The Hard Truth About Commodity Trading
The real truth about commodity trading and forex trading is that the most lose money. The reality is probably more than 90% of aspiring commodity and forex traders fail and stop trading. The reasons aspiring commodity traders lose seem to fall into the same and common problems. In 1994 I wanted to really learn how to trade. I associated myself with a college friend who owned a brokerage. I wanted to learn what successful traders did as well as learn what unsuccessful traders did. Being aware of the issues and mistakes non successful traders helped me to evolve. The goal of my blog is to try to instill in those who truly want to succeed that attributes that good traders have and how to avoid the attributes of poor trading.
The fact that so many aspiring commodity traders fail can be found in these common factors.
Commodity Trading is Easy! Commodity Trading is Exciting I do not need to prepare nor worry about when trades do not work.
First of all and I have stated so many times… Commodity trading is the hardest easiest thing one can ever do. We have all have heard stories of the trader Richard Dennis who took $400 to $200 million… only to have blown up there after… Or there is the story of Larry Williams who won a trading contest in 1987 who took $10,000 to $1,000,000. Well Commodity trading is very hard and in my case and my partners an evolvement of learning from mistakes of others as well as our own.
Mistakes such as over leverage, over correlation, over trading , failure of risk controls, lack of patience, lack of discipline and lack of a trading plan have been the demise of all too many commodity and forex traders.
If you want to trade commodities because you think it is exciting, you are in HUGE losses. Truthfully I have learned to become detached and almost an observer of my trades which are all systematically generated. I know that any one trade means nothing and that over time there will be trends and I will catch them regardless of they are up or down.
Not preparing for commodity trading is all too a common mistake. In our case, we have an entire plan thought out. All contingencies are pre thought out because in commodity trading anything can and will happen. If one does not have a thought out plan, than in the middle of trading a crisis could happen.
If you are currently trading commodities or forex unsuccessfully or you have traded in the past and are not satisfied with your commodity trading results I am confident if you are willing to be open I can show you things that I have compounded my money over time.
If you have commodity related questions please, feel free to contact me. I will be happy to answer your questions to the best of my ability.
Andrew Abraham
A.Abraham@AngusJackson.com
www.AJpartnersinc.com
Futures trading involves risk. People can and do lose money
My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I am a commodity trading advisor/co manager of a commodity pool who adheres to the philosophy of trend following. Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets us apart from other Commodity trading advisors and commodity pools is that we are not only concerned about the return on investment but how much risk you will have to tolerate to achieve your goals.
