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Spread Scan Issue: April 29, 2009 - Volume 244
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Otherwise, welcome to this week’s issue of the Joe Ross Spread Trading Newsletter.
The Spread Scan weekly newsletter is designed to assist you in becoming a better, more complete trader by showing you, within the context of the markets, how to trade spreads.
In this newsletter you will see applications of spreading in the futures and commodity markets. Spreads are applicable to all futures markets including currencies, commodities, financial instruments, and stock indexes. It is even possible to trade spreads in the all-electronic intraday market using day trading techniques.
Spreads are based on seasonality, correlation, backwardation, chart patterns, and simple observation. Spreads follow the Law of Charts™ and can be implemented using the Traders Trick™ entry.
In each issue of Spread Scan, you will find an upcoming spread trade for your consideration in the following week. You will also find a review of an existing or closed spread so you can see and learn how spread trades are managed.
Spreads offer you the most efficient use of your margin account of any other way to trade. Many traders find they like them so much that spreading becomes their primary way of trading.
Each week we present spread trading examples and opportunities to help you become a more professional spread trader, and we provide you with helpful content of interest to traders:
Be sure you receive all your issues of Spread Scan so that you can continue to enjoy learning through the best free educational trading information available, and so that we can keep you informed about additional educational services and products to help you grow as a successful and profitable spread trader.
This week we look at BOZ9 – BOQ9: long December '09 Soybean Oil and short August '09 Soybean Oil (ECBOT)
Today we consider once again a Bean Oil calendar spread (ECBOT): long December '09 Bean Oil and short August '09 Bean Oil (BOZ9 – BOQ9). Even if the spread is still in a downtrend, it seems it has been slowing its downward momentum since March, giving us a possible 1-2-3 low for an entry. Can seasonality (05/03 – 07/28) help to move this spread higher, or will it continue its downtrend into May?
Traders may want to enter the spread at a close above 0.60. Initial margin is $203 (reduced). Suggested risk is $100; initial projected objective is $100, then a move higher. Basis is seasonal (05/03 – 07/28) and a 1-2-3 low.
On April 15 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a currency equity spread 1000*CDM9 – 625*BPM9 (Globex) at a close above -$9,960. Initial margin is $7,040 (fractionalized credits). Suggested risk is $2,000. Initial projected objective is $2,000, then a move higher. Basis is seasonal (4/25 – 5/11) and a 1-2-3 low. Comment: Currency spreads are usually volatile and recommended only for those with deep pockets!"
Here's how we suggested managing this trade:
04/16 More aggressive traders might want to enter tomorrow at -$10,600 or better with a close mental stop at -$11,500.
04/22 More aggressive traders are in this trade at -$10,600 or better. Suggested mental stop at -$11,900.
04/27 The spread moved up to the first suggested target ($2,000) during the morning hours. Suggested mental stop at -$10,600.For more information about our daily newsletter, visit our Spread Website to find out
more about Traders Notebook.Questions or Comments? Please email us: support@spread-trading.com
Student's Question: "Andy, in general, is short-term trading more profitable than long-term trading, or vice-versa?"
Andy: Many traders believe that it is not enough to concentrate only on spread or swing (position) trading to make enough money. They think that to make lots of money you have to put on lots of trades. I personally think the opposite is true. There are many more successful swing or spread traders than there are short-term traders. Long-term traders spend much less time actually trading, but they spend lots of time researching new trades.
If you want to become successful in trading, you have to find your personal way, your personal style. It doesn’t matter if you end up as a short-term or a long-term trader as long as your way of trading fits your personality. It doesn’t matter if you scalp or if you spread the markets, as long as you feel comfortable with what you are doing. This is probably the reason that you cannot just copy a “trading style” from someone else. It has to come from within you.
Successful Traders learned from the BEST - Train with Joe RossJoe Ross offers you a sincere and devoted commitment to teaching and showing you the truth and simplicity in trading.
"It was an honor to study under Joe. He's very personable and humble. I was quite nervous about studying under such a renowned Master Trader, but his humility put me at ease. Joe's approach is simple, yet profound. He takes the confusion out of chart reading and opens your eyes to what's really taking place in the markets. He puts it all into focus, instilling in you the confidence to take a trade. I've taken a number of courses from what I would now refer to as Master Scammers in the forex market. None of them were able to give me what Joe gave me: the confidence to trade. I believe this is the greatest gift a teacher can impart to his student. This gift alone is worth far more than the price of the course. Thanks, Joe! I was once blind, but now I see."
Christopher Holm, JapanPrivate training sessions, for traders at any level, pull together all the information from Joe's books and the web courses, and make it more individualized and usable. These sessions go beyond anything you have seen or heard before; material that is simply not covered in futures, stock, or forex trading books or other sources commonly available for traders today.
Schedule your private tutoring time with Joe Ross in person or online
For instance, do you know of anyone who teaches you about how the market movers really work, what truly takes place in the markets, and how to neutralize the market movers' advantage?
The sessions with Joe are highly individualized. Not only do you learn the important basics, but all of it is focused towards YOUR NEEDS. You will never go away empty-handed (or empty-headed) from a Joe Ross training session.
The objective of the one-on-one session is to give you the information you need, and to learn to "get paid to trade" as Joe always advocates. Please follow this link now to learn more about private tutoring with the master trader himself...
"Mr Joe Ross is the best teacher I ever had, I know I have everything I need to know to trade the markets successfully. He has change the way I look at the markets and my whole approach to trading has changed 100%. I started daytrading yestarday after my training with Joe, and at 8.40 am I was done with a solid profit. Right now I look at what I was doing before and I think “why I was making trading that complicated” and the reality is that I have the answer thanks to you Joe. I have learned a lot, and I had a lot of fun being with you."
Joan Torrelles - Spain
FRESH PERSPECTIVES - Ready for YOUR active participation.
Joe's live chats are an incomparable service from Trading Educators. The chats encourage forward-thinking, and inspire others by what is shared. Gather up your questions and comments, and "meet" other traders on line. Joe Ross will answer everything he can - come and join either his U.S. Live Chat or his Euro Live Chat:
U.S. Live Chats for May 2009:
Wednesday, May 06, 2009
Wednesday, May 13, 2009
Wednesday, May 20, 2009
Wednesday, May 27, 2009
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you missed any Chats but want to be up-to-date
European Chats for May 2009:
Wednesday, May 06, 2009
Wednesday, May 13, 2009
Wednesday, May 20, 2009
Wednesday, May 27, 2009
We hope you will join us!
Here is where you login to Joe's Euro Chat
You can also view our saved weekly Chat Logs in case
you missed any Chats but want to be up-to-date.
ABOUT JOE ROSS:
Joe Ross has been trading and investing since his first trade at the age of 14, and is a well known Master Trader and Investor. He has survived all the up and downs of the markets because of his adaptable trading style, using a low-risk approach that produces consistent profits. Joe Ross is the discoverer of the Ross hook(TM), and has set new standards for low-risk trading with his concepts of The Law of Charts(TM) and the Traders Trick Entry(TM). Joe was a private trader and investor for much of his life, but a serious health situation in the late 80's caused him to shift his focus, and that is when he decided to share his knowledge. After his recovery, he founded Trading Educators in 1988, to teach aspiring traders how to make profits using his approaches to trading. Joe Ross has written twelve major books and countless articles and essays about trading. All his books have become classics, and have been translated into various languages. His students from around the world number in the thousands. His file of letters containing thanks and appreciation from students on every continent (now including Antarctica) is huge. As one student, a successful trader, wrote: "Thanks again for your trust and patience...Joe is a fountain of knowledge...but it is his wisdom that really sets him apart." Joe Ross holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles. He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk, Virginia. He is listed in "Who's Who in America." After 5 decades of trading and investing, Joe Ross still tutors, teaches, writes, and trades regularly. Joe is an active and integral part of Trading Educators. He is the primary author and Editor-in-Chief of the company's newsletters: Chart Scan(TM), Spread Scan(TM) , Traders Money Club™ and Traders Notebook(TM). He is also the host of the free Traders Live Chat, the free European Chat for Traders, and the moderator of his popular trading forum. |
Joe's philosophy for helping traders is:"Teach our students the truth in trading — teach them how to trade. Give them a way to earn while they learn, realizing that it takes time to develop a successful trader."
Joe sets forth the mission of Trading Educators as follows:
- To show aspiring futures traders the truth in trading by teaching them how to read a chart so that they can successfully trade what they see, and by revealing to them all of the insider knowledge they need in order to understand the markets.
- To enable them to trade profitably by training them to properly manage their trades as well as their mindset and self-control.
For information about Joe Ross and Trading Educators,
please follow this link...
ABOUT ANDY JORDAN:
Educator
for Spread Trading and
Editor of Traders Notebook & Spread Scan Andy
Jordan made his first option trade at the age of 18. Since then
he has been fascinated by the world of trading. In 2002 he met
Joe Ross, and became interested in spread trading. Andy was
then intensively tutored by Joe Ross and personnel at Trading
Educators. Andy is the founder and president of Jordan Trading, S. A. Even though Andy has shown through live chats and in several
trading journals that he is able to day trade today's markets,
spread trading has always been his favorite. In
addition to his own spread trading activities, Andy is the editor
of Traders
Notebook. For those interested in one-on-one personal coaching,
Andy has developed and instructs an online course in spread trading, "Trading Mentoring - Trade with
a Pro," during which he demonstrates all aspects
of trading from choosing the trades on through how and when
to enter the trades, manage the trades, and exit the trades. Andy has developed a number of our trading
methods, and supervises keeping them up to date.
|
 |
We
created our Trading
Community Forum for the purpose of providing positive, uplifting
educational material to traders who want to participate. There
is much to be gained from the collective wisdom and experiences
of those who choose to participate. Let’s share what we have learned
that has been helpful. Let’s all push forward to exchange new
ideas and interesting concepts. |
If you are willing to share what works for you, then we welcome you. Your ideas may help someone else on their way to success. In turn, you may pick up an idea or piece of information that will help you to become a better trader.
Joe Ross has been trading the markets, virtually all of them, beginning well over 5 decades ago. He is now in his seventh decade of life, so he has the experiences of many years that he is willing to share, as he is already doing through his books, seminars and newsletters.
We hope you decide to join us in our forum to make your contributions as well.
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Disclaimer:
The Commodity Futures Trading Commission has asked us to advise you that trading spreads or outright futures is complex and carries a high degree of risk. While there is opportunity for incredible wealth building, there is also the risk of losing even more than you invested. Of course, that's not unlike most other businesses. But informed traders are the best traders!