Diversification

I would like your opinions on trading exclusively one commodity or a basket of them. I have done both and would welcome your input.

For all of the time spent researching, not to mention being spread thin trading, and accounting for equity requirements leveraged or not, it's worth it in my opinion to at least specialize in one commodity building up size. Trading multiple markets with little size in each just to diversify sort of defeats the purpose of diversifying. Not only that, with the markets being as correlated as they are the more instruments traded, the more risk assumed. Fills by degrees become less than perfect, as you know; until finally you get to the point you're struggling to manage a position you didn't know or didn't have time to exit it having gone against you.

I wouldn't trade more than three or four markets at any given time on your own. If you have size you want to hedge or wedge consider, if it pleases you, hiring a sterling fund manager (easier said than done these days), and he'll then in turn divide it up and assign a team if program trading isn't employed, that is.

Better yet, VWAP programs through better IB/DB are offered at low risk. If interested put in a call to your broker and discuss a portfolio plan.

Good trading to you;

Thanks for your input. I have used managed accounts a number of times and none have been profitable. I am daytrading so am not holding any multiple positions over night. I am currently trading forex, electronic, and pit accounts and find that I can find excellent set-ups somewhere but usually only good ones on the standards I trade. I prefer the eurodollar and emini sp but sometimes find myself forcing fair trades into the good or excellent catagory. Patience is a virtue but we all get that feeling of wanting to something, even if it's not exactly according to our rules. I like trading one commodity, one account, and really get a feel for the market but I seem choose better set-ups looking at 30 or 40 charts. I won't turn my accounts over to others but appreciate the advice on trading a few instruments. Thanks again