The statement…”Millions of dollars of profit for trend followers and commodity traders” are not a figment of my imagination. In Alpha Magazine in March of 2009 they listed the top 25 earners for 2008. The fact the top 25 are involved in futures trading and more so…trend following

Quoting Alpha Magazine.

#6 Bruce Kovner- Caxton Assoc. $640 million dollars
Putting this into context… Bruce Kovner was a former taxi driver. He is managing $4.3 billion dollars and returned 13% net to his investors… charging 30% performance fee. He started commodity trading with $3000 from his credit cards. He founded his firm with $13 million dollars in 1983

#9. David Harding - Winton Capital Mgmt. $250 million dollars
Winton is a true trend follower. Winton made a large profit in bonds. Winton is managing $13 billion dollars

#18 Kenneth Tropin Graham Capital $120 million dollars
Graham Capital is a long established trend follower in the commodities markets.He runs several funds which earned between 20-52%.

#22 Christian Baha -Superfund $85 million dollars
Christian Baha dropped out of college and was a former police officer in Vienna.Some of his funds surged by 46% on average. Christian Baha is a true commodity trader that is a trend follower.

#24 William Dunn -Dunn Capital Mgmt $80 Million dollars
Bill Dunn has been trend following in his commodity trading since 1974. He has had large returns as well as large draw downs.

What is common to all of these commodity trading success stories… It is very simple… they are trend followers… they have discipline… they have patience….they did not have exceptional intelligence.. ( they were not PHDS)…..and they have compounded their way to wealth.

The fact is trend following is doable.. people have compounded their way to wealth. The next fact it is not an easy task commodity trading to keep on putting on trades when the prior ones did not work. The next fact is most investors leave a manager at the slightest sense of a draw down.
If you really want to be successful and compound your way to wealth… Find a trend following method and stick with it… or find a commodity trading advisor who is aware of risk…and sit tight for years…and let compounding take place.

Andrew Abraham
www.myinvestorsplace.com

Andrew Abraham has been in the financial arena since 1990. He is a commodity trading ddvisor 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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