate thought was..Do these Billionaires know something that we don’t? They know better than us? What I expected was they had a variance of opinions as we all do…as well as they are optimistic.. Really they are [...]

I am not a gold bug or an end of the world fanatic… but in all seriousness…Can Gold be the next currency? Honestly…As an investor, I became very concerned about having my assets denominated in U.S. dollars. Even if I was clever enough to denominate my assets in other currencies…the fact is they are all [...]

Trend Capture
You do not hear that often the word trend capture in commodity trading. Most of the time it is called Trend following. The difference however depending on how the commodity trader or commodity trading advisor trades there are times big draw downs occur as well as big profits are given back in trend following. [...]