Commodity Trading & Trend Following Mechanical Systems
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One of the biggest differences in commodity trading is that many successful commodity trading advisors use trend following mechanical systems. Of course there are other commodity trading advisors that use pattern recognition …counter trend as well as basic fundamental analysis to base their decisions. However in my opinion, when a commodity futures trader uses a mechanical trend following system they put themselves in a position to capture rare large moves. The success of commodity trading comes from capturing these rare large moves with proper risk management. This is the key to compound money over long periods of time.
Read the full article: http://myinvestorsplace.com/2009/07/14/commodity-trading-tre...
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