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Spread Scan Issue: November 4, 2009 - Volume 271
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 2*50*PLF0 – 100*GCZ9: long 2 January 2010 Platinum and short 1 December 2009 Gold
Today we consider entering an inter market equity spread in the metals: long 2 January 2010 Platinum and short 1 December 2009 Gold (2*50*PLF0 – 100*GCZ9). The spread has been trading in a wide range between $26k and $33k in September. In October the range became smaller, and the spread is now testing the October low at $27,800 for the third time. Can it , or will the spread drop down to retest the September low at $25,900? Aggressive traders with a big trading account might want to buy the spread on the first sign of strength, with a close stop. Please note: the spread uses a ratio of 2:1 and is very volatile. Seasonality goes from 10/30 until 11/16, and might help in moving the spread higher.
On October 21 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a Live Cattle calendar spread: long February short December Live Cattle (LCG0 – LCZ9) at a close above 0.350. Suggested risk is $300; suggested first target at 1.0, then higher. Basis is seasonal (9/14 – 11/8) and an up trend channel. Comment: After the entry I will use a mental stop on close at 0.200."
Here's how we suggested managing this trade:
10/22 Suggest entering MOO; suggest exiting on a close below 0.200.
10/26 Spread has broken the uptrend line but the close was above the recommended stop.
10/30 It was possible to cash in the first lot at 0.900 or even better.
Suggest exiting at a close below 0.500.
11/02 Suggested exiting on a close below 0.750.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
Can Trading Hurt My Health?
by Joe RossThere is a tendency to become overemotional when trading. Overcoming the propensity to play emotionally requires a conscious commitment to specific trading objectives. This entails choosing a target, developing a strategy, and finding a method for adhering to it. A goal enables you to keep a relatively even keel through good and bad periods, to sustain momentum, and to keep from becoming bored.
Of course, most traders enjoy the process of building up profits, the satisfaction of adept trading or simply outwitting the crowd. But it is not just the outcome that is important, it is also the process. The tension that accompanies being in the market is an integral part of the overall experience. Profit without risk, or loss without care, drains much of the pleasure out of the trading process.
Can it hurt your health? I really can’t say. The wrong kind of stress is known to be harmful to your health, but some degree of stress is what makes you perform at your best.
PROFITABLE BENEFITS OF SPREAD TRADING -
YOU DON'T HAVE TO MISS OUT ANY LONGER!Do you know why Spread Trading is hardly mentioned in any book, or on websites, or by exchanges, or by your broker? You need to find out why!
Spread trading offers you the most efficient use of your trading capital, more leverage than any other form of trading, and less volatility than any other form of trading! There are a lot more benefits; just read on to see.
Joe Ross' Spread Trading Online Seminar teaches you what you need to know to be able to trade spreads. All you need in order to study Joe's online video seminar about Spreads is a few hours of your time, your computer with internet access, and a valid e-mail address. You can learn from Joe Ross from anywhere in the world - his online Spread Trading Video Seminar allows you to participate even if you are in your pajamas.
You can watch the seminar around the clock, at any time, at your convenience.
FOLLOW THIS LINK TO GET THE ONLINE SPREAD TRADING SEMINAR WITH JOE ROSS ON YOUR COMPUTER TODAY
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 November 2009
Wednesday, November 04, 2009
Wednesday, November 25, 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 November 2009
Wednesday, November 04, 2009
Wednesday, November 25, 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:
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!