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Spread Scan Issue: November 11, 2009 - Volume 272
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.
There were no indicators for a really strong trade so far this week, as sometimes happens in trading. It is best to use this time to do other things.
Lesson to be learned: we earn more money through ignoring weak trades than through "taking a chance" (gambling) on them.
Until next week!
On November 3 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a calendar spread: long September 2011 and short March 2010 Eurodollar (EDU1 - EDH0) at -2.17 or better. Suggested risk is $350; suggested first target at -2.00, then higher. Basis is seasonal (11/4 - 12/11) and possible support at -2.26. Comment: I don't like to trade breakouts on this spread and will try entering on weakness."
Here's how we suggested managing this trade:
11/04 In at -2.17. Suggest exiting on a close below -2.27; suggested first target at approx. -2.00.
11/06 Suggest cashing in the first lot on Monday at approx. -2.06.
11/09 It was possible to cash in the first lot at -2.06. Suggested exiting the spread on a close below -2.20.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, how long will it take to become a consistent winner?"
Andy: Many novice traders underestimate how long it takes to become consistently profitable. They assume they can trade profitably in a matter of months, whereas veteran traders will tell you that such consistently profitable trading may take several years. And it's difficult to achieve. It requires great effort and persistence to become a steady winner, yet many aspiring traders think only minimal effort is needed. For example, they may think they can trade profitably by treating trading as a game rather than as a serious business. They over-estimate their ability level. They overconfidently think that they have skills and abilities that they do not yet have. Don't ever underestimate the tendency to be overconfident. Conquer the tendency to trade beyond your skills by cultivating a sense of healthy scepticism regarding your trading skills and your trading strategies. Be realistic about what you can actually achieve.
In the end, it's important not to get your hopes up too high. The only way you'll achieve profitability is by setting realistic goals based on realistic expectations. You must accept the fact that trading is just plain hard work. You'll have to put in a great effort to achieve success. With enough persistence, hard work, and determination, however, you will build up the skills you need to become a consistently profitable trader.
Grow Your Capital through Trading Currencies
Everyone knows that currency trading can be a great way to protect and grow your capital if you know which currency to be in, and when to be in it, and that is what Forex at the Market (Forex ATM) is all about.
Forex at the Market is a trading advisory for traders who have gone through enough forex scams to know that it's impossible to consistently make 100% or more in their account each week and each month. Forex ATM is for traders who seek consistent profits, but who no longer feel they have to trade every day or trade all day long.
If you want to trade when the market is right for profitability,
then Forex ATM
is for you.If you have a job during the day, you can still benefit from Forex at the Market.
In Forex ATM you will find premium, class-A trades only, the ones that make you money.
Forex ATM is exciting because the trades offered can be done no matter the size of your account, since you are able to nicely scale the size of your trades with most Forex brokers. Therefore, the method is good for traders with any size account!
VISIT OUR SITE
WWW.FX-ATM.COM
TO FIND OUT MORE ABOUT THE ADVISORY "FOREX AT THE MARKET"
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 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 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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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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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!