I have seen countless times with inexperienced traders the fear that can come about. The reason of this fear is due to uncertainty in any particular trading situations. These traders do not have a plan. They get themselves into a situation in which they are losing money very quickly. Then there is the situation when one is scared and is stimulated to think. The reality is man is a lazy creature. He wants to be told what to do…how to invest and how to make money.

People do not want to take responsibility of their choices. As long as the markets are running smoothly there is a tendency to take things for granted. There is the assumption the Stock market always goes up. There is no risk when investing in the stock market. There is no risk in purchasing real estate. Home prices never go down…yada..yada yada… Then we have years like last year that all assumptions are off the table. What is my point.. As a commodity trading advisor. I am SCARED every day. I think about what can kill my career that I have invested a great deal of my life. I do not take any position for granted. I have no preconceived thoughts.

I believe anything can happen. All the people that did not believe the stock market can go down were rudely awakened. Possibly those that think the issues have been resolved might be rudely mistaken again. This is the point of when you trade commodities.. Believe anything can happen. When you have a plan…you will not be in a position you will be scared. When the trade does not work…you are out. There are no second thoughts. You are out.

If you receive a signal to buy the same commodity again…you just do it. Nothing to second guess. You want to follow your plan..or if you allocate to a commodity trading advisor… you want to make sure that they follow their plan they explained to you. More so, be prepared for Draw downs they will surely happen as the sun shines every morning. If you have a plan and follow it with discipline and patience, over time you stand the possibility of compounding your way to wealth.

Andrew Abraham
www.myinvestorsplace.com

Andrew Abraham has been in the financial arena since 1990. He is a commodity trading advisor and co manager of a Commodity Pool. Since 1993 Andrew has been a proponent of quantitative mechanical trading programs. Andrew's major concern is not only total return on investment but rather the amount of risk that one would have to tolerate in order to achieve returns He focuses on developing quant models that encompass strict risk adherence and correlation. He has been a speaker at conferences as well as an author of numerous articles. Andrew has spent years researching ideas that have the potential to outperform indices as well as maintain fewer draw downs.

Visit Angus Jackson Partners (http://www.angusjacksonpartners.com) Contact: A.Abraham@AngusJackson.com (mailto:A.Abraham@AngusJackson.com)

© 2009 Copyright Andrew Abraham - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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