Letting your profits run in commodity trading is one of the most basic attributes of trend following. Commodity traders that adhere to this tenant put themselves in a position of potential long term success. The problem is that many new or inexperienced commodity traders do not have either the patience or discipline to let profits run. They are worried that the trend might turn around or that they will give up profits. This is one of the major reasons commodity traders fail. When one uses a mechanical trading system ( if they can follow the signals) it forces the commodity trader to follow the trend...and let profits run. The basis of a well thought out plot or  mechanical trading system is: The Trading System forces you to trade with the trend. When you enter a futures trade, there are always 4 possible outcomes. <img src="http://www.angusjackson.com/newsletters/pix/coins.jpg" alt="" width="200" height="150" align="left" /> <strong>1. A Small Profit 2. A Large Profit ( rarely) 3. A Large loss 4. A Small loss</strong> Using a protective STOP, a mechanical trading system reduces the possibility of a large loss. The use of trailing stops may help lock in a small gain or a small loss and might allow you to participate in a large gain. The key is trying to minimize the likelihood of a large loss. To participate in a large gain is obviously the goal of every successful trader. Large gains in commodity trading are necessary in order to achieve the desired return for your portfolio. Most commodity traders but, find it extremely hard to remain in their position for a large enough go in either direction. This is because our minds are not wired to be successful traders. Why is this? This happens because, emotionally, we want the second gratification of taking small gains. Again...this is the one of the surest ways to fail as a commodity trader. Even though market history tells us that many trends have gone farther than anyone probable or even imagined, many successful traders today still tend to second estimate what they know to be right, for dread of losing any gain. Depending on ones time frame, fortunes could have been garnished in the grains...silver... or how about last years Crude trades ...both on the long side and the small side. Taking small gains eliminates the opportunity of participating in the extended advance or decline, which is what results in a large gain. A good trend following system forces you to stay with the trend. It does not anticipate market direction;it follows market direction. Mechanical trading systems grant your exit point. Knowing when to exit based on the system's historical data enables you to follow trends to their fruition. In the uncertain world of futures trading, nothing makes more sense than to follow the trend and let your profits run. That is if that is your goal. Some public just want excitement. You choose... If you truly are seeking long term success in the commodity markets...Let your profits run. If you have commodity related questions delight, feel free to contact me. I will be pleased to answer your questions to the best of my ability.

Andrew Abraham

A.Abraham@AngusJackson.com

www.AJpartnersinc.com

Futures trading involves risk. Public 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 restricted 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.

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