Yesterday I had an fascinating conversation regarding courage and knowledge in commodity & forex trading. If you have been reading my blog you probably know my favorite two words for success in commodity trading are...Discipline and Patience... But the thought of courage & knowledge puts a new light on the subject. The thought of knowledge, one can buy either by learning or buying...But does that really make them a better commodity trader? But...I think it gets to a point of having too much knowledge. It really boils down to if the price moves up or down. With all the knowledge in the world..if the price does not go...oh well..So in the small of it.. I am not a big believer of increased knowledge will increase trading consequences. But there must be the basic knowledge of risk management...having an rigorous trading plot ...and this comes from having a mentor....or simply experience. The other word courage is a different tale. You can not buy it...maybe you can learn it...but I assume you either have it or not. You can not make it lacking courage..Maybe there is a fine line between discipline and courage..The fact is that big moves are rare and if you do not have the discipline or courage to stay with the rare big moves...you probably will not make it as a commodity trader. This is one aspect of courage or discipline... the other aspect is that one must have the courage or discipline to exit a trade that is not working. Alas most commodity traders are not interested in these vital issues... They seek new indicators...or mechanical trading systems etc... but one of the real keys to success is how you the trader or if you allocate to commodity trading advisor really reckon...When I allocate to other commodity trading advisors...this is what I seek.. I want to know how they trade...but more so how they reckon...I do not believe there is any secret system...it all boils down to when there is one of these rare moves... how does the trader reckon...do they have the courage...the discipline...the patience..

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.

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Tags: currency exhange, forex, forex day trading, forex trading system, currency exchanger, forex trader, currency convert

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