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Spread Scan Issue: September 23, 2009 - Volume 265
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:
- Andy's Spread Trading Example
- Previous Trades
- Andy Jordan's Trading Bites
- You cannot succeed in trading until you learn how to manage yourself as well as your trading business - FIND OUT HOW
- Next online live discussion for Traders with Joe Ross: Wednesday, September 23, 2009
- About Joe Ross and Andy Jordan
- TE Traders Forum
- Contact Us
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 KWZ9 - WZ9: long December '09 Kansas Wheat and short December '09 Chicago Wheat
Today we consider an inter-exchange spread: long December '09 Kansas Wheat and short December '09 Chicago Wheat (KWZ9 - WZ9). After being in a sideways market in July and August, the spread dropped below 15 in September. Since then, the market seems to have stabilized, and as long as the September low at 10 ½ holds, seasonality (09/11 - 10/12) might move the spread even higher. A break above 15 might be a possible signal for an entry. Initial margin is $1,310 (reduced). You might want to use the electronic contracts if you want to leg into this spread. Spread orders are possible using the pits.
On September 16 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider buying the December British Pound at 1.6540 stop market (not before 7:20 AM CT; no entry on a gap). Suggested stop (and reverse) at 1.6490; suggested first target at 1.6590. Basis is a TTE in front of a 1-2-3 low."
Here's how we suggested managing this trade:
09/17 Long at 1.6540; stop and reverse at 1.6490; hit first target; suggested stop for the second lot at 1.6440.
09/18 Out with the second lot at approx. 1.6335 (today's email).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
Sometimes others get to play and you don´t.
by Andy JordanSometimes in softball games, as a kid, they handed out the bats and balls and gloves, and there weren't enough to go around - so you had to sit it out. You had to sit on the bench and watch.
The same thing happens in trading. Sometimes you don't get to participate.
You must get used to the idea that sometimes you will sit in front of your charts for days or weeks, and nothing at all will happen. Others will have all the fun. There won't be enough bats and balls to go around. You will simply be warming the bench - watching.
In trading you must be comfortable with this - welcome it. Make peace with this idea. Cross your arms and sit back. Wait for YOUR trades and setups, and don't get irritated by other traders. You cannot be in every trade. If you don't get your entry signal, there is nothing to feel sorry about if you miss a profitable trade. Sometimes it is just not your trade; others get to play and you do not!
You cannot succeed in trading until you learn how to manage yourself as well as your trading business
In "Trading Is a Business" Joe teaches you how to do both, as well as dealing with risk management, money management, and trade management. You learn the right way to think.
Joe Ross' Trading Is a Business continues to be not only our bestselling book, but the one Joe says is the most important book he’s ever written.
'Trading Is a Business' is the book that has changed many people's lives over the years. Many traders say that after reading Trading Is a Business, they became profitable for the first time.
Are you ready for this empowering book?
GREAT! Please follow this link to visit our website
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:
Next U.S. Chats for September, 2009
Wednesday, September 23, 2009
Wednesday, September 30, 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
Next Euro Chats for September, 2009
Wednesday, September 23, 2009
Wednesday, September 30, 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.
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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.
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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!