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Spread Scan Issue: October 7, 2009 - Volume 267
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
- HOW YOU CAN FORM WINNING, MONEY-MAKING HABITS IN YOUR TRADING
- Announcement from Joe Ross: When it comes to trading successfully
- Traders Accounting Webinars Online
- Next online live discussions for Traders with Joe Ross: Wednesday, October 7, 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 SMZ9 – SMN0: long December Soybean Meal and short July Soybean Meal (ECBOT)
Today we consider entering a Soybean Meal calendar spread: long December and short July Soybean Meal (SMZ9 – SMN0). The spread has been forming a triangle with higher lows, but also with lower highs, since July. The picture has changed slightly since August, and the spread seems to be gaining some strength. I personally would try to enter the spread at the lower side of the triangle. An entry around 3.5 with a stop at the July low could be a possible strategy, with a possible target at 25 or, with the help of seasonality (10/08 – 11/06), even higher.
On October 4 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider buying December Silver at 1650 stop market (not before 9:00 PM CT Sunday; no entry if the market trades above the recommended entry value at 9:00 PM CT). Suggested stop at 1632; suggested first target at 1668. Basis is a TTE in front of a possible 1-2-3 low."
Here's how we suggested managing this trade:
10/05 Long at 1650; hit suggested first target; suggested stop for the second lot at break even; suggested final target at 1735.
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
The Long Run Is Longer Than You Think.
by Andy JordanMany traders are smart enough to know that they will win in the long run by taking only the best trades, but become impatient due to the lack of anything happening. They forget that the long run can be “long”.
Taking only the best trades can be frustrating. They come along rarely, and even when they do there is no guarantee of winning with them. Long gaps occur in between. We can become angry and irritable, and our emotional balance can be severely tested.
Many traders, especially beginning traders, seem to think that they have to trade all the time if they want to make money. Very often the opposite is true. A good trader is a patient trader, because he knows that "the long run" is longer than we think.
FORM WINNING, MONEY-MAKING HABITS IN YOUR TRADING WITH THE LIFE INDEX FOR TRADERS.Use the Life Index for Traders to greatly cut your losses in trading, and to form winning habits to boost your profitability and your enjoyment of life.
EXPERIENCE SUCCESS IN YOUR TRADING WITH THE LIFE INDEX FOR TRADERS.
Experience a more rewarding trading life by becoming a more profitable trader, as well as becoming a more successful all-round person who achieves balance and control in many aspects of your life.MAKE PROGRESS IN YOUR TRADING WITH THE LIFE INDEX FOR TRADERS.
Use the Life Index for Traders to monitor your daily life, to chart your progress, and to stay on course with your trading plan.LEARN PERSISTENCE AND DILIGENCE IN TRADING WITH THE LIFE INDEX FOR TRADERS. The Life Index helps you to be persistent and diligent when you trade, part of building the right character and having the correct mindset to be a more successful and profitable trader. Master Trader Joe Ross credits the Life Index for Traders for his ability to master self-discipline, and for his growth as a more profitable trader.
Follow this link to find out more about how Joe Ross has used the Life Index over the years to successfully trade the markets, and how you can do the same…
FROM JOE ROSS
Because I want to make sure you keep getting the best, I don't want you to miss out on anything really essential I have to give. I want you to have all the pieces of the puzzle when it comes to trading successfully. That's why you don't want to miss the seminar I'm giving in Texas on October 17-18. Please continue reading and let me tell you more about a great event that's taking place next month.
During the years I was teaching traders in other countries, my day trading seminar was fine-tuned, loaded with vital information, and my students left knowing they had everything they needed to become successful. The trading seminar is so hard-hitting that people walk away stunned by all that they have learned. I know this seminar will forever change your understanding of the markets and be a life-changing experience for you.
It's not too late to register.
I hold nothing back at my seminars. This is the most important one I have ever given, and I know that if you attend, everything you need to know to become a winning trader will come together for you. YOUR EYES WILL BE OPENED! |
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THE MARKETS ARE WILD AND VOLATILE — YOU HAVE TO KNOW HOW TO TRADE THEM
If you miss the information I reveal at the seminar, you may not be around to see what you’ve missed. I’m now going on 75 year of age. I’ve been trading in markets for 52 of those years. I know more about how markets really operate than you may ever know — and you won’t know if you don’t survive the market for the next few months and years. My intention is to pass on to you what you need to know — to leave a legacy.
I would love to see every one of you at my seminar in Dallas/Fort Worth, Texas. I want to meet you in person. I know that it won't be possible for some to come, plus we have only limited seating available. However, if you can make it, please sign up now and come to the seminar. I promise you won't regret it.
It's not too late to register.
If you want more information about the seminar or if you want to sign up to reserve your seat, please visit the following link: http://www.tradingeducators.com/seminars.htm
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Day Trading Seminar for
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ALL THE PIECES OF THE PUZZLE WILL COME TOGETHER FOR YOU ON OCTOBER 17-18.
We have contracted a hotel for the seminar room, meals, snacks at breaks, and a block of rooms to be reserved at special discount prices for those attendees who will be staying at the hotel, plus we print a 300+ page manual for each student to take home to keep the information fresh.
Please follow this link to see what you will learn at the seminar. We call it a Day Trading Seminar for E-mini S&P, Forex, and Stocks, but I promise you that what you will discover is so true that you will be able to trade any market in any time frame. It’s all in knowing how to do it. I have reduced a lifetime of vital trading information into a two-day seminar that is simplicity itself.
You will receive information you simply cannot get
anywhere else.
Of course, the decision is yours; the ball is now in your court. Will you come? For more information, or for signing up, go to
http://www.tradingeducators.com/seminars.htmAll my best wishes for your future,
Joe Ross
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HOW TO SIGN UP RIGHT AWAY |
TRADERS ACCOUNTING WEBINARS ONLINE
Due to popular demand, Traders Accounting, America’s most trusted trader tax experts, takes its industry-leading tax-saving strategies and insights to WEBINAR Technology for a lively series of informative seminars guaranteed to trim your taxes.
We know you have questions:
- What is trader tax status, why do I want it and how do I obtain and protect it?
- How and when do I elect mark-to-market accounting?
- Which business entity is really best for my trading activity?
- What’s so cool about a Solo 401(k) retirement plan for traders?
- And more...
If you run these common trader questions by your neighborhood accountant, chances are you’ll be met with a puzzled look or a blank stare. Simply put, they don’t speak trader.
But as both traders and accountants, Traders Accounting has the up-to-the-minute answers to even the toughest trader questions. We specialize in designing individual tax strategies that leverage little-known opportunities and loopholes in the tax code, ensuring that your trader tax status really pays off.
Take this opportunity to meet face-to-face with Traders Accounting CEO Jim Crimmins and learn the trader tax secrets that will pay dividends for years to come. Gather insights on a broad range of current tax topics and the answers about entity structure, trader tax status, tax reduction strategies, tax preparation and tax-advantaged pension plans.
Don’t loose another dollar on unnecessary taxes. Sign up today for the Traders Accounting Live! Webinars.
Increase Cash Flow With Tax Efficient Trading --
Oct. 15 2009 -- 5:00 PM PSTJim Crimmins, President of Traders Accounting will present a webinar on “Tax Efficient Trading”
Part of the survival for any successful trader is cash flow management. The largest expense a trader has whether the trader makes or looses money is taxes. Every dollar we spend on taxes means we have one less dollar to trade with. With this in mind it is obvious that as traders we have the obligation to do everything possible to keep as much money in our brokerage accounts as possible.
October 15th starting at 5:00 PM PST
Click Here to register for the online webinar
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 October 2009
Wednesday, October 07, 2009
Wednesday, October 14, 2009
Wednesday, October 21, 2009
Wednesday, October 28, 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 October 2009
Wednesday, October 07, 2009
Wednesday, October 14, 2009
Wednesday, October 21, 2009
Wednesday, October 28, 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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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.
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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!