Commodity Trading & Trend Following

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 [...]

Most people want to take the easy way out. They do not want to put in the work. rend Following is really work. Trend following is not easy. It is a mental challenge when trying to trend follow. The only way trend following works over time is with a well thought out plan based on [...]

Last year Meredith Whitney was on 60 minutes and predicted there would be a Muni Bond market crash. She predicted there would be 100s of billions of dollars in losses. This is just another example of why not to listen to so called Gurus. Instead of crashing the muni bond indexes on average are up [...]

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 [...]

The single biggest mistake traders make, is thinking that investing and trading is “Easy.”
They allow themselves to fall for advertisements promising, “You can get rich by trading” or “Earn all the income you’ve ever dreamed of” or “Leave your day job forever
& live off your day-trading profits.” Trend following is not retirement in a [...]

Investors waste countless hours trying to figure out why a market does what it does. There are those that think they have the answer why a particular market went up or down. The answer does not matter. What matters to trend followers is, has a new trend started possibly? Reasons do not matter. What matters [...]

Too many traders get hung up on having to have winning trades. Trend followers realize that most of their trades do not work. Successful trend followers do not care to have these numerous trades that do not work. They know they will make money over time and losing trades are just part of trend following. [...]

These simple ideas that so many do not actually implement. These simple ideas are similar in nature to the 10 commandments. Start with these rules as a basis of a trading plan.
• Trade With The trend
• Cut Your Losses
• Let Your Profits Run
• Don’t Let The Big Profits Get Away
Past performance is not indicative of future performance
Futures trading involves [...]

Some beginning investors or traders who start trend following get upset when they take a loss. As much as trend following is all how one thinks, I am VERY Happy to take a small loss.
OK, I know this sounds weird but the truth if I do not take a small loss and follow exactly my [...]

I have always been thinking through this crisis who will be the lender of last resort. The answer seems to be China.China promised to buy Spanish bonds as well as Portugal and Greek debt. European governments and banks need to refinance hundreds of billions of euros of debt and raise new money. China has pledged [...]