Hi Guys, Kato here
In this current economic wasteland I thought I'd conduct a bit of an experiment...
Will it be possible for an average time-starved investor to earn outstanding returns from
an alternative approach (in the commodity futures markets)?
The Rules are simple: the strategy has to be an acceptable alternative to an average
"weekend" investor's stock-market activities.
This is what i'm working with:
- max 4 hours work per week (3 hours research at weekend then 15 mins Mon,
Tue, Wed & Thurs evening to review opportunities and place orders)
- no screenwatching, working with end-of-day data only
- no special technology, orders placed with broker by phone (or email)
A little bit about the strategy:
I'll be trading commodity "spreads" i.e. simultaneous long and short positions in related
markets (not to be confused with Spread Betting! - In fact i'll think i'll refer to it as
taking "partly hedged" positions rather than "spreads" to avoid any confusion)
and I'll be looking to take an early chunk out of the developing seasonal trends - probably
a slack-handful of trades per month
Definately not one for the get-rich-quick guys - my first goal is to see how long it takes
to see a 30% return (if at all!!) and most importantly I also want to see a nice smooth
equity curve.
A word of warning - it's been a while for me. I cut my teeth on this stuff a few years ago
before getting drawn like a moth to the dazzling neon of daytrading (but that's another
story for another day).
I'll be firing live bullets and you'll get to see it warts and all on the month-end statement.
I guess one of two things will happen, if things work out well and this is a way of getting
involved in the markets that you weren't fully aware of it might encourage some further
thought, on the other hand you could get to watch me blow-up my account in real time!
Either way I'll try and make it entertaining and have a bit of a laugh along the way.
Cheers
Kato
In this current economic wasteland I thought I'd conduct a bit of an experiment...
Will it be possible for an average time-starved investor to earn outstanding returns from
an alternative approach (in the commodity futures markets)?
The Rules are simple: the strategy has to be an acceptable alternative to an average
"weekend" investor's stock-market activities.
This is what i'm working with:
- max 4 hours work per week (3 hours research at weekend then 15 mins Mon,
Tue, Wed & Thurs evening to review opportunities and place orders)
- no screenwatching, working with end-of-day data only
- no special technology, orders placed with broker by phone (or email)
A little bit about the strategy:
I'll be trading commodity "spreads" i.e. simultaneous long and short positions in related
markets (not to be confused with Spread Betting! - In fact i'll think i'll refer to it as
taking "partly hedged" positions rather than "spreads" to avoid any confusion)
and I'll be looking to take an early chunk out of the developing seasonal trends - probably
a slack-handful of trades per month
Definately not one for the get-rich-quick guys - my first goal is to see how long it takes
to see a 30% return (if at all!!) and most importantly I also want to see a nice smooth
equity curve.
A word of warning - it's been a while for me. I cut my teeth on this stuff a few years ago
before getting drawn like a moth to the dazzling neon of daytrading (but that's another
story for another day).
I'll be firing live bullets and you'll get to see it warts and all on the month-end statement.
I guess one of two things will happen, if things work out well and this is a way of getting
involved in the markets that you weren't fully aware of it might encourage some further
thought, on the other hand you could get to watch me blow-up my account in real time!
Either way I'll try and make it entertaining and have a bit of a laugh along the way.
Cheers
Kato
