In Commodity trading there are countless answers that need to be answered. The good news…is you get to choose…the terrible news is that most commodity traders, stock traders or even forex traders never think of all the questions they need to answer and do not develop a trading plot. If you truly want to make it in commodity trading you need to develop your trading plot…or you have another choice…look to invest with a commodity trading advisor in which you know his/her methodology and how they approach risk.

Regardless of if you want to trade on your own ( preferably with a trend following systematic approach) or allocate to a commodity trading advisor or even groups of commodity trading advisors you need to be aware of time frames and preferably diversify them.

The thought of time frame generally refers to the length of time you would expect to hold the trade. One can trade intra day..( & run up large commissions and encounter slippage) or small term…mid term…long term. More so how you do really define each of these periods is up to you?Again the good news is you get to chose. It is all up to you…BUT YOU MUST THINK ABOUT IT. If you don’t you will become another statistic of failed commodity traders.
No one can make these decisions… and you must determine what fits your personality. You must trade in which it is carefree.. Yes.. I truly mean carefree…

I know that I do not know the future..(contrary to CNBC or Bloomberg). I know that even different time frame charts look different.

In person one of the things that works for me is to simply spread it all out and diversify.
What I do is allocate to other commodity trading advisors that have different time frames… or run multiple time frame models…This gives me some diversification from one of the models I am trading with my colleagues….More so after almost a combined 100 years of seeing virtually every mistake ( between me and my 2 colleagues)… one of the models we trade is multi market.. multi system…and multi time frame… with strong risk management from the trade level…to the sector level…and to the whole portfolio level.

You need to question yourself …do you really want to have a chance of success in commodity trading or forex … If the answer is yes…then develop a comprehensive plot..realize you need to include a time frame that matches your personality and work framework…Or you have the option of investing with a commodity trading advisor in which you know what he/she is responsibility…and allocate to them…

Andrew Abraham
A.Abraham@AngusJackson.com
www.AJpartnersinc.com
www.myinvestorsplace.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.

Article Source:http://www.articlesbase.com/currency-trading-articles/time-frames-in-commodity-trading-forex-trading-1400405.html

Tags: european currency, money currency, foreign currency exchange, canada currency, canadian currency, e currency, south african currency

Tweet This Post

Related posts

• No related posts.