I can only say that I was shocked to see T. Boone Pickens on CNBC earlier this week discussing the performance of his commodity based hedge fund BP Capital. Mr. Pickens seemed to be less than his usual dynamic self when stating that year-to-date his fund is down over 60% and is now currently in cash with expectations that half of the invested capital will be pulled out by investor redemptions. I am not trying to pick on Mr. Pickens (no pun intended). I am only pointing out that even the wealthiest most successful traders lose money and sometimes a lot of it. So when you get discouraged about your performance, remember that.
I don't know what kind of strategies are used at BP Capital to trade the commodities markets, but in listening to Mr. Pickens on CNBC several times this year, I suspect that much of the trading is based on his subjective opinion about the direction of oil prices. Earlier this year he stated that he was short oil around $100, and then went long after it went above $110. I can only guess that he failed to exit when prices returned back below $100.
What if there was a different, completely objective, approach. Check out this free video from Marketclub that shows how you could have made $46,000 with less than $10,000 using Marketclub's trade triangle technology - Crude Video.
Subscribe to:
Post Comments (Atom)
1 comment:
"...I suspect that much of the trading is based on his subjective opinion..." INDEED
What is the single most important factor to becoming a successful investor ? A good education; a rich father ? The single most important thing is the ability to admit a mistake, something most human beings are incapable of.
When you combine the factor of admitting a mistake about money that difficulty is compounded. I've always said that one can tell a good investor from a bad investor. A bad investor bought XYZ @ 20 and still owns it @ 4. A good investor bought XYZ @ 20 and sold it @ 18.
Post a Comment