Commodity Trading & Trend Following

Do not confuse the wording simple ideas for trend following with the connotation that trend following is easy.
Trend following has to be the hardest thing for a trader to do. You will have countless losses and long draw downs. Trend Following is a marathon. If you are looking for get rich quick…good luck. It [...]

Too many traders and trend trend followers focus on short term results and miss out in the greater picture. Trend following is a marathon. It is not a get rich quick overnight. Some beginning trend followers experience a loss or a bad week or month and then state ” Trend Following is Dead” (I should [...]

Dollar Tree Shares the discount retailer have racked up gains of about 50% this year vs. a roughly flat performance for the S&P 500. The discount chains have been one of the top five groups for months. It is clear from a fundamental level as well as a trend following level.
When we trend follow [...]

When we follow a well thought out trading plan when trend following, we can not pick and choose our trades. We must take every trade as we do not know the future. If we think we should pick and choose our trades this would mean that we know the future. As every rational person knows, [...]

The only certainty in trend following is uncertainty.
Due to this constant uncertainty it is imperative to manage the risks. We are surrounded by risks. Successful trend followers know that we do not know the future nor ever portray to. Given the fact we are dealing in uncertainty we have no choice but to be [...]

Markets can only do several things.
Markets only go Up, Down or Sideways.
This is it… No one knows the future. Why is it so difficult to listen to the market without putting our opinions on it?
Fear and Greed!
Trend following entails following the markets when they go up as well as following them when markets [...]

Trend Following works on all time frames and all markets. When trading the stock market you want to make money. You do not want to be right. The idea I suggest is buying and selling the strongest & weakest shares if you can put on a low risk trade. You always need to trade with [...]

There are many gold bugs who simply buy gold without a plan. They might think the world’s financial markets are ending (they might be right) however I believe everyone who invests needs an exact plan to follow. Know exactly where to buy…how much to buy…where to sell with a loss and where to sell with [...]

A picture is worth a thousand words. Bianco Research LLC presents this chart of almost 200 years of interest rates. As a trend follower it is clear to see opportunity on the horizon.

We are at a major historical low only seen twice for almost 200 years. Considering all the printing of money through out the [...]

Too many people are so caught up in being right they lose focus on making money. When trend following we know we do not know the future. Trend followers are flexible and really have no opinions. They are neither bears nor bulls, rather oppurtunists. Trend followers will go long or short. Trend followers believe for [...]