Quick answer…there is no easy way to make money in commodity trading. Sorry about that. No get rich quick schemes. The fact is once in a while you hear of someone who made a killing in the commodity markets ( Remember Hillary Clinton and her $100k Cattle Trade)..but it is not reality.

What is reality that even when you do make money in the commodity markets it is a challenge to keep it. A select few do keep it and even compound their money. These are commodity trading advisors who have a plan and follow it with absolute discipline.
Too many believe that they can watch CNBC or Bloomberg and be told where the markets will go. Looking for tips is the surest way to lose money! Once a trader realizes that no one knows the future they start to mature as a commodity trader.

Discipline, patience,humility,prudence,perseverance, good judgement, courage and self reliance are the traits that distinguish success. These are not easy traits to have. It is very easy to get disgusted and give up. You have to want it. You have to want to succeed and know you will be doing this for the next 30 to 50 years of your life. This is what it takes. There is NOTHING easy in commodity trading. Experience and time help build these qualities.

Even with all this said… there are those who buy options programs… or black box mechanical trading systems for thousands of dollars who think they will find the Holy Grail. Well that is surely money wasted. I have been trading commodities since 1994, my partners since 1983. It has been a process. It has been an evolution. We have learned all along the way what it takes to be successful. It is hard work. This hard work must be done day in ..day out..and many days..months..or even longer periods of time we do not make money. Then all of a sudden we stumble into some major move in something and make up and profit largely.

This is commodity trading or more so Trend Following. This is how it works. If done correctly potentially on average over a long period of time you can possibly attain mid teen results compounded. This is the goal. There are years which are wonderful and then there are years like this one…lack luster. It is all part of it. Stay disciplined, focused and let the possibilities and time work in your favor.

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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