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Dennis,
In trading stocks they say diversification is the key to long term
success, this has been proven to be true according to all the reports in
the industry magazines I've read. In commodity trading there are less
than 40 different markets to diversify in (as compared to the countless
number of securities), and to make it harder to diversify, most of the
commodities are price-action related to one another.
So, in commodity trading, in order to truly diversify your investments
dollars you have to diversify your portfolio with the talent and trading
savvy of experianced traders. I admit it sounds shaky and very scary,
but it's true. Listen-the best traders are those who specialize in a
certain market (and maybe another related market). You see, even though
traders like myself have and can trade decently from time to time in
every market due to the nature of our business, each market is
different, each market has it's own distinct personality which can
change from not only day to day, but minute to minute. Only a market
experienced and savvy trader will recognize some of these signals.
My firm has many proffessional traders who trade the markets for their
daily bread, even though these people are in the "one out of ten"
percentage who make money trading the markets, they still realize that
it's important as well as wise to have their spare investment dollars in
the hands of other trading proffessional who trade markets that they are
not experianced in. True Diversification in Commodity Trading is a
Diversification of Talent rather than a diversifaction of markets.
Unfortunatly, truly good traders are hard to find. In todays available
menu of "so called" Commodity Trading Advisors (a title and license any
person, regardless of experiance or skill can get) very few can repeat
the the performance they present in their track record. Don't ask me
why. I've learned the hard way that todays market maven is tommorrows
forgotten trader. The key is to look at the trading style instead of
the track record. Don't Believe the Hype!
On another note, if you are a consistant trader showing continuous
growth, we would like to talk to you. We recruit good traders and make
them CTA's. We help these traders not only get licensed, documented,
and authenticated, we also handle the marketing and equity raising as
well.
Paul Brittain
Dennis L. Conn wrote:
>
> Hi Charles,
>
> NEVER trust ANYONE ELSE to handle your money! If you're not sure what to do
> with it, then take whatever time is necessary and LEARN! I don't know if
> you're actually acquainted with any of those "savvy traders" you mentioned,
> but I have a hard time imagining such a person allowing any portion of
> their account(s) to be 'managed' by someone else. The only people who've
> ever offered me that advice also earn commissions for setting up such plans
> - every other source of information I've found has urged the opposite. But
> if you find someone who comes highly recom-mended by their longterm
> clients, let us know; you should receive an award for discovering a new
> species!
>
> Best of luck,
>
> Dennis C.
> dconn@xxxxxxxxx
>
> ----------
> > From: charles meyer <chmeyer@xxxxxxxx>
> > To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> > Subject: GEN: MONEY MANAGERS?
> > Date: Friday, June 26, 1998 4:26 PM
> >
> > It is not uncommon for even very savy traders to diversify and let other
> > money managers handle a portion of their portfolios. My position on this
> > is that unless a money manager can deliver both consistent and superior
> > returns--clients are working for the money manager and not the other way
> > around. Stated another way, it's a better deal for them than it is for
> the
> > clients--and at no risk. I came to this conclusion after a slightly
> > negative
> > experience with a couple of managers. (Lost very little--didn't make
> > money)
> > I would be grateful if anyone could share with me who they use? Has any-
> > one found a good manager through the use of "Nelson's"? We all know
> > the vast majority of track records are mediocre so the search is
> > difficult--
> > along with insuring they stay on target. Thanks for the favor of and
> > replies
> > and feedback.
> >
> > Charles.
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