Commodity Trading & Trend Following

Everyone is searching for certainty when they invest. Trading has to be one of the biggest challenges as far as making money. Too many times people put on a trade and believe( insist) it has to work. Successful traders and trend followers think oppositely. They think how much will this trade cost me to see [...]

Single Indicators are not the Complete Answer When Commodity Trading
Too many commodity traders search for these magic indicators that they think will lead them to their holy grail. Commodity traders speak about leading and lagging indicators. The leading indicators are those that “Predict”. These in my opinion are a complete waste of time. I have [...]

The Advantages and Disadvantages of Allocating to a Commodity Trading Advisor
First of all allocating to a commodity trading advisor does not necessarily mitigate the inherent risks in commodity trading. Personally after allocating and investing with commodity trading advisors for years there are only a small group of commodity trading advisors that I have allocated to [...]

It seems the newspapers always have reasons why markets moved either up or down. People feel better when they have reasons. Had an interesting discussion with my wife regarding this. She told me the reason that silver went down( according to the newspaper she read) was because China was raising interest rates. My response was [...]

Impulsive trading by commodity traders has to be one of the biggest mistakes that commodity traders make. One day they are long then the next they are short. These commodity traders do not have a time frame nor a plan. They do not even know which markets they are trading. They trade impulsively or based [...]

I was contacted the other day regarding my blog on trend following & commodity trading and was told the ideas I try to put forth are not interesting. No one wants to know about psychology of trading, they want to be told exactly what to buy or sell in order to make money. Hearing this [...]

One of the most important attributes of commodity trading and trend following is ” TIME”. Really time is such an important ingredient of successful commodity trading. Too many are focused on trying to find that ” perfect indicator or system”. What commodity traders need to focus on in my opinion is a robust mechanical trading [...]

The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty
Winston Churchill
Never cut what you can untie.
Joseph Joubert
Abrahamcta.com
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Last week will be remembered for commodity traders and trend followers for years and probably decades. There is a huge misconception out there that even the savviest investors in commodities can not lose money. Well, anything can happen and anything does happen. That is why it is so important to have risk management and a [...]

Yesterday was a historic day in the commodity markets. I am sure that commodity trading advisors and trend followers will remember yesterday for years to come. In one word the commodity markets yesterday were BRUTAL.
No one ever(who is honest) said trading commodities or trend following is easy. Commodity trading is not buy a system or [...]