If you have problems reading this newsletter, please follow this link:
Spread Scan Issue: November 25, 2009 - Volume 274
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
- Be consistently profitable in the E-mini S&P 500
- Holiday Savings Event at Trading Educators: FREE SHIPPING PLUS 15% OFF ON PRODUCTS AND SERVICES
- Next online live discussions for Traders with Joe Ross: Wednesday, November 25, 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 LHM0 – LHG0: long June 2010 Lean Hogs and short February 2010 Lean Hogs
Today we consider entering a Lean Hogs calendar spread: long June 2010 Lean Hogs and short February 2010 Lean Hogs (LHM0 – LHG0). After breaking out of its down trend channel in October, to the down side, the spread has since recovered from the November low at 10.75. The spread is showing a possible 1-2-3 low right now. A close above 12.65 would complete the 1-2-3 low formation and indicate a further up move of the spread. The low from 11/18 at 11.925 could be used as an initial stop.
On November 16 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a Kansas Wheat calendar spread: long December and short July Kansas Wheat (KWZ9 – KWN0) at -39 ½ limit. Suggested risk is $200; suggested first target at 36, then higher. Basis is a 2-year correlation with 1996 and 1997. First Notice day for KWZ9 is 11/30."
Here's how we suggested managing this trade:
11/17 In at -39 ½ (only filled with about ½ of all lots).
11/23 FN for KWZ is 11/30. Due to the Thanksgiving holiday I would recommend closing the spread on Wednesday.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
Losses and Setbacks
by Joe Ross
Losses and setbacks are a fact of life for a trader, but you need to experience them and recover from them in order to grow and mature. Any trader who has never experienced a severe drawdown, or blown out his or her trading account, has never learned to realize the worst-case scenario and recover from it.
Setbacks, even severe ones, are very important learning experiences and, if handled correctly and with a right attitude, are opportunities for growth. We all need to learn from past mistakes, and learn how to turn a negative event into a positive event.
You cannot afford to become paralyzed by setbacks. The mistakes you make should motivate you to improve the way you handle your trades.
I have found that when I examine myself and what I did wrong, I learn and am then on fire to never make the same mistake again. Of course, I do make them again, again, and again, but I know if I want to win in the markets I have to keep trying to overcome.
Try to not get bogged down with self-doubt, regret, and defeat. Instead, use the "loss" as an opportunity for change and improvement.
Here’s how I go about it. I examine "losing" performances in great detail. I am looking for the factors associated with my poor performance, and then I plan to correct what I did wrong.
Hopefully you are not afraid to take a truly honest look at yourself. Self examination is vital to good trading, so welcome it. By closely examining where you went wrong, you have taken an important step towards achieving success.
Consistently profitable in the E-mini S&P 500If you are looking for a way to get paid to trade the
E-mini S&P 500, then look NO FURTHERIt's right here! Joe Ross will show YOU how he day trades the E-mini S&P 500
using a 5-minute and a 1-minute chart.Joe Ross' E-Mini S&P 500 E-Book is loaded with trading examples. In addition,
he shows you how to handle business, risk, money, and trade management for
this market. And there is more:Joe will show you step-by-step....
how to prepare each day to day trade the E-mini S&P 500 early trade considerations and what you should be looking for charts that show you exactly how to TRADE WHAT YOU SEE how to micro-manage your E-mini trades what you can expect from each trade how to money-manage your E-mini trades how to set objectives There is so much more Joe wants to show you, so do yourself a favor!
Get the e-book, read it, study it, read it again - Please follow this link now for more details...
HOLIDAY SAVINGS EVENT - ORDER TODAY AND GET 15% OFF!
(See details below)We have received lots of great feedback ever since we released it. We are really excited to know how much our clients have profited from Joe's E-mini S&P 500 book. Here is what some E-mini Traders have to say:
"Full Advise with great emphasis on market dynamics, an essential ingredient to trading success.” -- J. Torrelles, Spain “Joe, your e-book "Day Trading the E-mini S&P" was just as expected. Fantastic! Your book has given me a better understanding of what the markets are doing throughout the day and why. Thank you for all that you do." -- Shane K., USA “I have all of Joe's books - logical, accurate trading methodologies and the E-Mini S&P 500 e-book is another successful extension of Joe's honesty and legacy in helping traders. Thank You Sir. I have successfully used Joe's trading methods in the past.” -- Tim A., U.S.A. “Joe, The information in your E-mini S&P 500 is just what I have been looking for. Once you know how the inner workings work then you can start to understand what is actually taking place as it's happening. I would recommend anyone trading the E-mini S&P 500 to purchase a copy of Joe's e-book. The way you have delivered the information is second to none. Keep up the Great Work. Thanks. ” -- G. Sawford Australia. "I am very grateful that I purchased Mr. Ross's book on day trading. It was an eye opener to me in how to look at the daily action in the S&P e-mini contract. I position trade and this will give me a better way to enter and add to my positions for my system. In the past I was taking too much risk by entering a position at the end of the day where if I could have entered earlier there would have been better money management. Thank you for a great way to look at day trading." -- Patrick Bayes, USA “This is a fascinating book which explains why the E-mini S&P 500 moves the way it does and how to profit from that knowledge.” -- Thomas C., U.S.A. “There is a wealth of wisdom and knowledge packed in this E-mini S&P 500 e-book. What is especially outstanding is the abundance of chart illustrations taking the trader through the day trading technique. Joe's years of experience permeate the method from start to finish. Both the experienced and new trader will benefit from the approach to trading the e-mini S&P. I'm most grateful for his sharing what has taken him a lifetime to achieve.” -- Billy A., U.S.A.
“Joe is one of the best traders willing to share his vast experiences with the public. His deep understanding of the reasons for the markets moves, his intuition, compressed into the not so many pages, richly illustrated with numerous real-life charts, his logical reasoning, all make this book into a treasure. As an Academician A.N. Kilmogorov once said, the more compressed the info, the more value per character it contains....And of course this value per character is readily applicable to the other markets (like oil markets for example that I trade). Thanks Joe!.” -- Victor R., U.S.A. “The morning considerations and the stop running was an eye opener for me.” -- P. Dirksen, Netherlands
You'll find more trader testimonials on the webpage that introduces the "Day Trading the E-mini S&P 500" e-book - just follow this link. THANKS AGAIN for sharing your thoughts and comments; we appreciate them immensely. HOLIDAY SAVINGS EVENT - ORDER TODAY AND GET 15% OFF!
FOLLOW THIS LINK TO SEE AN OVERVIEW OF OUR PRODUCTS
AND SERVICES
*DISCOUNT OFFER: Don't miss out! Order online by 11:59 p.m. CT, December 4, 2009, to get free standard shipping plus save 15% on your purchase of $100 or more. Discount applied to product total only. Gift cards not included. Shop any link in this e-mail or on our websites.
Offer valid within the "Exclusive Offer" category only; discount will be applied at checkout at the Trading Educators store. Offer valid online only. Not valid on special orders, e-gift card orders, previous purchases, or on orders after the specified date. Not redeemable for cash. This offer is subject to change, including termination, without notice. Discount on subscription services applicable for the first month only. Discount not valid on Private Tutoring with Joe Ross, Live Seminars in Dallas or abroad, Mentoring Program for Spread Trading with Andy Jordan, taxes, or shipping charges. Offer not valid with other promotions or coupons. We reserve the right to limit quantities. Offer valid from November 20 through December 4, 2009.
** FREE SHIPPING DEAL: Free standard shipping: offer valid within the "Exclusive Offer" category only; free shipping discount will be applied at checkout. Offer is valid online or on phone orders. Not valid on special orders, previous purchases, or on orders after the specified date. Offer is valid for standard shipping only. If you need Express or Overnight delivery, shipping charges will apply. If you need your shipment faster, require tracking and/or signature confirmation, please contact Denise Ross at ross@rosstrading.com or contact by phone: 800-476-7796 or 1-512-249-6930. Offer not valid with other promotions or coupons. We reserve the right to limit quantities. Offer valid from November 20 through December 4, 2009. See further details on shipping times.
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.
|
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!