Commodity Trading & Trend Following

Yesterday I had an interesting conversation regarding courage and knowledge in commodity & forex trading. If you have been reading my blog you probably know my favorite two words for success in commodity trading are…Discipline and Patience…
However the idea of courage & knowledge puts a new light on the subject. The idea of knowledge, one [...]

If you look in any commodity or forex publication you will see advertisements for mechanical trading systems. This is an area in which commodity traders as well as forex traders seek to find their holy grail. Well in reality this will not happen with any mechanical trading system on the market. However mechanical trading systems [...]

In my years of experience trading commodities, it seems the only time mental stops should be used is by a large trader who doesn’t want his open stop sitting in the market for the fear that someone might run their stop. For most other traders having mental stops is a serious flaw in their [...]

The reality is there exists a great deal of correlation between trend following commodity trading advisors… But there are always a difference in their returns…Many times because I have managed accounts I see a great overlap. It seems virtually every commodity trading advisor had the sugar trade. The sugar trade was a perfect setup. It [...]

Too many books and blogs seem to make commodity trading and forex trading seem so easy… The truth can not be further from this…Successful trading is so hard… It is a truly a mental battle..There is no easy money in commodity trading….. You earn it..( that is if you truly want it ). There is [...]

In Commodity trading there are countless answers that need to be answered. The good news…is you get to decide…the bad news is that most commodity traders, stock traders or even forex traders never think of all the questions they need to answer and do not develop a trading plan. If you truly want to succeed [...]

There are many reasons commodity traders or even stock market investors fail.
Read this email that was sent to me. This is an example of one of the main reasons for failure.
Remember the charts condense all the economic, political and emotional expectations. And yes, every stock market movement is geared solely by expectations, not the [...]

The question is… Can trend following end? First of all… anything can happen and it will happen. However as a long time trend follower, in my opinion there are numerous reasons why I do not believe trend following can or will end. The question came up when I was in a meeting with an institutional [...]

As I have repeatedly stated… commodity trading is the easiest yet the hardest thing one can ever do. Too many aspiring commodity traders or forex traders search for the holy grail. They search for indicators…mechanical trading systems or basically the answers.
The only answer is, simple ideas traded over diversified markets with multiple trading systems with [...]

Successful commodity traders and forex traders know there is a random distribution of results of winners and losers. The majority of commodity traders and forex traders use some type of mechanical trading systems. The reason they use a mechanical trading system is that they can test out their plan and see the historical back tests [...]