Edition 307      Wednesday, July 14, 2010

Spread Scan with Commentary

Commentary by Andy Jordan Trader, Trading Mentor for Spread & Swing Trading Trading Educators, Inc. 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.

Thank you to those of you who helped us by sharing your thoughts regarding Spread Scan through filling out the brief survey we offered last week. If you haven't yet filled out the survey, please follow this link to the short feedback form. I would really appreciate everyone's input regarding my free Spread Trading Newsletter. Thank you so much. Weekly Spread Scan Example This week we look at CK1 – CZ0: long May 2011 Corn and short December 2010 Corn Today we consider a Corn calendar spread: long May 2011 Corn and short December 2010 Corn (CK1 – CZ0). The spread dropped down to its April and May lows after moving mainly sideways in June. Will the spread stabilize again at this level, or will it move even lower? Even if this level looks interesting for an entry, we might need to wait until the spread can gain some strength to the up side.

Previous Trades

On June 20 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a Live Cattle calendar spread: long October and short December 2010 Live Cattle (LCV0 – LCZ0) at a close above -2.275. Suggested risk is $300; suggested first target at -1.200, then higher. Basis is seasonal (6/18 – 7/29) and a 1-2-3 low."

Here's how we suggested managing this trade:

06/21  Suggest entering the spread at -2.00 limit GTC.
Please note – I am increasing the risk to $300/spread.
06/22  It was possible to enter the spread at -2.00. Suggest exiting the spread at a close below -2.70.
06/24  Spread doesn’t want to move up. Suggest moving the stop closer and exiting the spread on a close below -2.45.
07/01  Suggest moving the stop on close slightly higher to -2.35.
07/08  Suggest exiting if the spread doesn’t move above -2.00 at the open.
07/09  Out at approx. -2.30 with a small loss.

Visit our Spread Website for more information about our daily newsletter, Traders Notebook.

Andy's Trading Articles

© 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

Student's Question: "Andy, is learning the trading business like learning any other business?"

Andy: Learning the business of trading is basically no different from learning any other business. The important thing is that you realize that trading is a business that must be studied and learned correctly, because that determines your success or failure. Winning means learning major guidelines and concepts that you repeat so often in your own behaviour that they become good habits. These good habits then become automatic behaviour patterns, which are formed as brain pathways by the rewards you get for trading well, and the punishment you receive from trading poorly.

When you associate yourself with other traders, try to associate with those who are building their personal net worth, not just talking about it. True success is silent. Try not to do something just because everyone else is doing it. Successful traders are rare. If the crowd is doing it, watch out!

© 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

FOLLOW THIS LINK TO SEE AN OVERVIEW OF OUR PRODUCTS AND SERVICES FOR OUR
SUMMER SALE 2010

Ambush Trading Method
Trading Performance

Once again we're sharing statistics of how well Ambush performed in two popular markets during the last few weeks. This time we picked the Swiss Franc Future traded at the CME. Please notice that the trades could have also been taken with almost equal results in the USD/CHF forex market.

As you can see, USD/CHF didn’t make large moves for a few weeks, and always consolidated for a couple of days after a big move up/down. These are favorable conditions for Ambush!

Trade Example 1: Swiss Franc Future
traded at the CME

Please take a look at the results of those trades 
(without commissions) trading one Swiss France futures contract at the CME:

As you can see, Ambush managed to make a total of $7,275 profits trading one contract.

Trade Example 2: Euro - Japanese Yen

EUR/JPY is one of the most popular forex-crosses. But it can be difficult to trade, and definitely was during the last couple of weeks. Let’s see how Ambush did:

Please take a look at the results of those trades 
(without commissions) trading one 100k lot of EUR/JPY:

Now that you have a taste of what the Ambush Trading Method™ is all about, we hope you will make this incredibly effective trading method part of your trading today. With this trading method you can ambush many stock index futures, commodity futures, currency futures, forex pairs, or ETFs or CFDs on any of the markets mentioned. If you want, you can ambush more than one market daily.

Marco Mayer has come up with a safer and easier way to trade a large variety of markets, with the potential of locking in a steady stream of profits. If this is what you are looking for, Marco Mayer's Ambush Trading Method™ is for YOU. The Ambush Trading Method™ is designed to perform best in sideways or slowly trending (stair-stepping) market conditions, and is more likely to fail in strongly trending, volatile markets. Statistics tell us that markets trade in congestion most of the time, and trend only 20% of the time. Thus the method will perform well most of the time, but you can further improve your results by avoiding strongly trending markets.

Will this Method make you rich overnight? Not a chance. But Marco Mayer’s Ambush Trading Method™ will make you steady money with more controlled risk.  As your account grows, you can trade an increasing number of contracts, and then the results can become extremely exciting.

If you would like a conservative, easy to follow method, then Marco's Ambush Trading Method™ is for you. Order the Ambush Method during our Summer Sale Event at 20% OFF !

FOREX AT THE MARKET TRADES

On July 1 we told subscribers of our professional Forex trading newsletter Forex at the Market, "Consider buying EUR/USD at 1.2306 stop-market. Suggested stop at 1.2236; suggested first target at 1.2376 (move stop to breakeven when filled); suggested second target at 1.2516. Basis is a possible strong breakout above 1.2300.”

Here's how we suggested managing this trade (trade is still open):
07/01 Long at 1.2306
07/01 First target hit at 1.2376; suggested stop at breakeven (1.2306)
07/01 Second target hit at 1.2516; suggested stop at 1.2430

You can greatly benefit from trading the recommended currency pairs. 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.

If you have questions, please don't hesitate to send them to
support@fx-atm.com

We want you to have the greatest success in trading the Forex currency pairs. I (Marco Mayer) am looking forward to helping you to learn and grow your skills as you trade this huge, but extremely volatile, Forex market. During these turbulent times, I will be at your service through the newsletter and the special Forum, to help you make good choices. And, if needed for special help, I am also available via e-mail.

We look forward to your starting your subscription.
http://www.fx-atm.com/subscriptions.html

Best wishes for success in your currency trading,

Your Editor of FX-ATM

MARCO MAYER
http://www.fx-atm.com

A WEALTH OF SPREAD TRADING INFORMATION & EDUCATION:

If you wish to review Spread Scans from the past 3 months,
please follow any of the following links to its weekly issue:

Trader's Live Chat and Trader's Euro Chat with Joe Ross

NEXT LIVE CHAT SESSIONS WITH JOE ROSS:

September 1, 2010

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 CHAT SESSION WITH JOE ROSS:

September 1, 2010

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.

Traders Forum - for Traders with passion and a desire for increasing knowledge

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!

About Spread Scan

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.

About Andy Jordan

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.

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™, 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 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:

• 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...

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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.

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