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Example of Compounding of Money Over the Decades From the CTA EXPO Mark J Walsh Company

If I told you a story( a real story) of a company that started in 1985 with lets say if you invested $100,000 would you believe that same $100,000 is worth in excess of $15 million dollars?

The story is of Mark J Walsh Company. However it was not an easy ride to compound $100,000 to $15,000,000 dollars. You would have had to endure a 43% draw down at one point and long periods in which you would not have made money. However if you were focused, disciplined and patient the possibility was present to compound money. The reality is most commodity traders and commodity trading advisors do not succeed. Mark J Walsh company is one of the rare few. Actually most commodity trading advisors blow up within 5 years of trading. The reasons commodity trading advisors as well as investors blow up is that they do not have a plan and more importantly they do not manage the inherent risks when trading. Many traders over trade or trade too large of a percentage of their capital. There is a draw down out there that can stop one from trading and compounding money.

What is interesting is that my accountant who has seen first hand my trading and my mentors, that he waited all of these years to invest. He has been my accountant since 1983. I have been trading since 1994. My mentor & inspiration has been trading since 1979. My accountant has watched him over the years in shock. Finally now, my accountant has decided to invest in one of my programs. Trend following is not easy nor is for everyone. Regardless if it is the stock market or actually any market there is no way to avoid losses. The key is to try to keep the losses small in order that you can stay in the game as Mark J Walsh company has done over the decades.

You have a choice, you can learn how to trend follow yourself or you can allocate to commodity trading advisors or money managers that understand how to approach risk & compound money over decades. Either way, it is not retirement in a box. There are always tough periods. You need to have a plan and stick with it. With even that there are no guarantees. We are dealing in uncertainty and risk. Anything can happen. Actually anything will happen. When I invest in a commodity trading advisor I only invest risk capital which is approximately 1-3% of my families net worth.

You need to accept the risks when trading. You need to realize past returns are not a guarantee for future returns.

Chart via IASG.com

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

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