If you have problems reading this newsletter, please follow this link:
Spread Scan Issue: July 15, 2009 - Volume 255
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. Follow this link to view this week's Spread Scan immediately or read on.
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 to "white list" us to ensure that you receive all your issues of Spread Scan. That way you can continue to enjoy learning through the best free educational trading information available, and we can keep you informed about additional trading techniques, educational services and products to help you grow as a successful and profitable spread trader.
This week we look at SBV9 – SBN0: long October '09 Sugar and short July '10 Sugar (ICE)
Today we consider a Sugar #11 calendar spread (ICE): long October '09 Sugar and short July '10 Sugar (SBV9 – SBN0). After testing the June low at -0.73 two times, the spread moved up strongly to break even in the second half of June. Since then, the spread has declined about 50% of its last up move. Will seasonality (06/29 – 07/31) help move the spread higher? The July low at -0.43 seems to be a logical level for the initial stop.
Traders may want to enter the spread at -0.30 or better. Initial margin is $700. Suggested risk is $330. Initial projected objective is $330, then a move higher. Basis is seasonal (6/29 – 7/31) and a 1-2-3 low.
On July 7 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering an inter-market spread WU9 – CU9 at a close above 190. Initial margin is $1,728 (reduced). Suggested risk is $1,500. Initial projected objective is $1,500, then higher. Basis is seasonal (7/7 – 8/26) and a 1-2-3 low. Comment: the entry of the 1-2-3 low would be 187, but I prefer to wait for a stronger break out."
Here's how we suggested managing this trade:
07/08 Suggest entering MOO if not already in the trade.
07/09 In at approx. 196; suggested mental stop on close at 169.
07/13 It was possible to cash in the first lot at around 209 (see email). Suggested mental stop on close at 188.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, what is your personal definition of successful Money Management?"
Money management involves a number of aspects, and it is not to be confused with trade management. Money management is static. It deals with things like deciding the size of your margin account; deciding how much of your account you will put at risk on any one trade; deciding where to place your stop; and deciding on fixed objectives.
The main purpose of money management is to save you from a disastrous trade. Money management is what you use to limit losses. My personal definition of successful money management is to limit losses while at the same time providing an adequate opportunity to realize a profit from the trade.
Money management is of major importance, and each trader has to make sure he understands at least the basic principles (don´t worry; you don´t have to be a mathematical genius to understand the basics).
Joe Ross' book "Trading Is a Business" teaches all aspects of the kinds of management needed to be successful in this business of trading, including money management.
How to Become a Winning Trader Regardless of What You Day Trade:Find out at this upcoming Day Trading Seminar with professional Master Trader, Joe Ross. What you learn at this seminar will move you towards becoming a winning trader, regardless of what you Day Trade.
SIGN UP BY JULY 31 TO RECEIVE A $500 DISCOUNT!
Joe will give you the information to help you succeed beyond your wildest dreams. Joe shares with you the ultimate achievement: what you learn at this seminar will enable you to not only day trade any market in any time frame, but also to position trade, swing trade, intermediate-term trade, or long-term trade any market, any time, anywhere in the world, as long as you have a source of data and a way to place orders. KEEP READING. THERE IS MUCH MORE YOU WILL LEARN!
Day Trading Seminar for E-mini S&P, Forex, and Stocks with Joe Ross
in Dallas/ Fort Worth, Texas - October 17/18, 2009THE BEST DAY TRADING SEMINAR YOU WILL EVER ATTEND
YOU WILL LEARN:
About Market Dynamics. You MUST understand market dynamics to have any chance of real success as a trader. Where prices will move next. Why prices move, and how to take advantage of those moves. How far prices are likely to move, and when. How Price Momentum is generated. Knowing this is one of the most important tricks of the trade. How to know where the orders are, and what that means to your trading. Joe's 5 most important setups – simple ways to make profits fast. How to day trade the E-Mini S&P 500, and then learn Joe's secret to something twice as good.
You have to have a trading plan. Joe will guide you one step at a time through forming an effective trading plan.
How to trade forex currency pairs, and then find out where Joe trades them for greater safety.
You can day trade any market in any time frame with what Joe teaches you. Day trade stocks, futures, or forex. It won't matter which, once you learn the truths Joe teaches.
How to day trade stocks in a better way than do most other day traders. The importance of trailing stops, and how they are used to create momentum.
The heavy players in the market. Unless you follow their moves, you have little chance of winning. Joe identifies them for you, and shows you how to take advantage of their actions. How to get in step with price movement. Your identity and role as a day trader. How to approach the markets. The right mind set for trading. What you need to know about your trading business. How to read a chart. Charts speak. Do you understand what they are saying? The information contained in a single price bar. Can you name seven important pieces of information contained in a single price bar? Joe will teach you eight! Better perspective as Joe clears away the confusion and mystery of the markets. An in-depth look at the Traders Trick Entry™. Learn some really slick ways that other traders use the TTE to make money.
How to manage your trades, whether you are a scalper, a swing trader, or a position trader.
How to determine the best management method for your personality and style of trading. Trading has to become your own – within your own level of comfort. Joe shows you how to get there.
How Joe takes advantage of the Fibonacci, Gann, and Golden Ratio traders. You will be amused at how he does it. He even shows you where the Fib traders make their biggest mistake.
How to take advantage of momentum. In fact, unless Joe sees the potential for momentum, he won't even trade. He'll show you what that looks like.
A brief review of the Law of Charts, done in Joe's own unique way. You will learn much from the way he explains it.
About breakouts and retracements; support and resistance. Joe shows you the two-headed monster of so-called "market truths." You will surely come away with a different idea about the things you've heard and read. How to trade defensively. (Most likely, you are not the 800 pound gorilla in the market.) The information above barely scratches the surface of what you will learn. Please follow this link to find out everything you need to know about this seminar:
Day Trading Seminar for E-mini S&P, Forex, and Stocks
with Joe Ross in Dallas/ Fort Worth, Texas October 17/18, 2009
SIGN UP BY JULY 31 TO RECEIVE A $500 DISCOUNT!
"The two days at the seminar have been absolutely great, I learned many tools and tricks to make my trading profitable. The explanation was very clear and simple."
-- F. B., Italy"Joe, I look back at the seminar and am amazed to think of all of the information you transferred to me. I feel slightly foolish for not realizing all that I did not know, even though such a realization before the fact isn't possible. Thanks for spending the time and making the strong effort to help my trading skills in a tone of honesty. As I told the gentleman that called me today who was looking for my feedback on the seminar, the seminar was way above my expectations. Again, thank you for the honest tone in your teaching. That and your experience, I value more than anything." -- Mike, Chicago, IL
"Joe, I'm happy to have met you. It makes the hell of a difference. NO INDICATORS today! another 10 cents per contract. Thank you JR!" -- Pedro, Madrid, Spain
"This is the first seminar that covers all the topics about
trading in a professional way. The teachings are clear, honest and really applicable." -- P. G., Italy
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 July 2009:
Wednesday, July 15, 2009
Wednesday, July 22, 2009
Wednesday, July 29, 2009
We hope you will join us!
Here
is where you login to Joe's Wednesday Chat
You can also view our saved weekly Chat Logs in case
you missed any Chats but want to be up-to-date
European Chats for July 2009:
Wednesday, July 15, 2009
Wednesday, July 22, 2009
Wednesday, July 29, 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 1980'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.
|
This email was sent to you by Trading Educators. To ensure delivery to your inbox (rather than to bulk or junk folders) please add info@spread-trading.com to your address book immediately.
 |
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 fifty years ago. He is now in his seventies, enjoying sharing his experiences of many years through his books, seminars, individual tutoring, and newsletters.
We hope you decide to join us in our forum to make your contributions as well.
Contact Us
1509 Jackson Drive
Cedar Park, TX 78613
Phone: 800-476-7796 or 512-249-6930
Office hours are Monday - Friday 9 A.M. to 5 P.M., U.S.C.T.Questions or Comments? Please email us: support@spread-trading.com
© Since 2004 by Trading Educators, Inc
Unsubscribe or change subscription
To change your subscription or to unsubscribe, scroll past the end of this
newsletter to click the "unsubscribe" link.
Joe Ross & Trading Educators, Inc. own all rights, title and interest to this publication. No part of this publication may be reproduced, in whole or in part, or by any means, mechanical or electronic, without permission in writing from the Publisher.You have no rights to resell, reprint, reproduce, or digitize Spread Scan Newsletter. While all attempts have been made to verify information provided in this publication, neither the author nor the Publisher assumes any responsibility for errors, omissions, or contrary interpretation of the subject matter herein.
This publication is not intended for use as a source of any advice such as legal, medical, or accounting. The Publisher wants to stress that the information contained herein may be subject to varying international, federal, state and/or local laws or regulations. The purchaser or reader of this publication assumes responsibility for the use of these materials and information. Adherence to all applicable laws and regulations, including international, federal, state and local, governing professional licensing, business practices, advertising and all other aspects of doing business in the US, Canada, or any other jurisdication is the sole responsibility of the purchaser or reader. Neither the author nor the Publisher assumes any responsibility or liability whatsoever on the behalf of any reader of these materials.
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!