Principles of Winning
Past Performance is not Indicative of Future Performance
• The information contained is not intended and should not be construed as investment advice, a recommendation
of any kind, or an offer, or the solicitation of an offer, to buy or sell any securities, including any interest in
any Abraham Investment Management, LLC investment product. This information is qualified in its entirety by the
more complete disclosures, risk factors, and other terms and conditions that are contained in such offering
documents. This information is as of the date indicated, may be estimated and is subject to change without notice.
No representation is being made that any investment product will or is likely to achieve its objectives, that its
strategy will be successful, or that any investor will or is likely to achieve any results shown or will make any profit
or will be able to avoid incurring losses. 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.
• This presentation might contain references to hypothetical trading results
• HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED
BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR
LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN
HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY
PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT
THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES
NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE
IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO
ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN
ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE
MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE
FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH
CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS
The Bible Of Trend Following- How
Professional Traders Compound
Money & Manage Risk
I have a new book being published
by Wiley Books
The Goal of Our Discussion
• I am here to talk to you today about the Psychology
of Winning one of the most overlooked components
of investment success & Compounding of Money
• Learned these 10 Principles over the last 18 years.
• We will discuss 2 of them that probably you have
never really thought about.
• You will have a better understanding and what you
need to know.
Investing Success Is Like a Puzzle
• At Abraham Investment management, we believe that Investing Success
is like a Puzzle. Investing is a complicated, ever changing puzzle, with a
number of moving pieces. If we took all the pieces of the puzzle and
sorted them into components, we might be able to generalize and say
that there are three major components that all of these pieces would fall
Three Major Parts that Affect Long Term
• Risk & Money Management
• Psychology of Winning
The Psychology of Winning
• Can you expect to win in an uncertain world?
• What steps are you going to take to stay in the
• What will give you confidence that you can win?
• What does a victory look like?
• How much pain do you have to suffer to win?
• What amount of pain might change how you
define a win?
Anything Can Happen
• Outlier Events Are Almost Certain to Happen
• Most people try to dismiss outlier events.
• Most professionals try to dismiss them also.
• We expect them!
Comparing Sports and Investing
– Actually investing is like many sports: You need to play by the RULES!
– IF you Don’t Follow the Rules – You will not Win!
• Like soccer…hours of back and forth but the game is won on a few quick
• Like football… hours of gains and losses and a touchdown wins the game
in the 4th quarter.
• Like baseball, innings of boredom followed by a few key runs.
• What do you expect to happen when they go to a soccer game?
• Do you expect to see scoring every minute?
Compounding of 15% over 10
Compounding 15% over 15 years
Power of Compounding
• Einstein Called Compounding the Greatest Mathematical Discovery of All
How Many of You Would Invest in
• Would You Hold On During the Draw Down?
How About This?
These are Warren Buffett’s
• Would You Invest Now?
How Easy It Really Wasn’t
1 year + of No profits
Steep & Sharp Draw Downs
• From Equity Peak of $370,000 to $270,000
Long Flat Period of Elusive Profits
• Time to Quit?
More of Nothing Happening
• A long time with nothing happening
Psychology of Winning
We would welcome the opportunity to speak with you.
It is our goal to have well informed clients as it improves
the probability of long term success.
• Andrew Abraham
• Tel US 954 903 0638
• Tel Intl 972 54 319 4101
Skype -Abraham Investment Management
• Website www.AbrahamCTA.com