The question always comes up what is riskier, the Stock Markets or commodity trading? Firstly both are, but what I have an issue with is that the initial response when one hears that I am a commodity trading advisor or involved in commodity trading is that is RISKY. How many people forgot how they listened blindly to CNBC or Bloomberg during the tech bubble and lost their retirement money with Enron, Worldcom and countless other stocks. It seems people want to watch Jim Cramer, the weather forecast for crops, what Bernanke will say to think they will find their way to investment success. Even now the talk of green shoots. People want to predict. This is what makes risk. People that try to gather all the information and make their analysis without regard to position size… where to exit…etc.. ..are totally increasing their risk. Successful trend followers on the other hand focus soley on the risk. Trend followers can be involved in commodity trading, stock markets, currencies, bonds or individual shares. By now if you have been reading my posts you realize that prediction is pointless. No one knows the future. Successful commodity trading advisors and trend followers know that only thing that is going to get them in a trade is some type of price move to the upside or downside. Not what Bernanke might say…Or what Opec might do. Cold hard facts… PRICE MOVEMENT!. The goal of the successful commodity trading advisor or trend follower is simply to jump on board, make themselves available for a “potential” move. Again no predicting, and more so..successful trend followers know that most of the trades will not work. The successful commodity trading advisor or trend follower does not care. He does not put any mental baggage on any trade. The trade either worked or did not. The successful commodity trading advisor or trend follower does not need to take BIG bets.. but a small percentage of his/her account (less than 1%) to see if any trades works or not.
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