Edition 296 Wednesday, April 28, 2010
Edition 296 Wednesday, April 28, 2010 |
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Commentary by Andy Jordan
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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 April 20 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a RBOB Gasoline calendar spread: long June and short July RBOB Gasoline (RBM0 – RBN0) at -0.0100 limit (GTC). Suggested risk is $250; suggested first target at 0.0, then higher. Basis is seasonal (04/13 – 05/28 LT). Comment: I want to give the RBOB spread another try, using another (more liquid) combination."
Here's how we suggested managing this trade:
04/20 Some traders got overnight into the trade at -0.0100. All other might keep on trying. Suggest exiting the trade at a close below -0.0125.
04/22 It was possible to enter the trade at -0.0100. Suggest exiting the trade on a close below -0.0125. Suggested first target at approx. 0.0.
04/23 Suggest exiting the trade on a close below -0.0100.
Visit our Spread Website for more information about our daily newsletter, Traders Notebook.
© 2010 by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc
Is it true that markets trend only 15% of the time?
by Joe Ross
There is almost always something trending somewhere in some time frame. Trending means the market is moving from a definable top to a definable bottom and from a bottom to a top. If traders cannot define the trend on one chart, they should look at another time period chart for the same stock or commodity, where the trend is more evident.
Believing markets trend only 15% of the time, popularly espoused by market technicians, is in one sense foolish. Long accumulation phases on daily charts, experienced by markets like sugar and silver, may not readily expose their trends until weekly and monthly charts are examined. Once the accumulation phase is identified, traders must wait for valid breakouts to occur before entry. The Latin roots to the word accumulate means to "add to the pile." A cumulus cloud is a pile of water vapor. There are three common congestion phases, and accumulation at the market bottom is one of them. The up move and down move have congestion phases as the market digests previous gains and losses, then usually continues the trend prior to the congestion. Congestion occurrence in the distribution phase, at a market top, is opposite the low range accumulation congestion phase. Congestion phases usually have low volatility and well defined five to ten day high and low price ranges, the opposite of the volatile distribution phase.
LEARN FROM MASTER TRADER JOE ROSS
RECEIVE $500 off for attending
Joe Ross' live trading seminar
in Dallas/Ft. Worth, Texas on October 23-24,
if you register today, or by August 15, 2010.
This trading seminar, including how to trade the E-mini S&P, Forex, and Stocks, will forever change your understanding of the markets and be a life-changing experience for you. The seminar tuition includes comprehensive training materials, lunch, and refreshments on both days.
Many traders lose far more money in a few days than the price of the seminar. When you trade using the techniques you'll learn at the trading seminar, your losses will be considerably less, and your trading account will continue to grow as you apply what you learn.
I WANT TO ATTEND THE
TRADING SEMINAR IN DALLAS/FT.WORTH, TEXAS ON OCTOBER 23-24, 2010
RESERVE MY SEAT NOW!
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NEXT LIVE CHAT SESSIONS WITH JOE ROSS:
Wednesday, April 28, 2010
Wednesday, May 05, 2010
Wednesday, May 12, 2010
Wednesday, May 19, 2010
Wednesday, May 26, 2010
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hope you will join us!
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NEXT EURO CHAT SESSION WITH JOE ROSS:
Wednesday, April 28, 2010
Wednesday, May 05, 2010
Wednesday, May 12, 2010
Wednesday, May 19, 2010
Wednesday, May 26, 2010
We hope you will join us!
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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. |
There is no "one" way to trade correctly. Trading is as individual in its nature as anything in this world can be. The only thing that is right is what works for you.
If
you are willing to share what works for you, then we welcome you.
Your ideas may help someone else on his/her 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
over five decades ago. He is now in his seventh decade
of life, so he has the experiences of many years that he is willing
to share, as he is already doing through his books, seminars and newsletters.
We hope you decide to join us in our forum to make your contributions
as well.
You can follow this link to our forum now!
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.
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 receive all your issues of Spread Scan, so that you can continue to enjoy learning through the best free educational trading information available, and so that we can inform you about additional educational services and products to help you grow as a successful and profitable trader.
Educator for Spread & Swing 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 preference. 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.
Andy Jordan was born 1965 in Germany, but is currently living in the Caribbean. He has studied mathematics and business administration in Regensburg and Hagen, and holds a PhD in mathematics.
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™, and has set new standards for low-risk trading with his concepts of "The Law of Charts™ " and the "Traders Trick Entry™." Joe was a private trader and investor for much of his life, but a serious health situation in the late 80'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 trading approach.
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 tutoring student, a successful trader, wrote: "You have no idea how much improvement in my life and in my trading efforts have those three days with you brought to me."
Joe Ross, the CEO of Trading Educators, 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 the primary author and Editor-in-Chief of the company's newsletters: Chart Scan™, Spread Scan™, Options Scan™, and Traders Notebook™. 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"
Joe sets forth the mission of Trading Educators as follows:
For information about Joe Ross and Trading Educators, please follow this link...
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Copyright 2010. Published by Trading Educators, Inc.
Spread Scan is a complimentary educational letter.
The information contained in this educational letter has been carefully gathered from sources believed to be reliable, but accuracy cannot be guaranteed. Readers should not assume that anything written here is to be considered as a recommendation, or that any performances shown will equal performances of the past.
This educational letter is intended solely for purposes of information and does not purport to provide legal, tax, or individual investment or business advice.
Readers should consult with expert legal, tax, business, and financial counsel before considering any action on the information contained in this newsletter. The publisher and its associates, editors or employees may have taken positions in and may from time to time make purchases or sales within markets and market vehicles mentioned herein. Reproductions of this newsletter are prohibited except by permission.
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 Joe's 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 U.S., Canada, or any other jurisdiction 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.
LET JOE ROSS OPEN YOUR EYES, AND LET HIM GUIDE YOU INTO SUCCEEDING AS A TRADER IN TODAY'S MARKETS
It has always amazed us that normally astute professional individuals and business people will embark on a course as serious as trading — without seeking professional help.
Thousands who enter the field of trading try to figure it out for themselves, and they end up losing far more money trading from ignorance than the cost of our training. People spend thousands of hours and dollars in a vain attempt to go it on their own.
No one is beyond the need for professional help when it comes to futures trading. Even professional traders come to Joe for help and additional training. Here is what Joe's Private Tutoring students say about the training:
"Fantastic knowledge! Joe showed me simple, easy ways to understand and trade the market. l learned how it works and how to take advantage of it. Now when I look at the chart I can actually understand what l see. Sometimes simplicity is hardest thing to achieve. Joe certainly did it. Make a good investment and learn from the master. For me it was worth every penny." -- Bogdan Podkulski - USA / NJ
"My trading has improved dramatically since I had my private training with Joe. All aspects necessary to become a successful trader were covered in detail: entry techniques, trade management, and money management. Joe has shown me how to take high probability trades with limited risk, which has made my trading much more profitable and enjoyable." -- William Hove, WI, U.S.A.
Reserve your training session fast! Joe's teaching time is limited!
Don't hesitate too long if you want to be taught by a professional and successful long-time trader. Joe reserves only a certain number of days each month for personal teaching time, and the openings on his calendar for private teaching are booked fast, so you need to plan well in advance.
Follow this link to visit Joe's website at Trading Educators to find out more about the private tutoring and to schedule your own training with him, in person or online.
What would it be like to discover trades that trend, and trend, and then trend some more?
The best traders find ways of trading the markets that enable them to get in and out with the greatest probability of profits — repeatedly. That takes experience, usually years and years of it, watching and participating in the markets day in and day out — a very expensive education in more ways than one.
How would you like to be able to take advantage of repetitive events to the point of 80% or greater accuracy time after time after time? What would it be like if you could discover trades that trend, and trend, and then trend some more? You'll find out in Joe Ross' Trading Spreads and Seasonals manual. Follow this link to find out more...
Visit Joe Ross' Online Blog "Trading for a Living"
JOE'S LATEST BLOG ENTRIES:
Cultivating Self-Control and Discipline
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