Edition 317 Wednesday, September 22, 2010
Edition 317 Wednesday, September 22, 2010 |
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Commentary by Andy Jordan
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Weekly Spread Scan ExampleThis week we look at HOH1 – HOZ0: long March 2011 Heating Oil and short December 2010 Heating Oi Today we consider a Heating Oil calendar spread: long March 2011 Heating Oil and short December 2010 Heating Oil (HOH1 – HOZ0). This spread was trading sideways in July and August, before dropping sharply lower to 3.60 in September. Right now we can see a possible 1-2-3 low on the chart above. A close above 4.30 (the #2) could be used as an entry signal, while a drop below the #1 would negate the chart formation (in this case, the spread might move even lower). |
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On September 12 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a currency spread: long December Euro FX and short Japanese Yen MOC on Monday. Suggested risk is $2,500; initial projected objective is $2,500, then higher. Basis is seasonal (9/13 – 9/30). Comment: This trade is mainly based on statistics with 10 winning years out of 11 and a tiny 1-2-3 low. Because of the volatility of this spread we need to calculate a very high risk. Traders with a smaller account might want to check with the broker about the Minis (1/2 the size of the big contracts) or use ETF’s (FXE - FXY)."
Here's how we suggested managing this trade:
09/13 In at approx. 8.92. Suggest exiting the spread on a close (same day) below 7.00.
09/15 Spread moved up nicely today and it was possible to cash in the first lot at approx. 11.92 (email). Suggest exiting the spread on a close (same day) below 9.0.
09/16 Suggest exiting the spread on a close (same day) below 10.0.
09/17 Suggest exiting the spread on a close (same day) below 10.4.
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
How to approach trading - Develop a Trading Plan
The main message I want traders to understand is how important the disciplined execution of a well thought out trading plan is in today's markets. Nobody knows for sure what a given market will do next. Having a plan of attack allows you to successfully cope with the uncertainty that is an inherent part of trading. I think it makes good common sense to have a well thought out plan of attack for trading all markets.
Make time to study and organize a trading plan for each and every trading day. This is a serious business that requires dedication and discipline to succeed. Arm yourself with the best tools you can find and make sure your own personal armor has no weak points. Trade with an objective of doing the right thing, which is sticking to rules! Making money, which is a second objective, derives from sticking with your trading plan. Let your strengths be in that you are a trader who is able to take losses quickly and think defensively. Learn to use a time stop, so that if prices are not moving your way when you expect them to, get out. Also be quick to take profits when they are there — leaving some part of your position in the market in case the move is strong in the direction you want it to go.
SPREAD TRADING - GET A PROFESSIONAL
MENTOR
BY YOUR SIDE
If you need a helping hand to turn your spread trading into a successful business, we encourage you to sign up for our
one month long "Spread Mentoring Program," a complete training experience with our professional spread trader, Andy Jordan.
The training is for all traders - beginning, intermediate, and advanced.
Together, you and Andy Jordan will define the steps necessary to reach your goals, and Andy will give you a detailed plan of how to grow your trading capabilities to a professional level. During that one month period of time, you will be his only student.
OUR GOAL FOR YOU:
At the end of the one-month mentoring program, you will be able to trade spreads ON YOUR OWN! You will have YOUR OWN trading plan, and you will know precisely how to trade in a profitable and consistent way. For further details regarding Andy Jordan’s Futures Spread Mentoring Program, please follow this link to our Spread Trading Website.
Learn from Master Trader Joe Ross. We know this live
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If you wish to review Spread Scans from the past 3 months,
please follow any of the following links to its weekly issue:
July 2010 |
August 2010 |
September 2010 |
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NEXT LIVE CHAT SESSIONS WITH JOE ROSS:
Wednesday, September 29, 2010
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hope you will join us!
Here
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You can also view our saved weekly Chat Logs in case
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NEXT EURO CHAT SESSION WITH JOE ROSS:
Wednesday, September 29, 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.
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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.
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Your ideas may help someone else on his/her way to success. In turn,
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Joe Ross has been trading the markets, virtually all of them, beginning
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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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Spread Scan is a complimentary educational letter.
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IMPROVE YOUR MANAGEMENT OF YOURSELF AND OF
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In "Trading Is a Business" Joe teaches you how to do both, as well as to deal with risk management, money management, and trade management. You learn the most effective mindset.
Joe Ross' Trading Is a Business continues to be not only our bestselling book, but the one Joe says is the most important book he’s ever written.
Trading Is a Business is a book that has changed many people's lives over the years. Many traders say that after reading Trading Is a Business, they became profitable for the first time.
Are you ready for this empowering book?
GREAT! Please follow this link to visit our website
The "Life Index for Traders™" simplifies the process of tracking, charting, and evaluating your trading and your
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The Life Index™ is a simple concept that, when diligently applied, will guide you into becoming a more successful trader as well as a more successful person.
Joe Ross developed it many years ago to help build the right kind of character and to develop the right mindset for trading.
"I truly believe Life Index for Traders is an excellent and very helpful tool in becoming better - a better, smarter trader, but also a better, more fulfilled person. I first found it in Joe Ross' book "Trading Is a Business" which to me is certainly the most valuable book about trading. Life Index for Traders e-book is so nicely done that I have soon notice I have become “addicted” to it. It has rapidly become a pleasant and easy to follow habit. It is not only about constant self-evaluation. I think one of the most important things about the Life Index is that it shows you on every day basis what is important for you to do as a trader. And sooner or later you do it. You implement new good habits in your life, one by one. Excellent tool! Extremely efficient! Thank you Joe!!!"
-- Michal Abel, Poland
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We know that many of you are looking for a smarter and better way to be more consistently profitable in the E-mini S&P 500 market, and we are happy to let you know that through Joe's "Day Trading the E-mini S&P 500" e-book, you have finally found what you are looking for.
Be more consistently profitable in the
E-mini S&P 500
We have received lots of great feedback ever since we released this e-book. We are really excited to know how much our clients have profited from studying Joe's E-mini S&P 500 course. Here is what
E-mini Traders have to say:
“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.
"Full Advise with great emphasis on market dynamics, an essential ingredient to trading success.”
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“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
“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.
"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
“I thoroughly enjoyed the book and finished it within the first few days of purchase. The information about the insider was an eye opener." -- C. Croeser, South Africa
You'll find more trader testimonials if you visit "Day Trading the
E-mini S&P 500"
e-book
The truth is simple: the charts of the markets follow a law. Professional Trader Joe Ross calls that law:
The Law of Charts™
Joe's trading students have told him that once they understood the markets, all they ever needed to trade them profitably is an understanding of the Law of Charts™ along with the dynamics of the market.
This Online Video gives you a presentation of the Law of Charts formations, followed by a very detailed explanation of how to use the Law of Charts to make profits in the markets.
We know you and your trading will benefit greatly from Joe Ross' The Law of Charts.
Take
“The
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and explores the astonishing reality of the Law of Charts in the markets.
The Video Seminar brings you the pure simplicity of what the markets
are all about. Trading does not have to be complicated.
Everything you need to know to make money in the markets is right there
before you when you look at a price chart.
Follow this link for more detailed information about this
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