Edition 321 Wednesday, October 20, 2010
Edition 321 Wednesday, October 20, 2010 |
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Commentary by Andy Jordan
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Weekly Spread Scan ExampleThis week we look at LHM1 – LCM1: long June 2011 Lean Hogs and short June 2011 Live Cattle Today we consider an inter-market meats spread: long June 2011 Lean Hogs and short June 2011 Live Cattle (LHM1 – LCM1). After moving up strongly in September, the spread fell back down to its August low last Friday. Will this low hold, or will the spread fall even lower? Right now I don’t see any signs of a turn around, and therefore it might be wise to wait a few more days before jumping into this trade. The statistic (10/25 – 01/28) regarding seasonality looks promising with 14 profitable trades in the last 15 years, but with a draw down of more then $1,000 in 4 years. Inter-market spreads can move fast, and for the spread above I would recommend a risk of about $1,000 per spread traded. |
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On September 15 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider selling the December 30-Yr T-Bonds at 130^14 stop market; suggested stop at 130^30; suggested first target at 129^30. Basis is a TTE in front of a RH."
Here's how we suggested managing this trade:
09/16 Short at 130^14; cashed in the first lot at 130^04 (e-mail); suggested stop at b/e.
09/17 Stopped out with the second lot at b/e.
Visit our Spread Website for more information about our daily newsletter, Traders Notebook.
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Minimum purchase is $150.
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We urge you to shop early for Joe Ross' hardcover books for yourself or for holiday gifts to others. This is the last time this year they will be available at sale prices. Also remember that shipping outside the United States is slower than normal during the holiday season. To take advantage of the discounts on Joe's hardcover manuals during our FALL SALE, for now or anytime during the rest of 2010, you need to place your order by October 25. Please follow this link to find out more about our FALL SALE 2010. We truly value you as friends and customers. All the best. Joe Ross |
© 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 - Follow the Market
After you've determined your strategy and the market or markets you will trade, you can start following the price action. It is important to follow each market consistently to see the trading opportunities as they develop. Jumping around from one market to another often leads to missed or late execution of your method. I think it's important to let the market tell you what to do. I'm sure many of you have heard the saying, "The trend is your friend." There is truth in that, but not all good trading must follow the trend. Since these days markets trend so little, perhaps we should come up with a new saying: “The swing is your thing.” How about this one: “The setup is my get up”?
I don't generally concern myself a lot with how much a market is going move overall. But I am concerned with how much the market will move minimally. I want to guarantee myself a minimum move a high percentage of the time. I'm satisfied with being on the right side of the trade. However, I'm constantly asked; "Where do you think prices are going?" or "When should I get out of the move?" My answers are usually: "Prices will move in the direction of the trade — they will go where they want to go." And "Get out of a trade when it quits going your way, or you’re satisfied with the profits you’ve made." A potential objective number of points, ticks, or pips are most useful when you are trying to decide which of several different markets to trade, or when deciding how much of your capital to allocate to a particular trade.
THERE ARE IMPORTANT DEVELOPMENTS IN THE MARKET THAT ARE TAKING PLACE!
LAST CHANCE TO REGISTER
THURSDAY OCTOBER 21
DON'T MISS OUT!
Dear Spread Scan Subscriber,
We want our Spread Scan subscribers to know the importance of Joe's upcoming 2-day Day Trading Online Seminar, October 23/24, 2010. Your last chance to register is Thursday, October 21, 2010, 11.59 p.m. U.S. Central Standard Time. Follow this link to our website to register NOW!
Major changes are taking place in the markets! Joe says: "Anyone who is not current on what's going on needs to be re-trained in how to trade in today's markets."
Instead of the cost and hassle of your having to travel to this seminar, Joe Ross will be giving the material online, live, using the facilities available to us via the Internet. There will be 2-way communication, so that you can ask specific questions at appropriate times.
Joe is truly looking forward to meeting with you in October 23-24, 2010. We know you won't want to miss what Joe will be showing you this year. We call the seminar "Day Trading." No matter which markets you trade, and no matter which time frames you use, what you learn at the seminar will apply to stocks, futures, or forex. One of our top students, now a successful professional trader, uses what he learned at the seminar to trade options.
Don't miss out! Follow this link to find out more, and register today. Your last chance to register is Thursday, October 21, 2010, 11.59pm U.S. Central Standard Time. If you previously attended the seminar, or if you had private tutoring with Joe Ross, you may need a refresher to be aware of current changes in the markets. Please e-mail us at seminar@tradingeducators.com for special arrangements.
"The seminar was a real eye opener. Techniques shown can be put immediately to use. No BS approach." -- John Gaspar, Canada
"As usual, Joe's teachings are great. He teaches without all of the indicators which tend to only confuse the issue. Just use what you see on the charts. If you can do just that you will be many dollars ahead. I know this is hard to do but trust me, it works."
-- Richard Frech, USA (TX)
"In short, profitable information and profound wisdom imparted with great humor. I especially liked the five set ups and the use of the ATR to determine where to place the stop, what your objective should be, which markets to trade, etc. If I can effectively implement what Joe presented I should become a consistently profitable trader." -- Thomas Cline, USA
"This was by far the best and most informative trading seminar I have ever taken. I never understood the reasoning behind what motivates the bigger traders in the market and how we are affected until now. It also taught me to proper trade and money management which I was never exposed to in the past. Now I know why making money in the markets was so difficult but now I know I am fully equipped to approach the markets correctly. Well done. Thank you so very much Joe."
-- Joseph R., USA
Visit our website to register today. Your last chance to register is Thursday, October 21, 2010, 11.59pm U.S. Central Standard Time.
DAY TRADING SEMINAR FOR E-MINI S&P, FOREX, AND STOCKS
WITH MASTER TRADER
JOE ROSS
OCTOBER 23-24, 2010
How YOU can have a profitable
Trading Business trading Futures
Whether you've been trading for years or are just a beginner (or anywhere in-between), there is much basic detailed information about this business that most traders do not know, and are unaware that they need to know.
You can increase your chances for trading success when you know and understand the background and workings of the business of trading. Joe's Futures Course arms you with vital information and insights - all contained in 21+ lessons of "From the Beginning."
THE MORE YOU KNOW, THE BETTER OFF YOU WILL BE
Joe Ross teaches you the basics so that you have the necessary fundamental and background knowledge and equipment to get you started, and to help you grow as a trader. The more you know, the better off you will be.
You need to know the rules and the players;
you need to know what can hurt you and
what can help you.Order your Futures Beginners Course e-book during our
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Minimum purchase is $150.
This course, Joe's Futures Course "From the Beginning," is designed for today's Futures Trader. For more details about the course or how to order, please follow this link to our website...
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NEXT LIVE CHAT SESSIONS WITH JOE ROSS:
Wednesday, October 20, 2010
We
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:
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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.
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The "Life Index for Traders™" simplifies the process of tracking, charting, and evaluating your trading and your
life, saving you valuable time.
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.
Order the LIFE INDEX FOR TRADERS WITH BONUS TOOL "EQUITY EVALUATOR" during our
Fall Sale Event
at 10% OFF!
Discount will be applied during checkout.
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
When you
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The Equity Evaluator™ lets you see exactly how well you are doing in the markets. But it does even more than that. The Equity Evaluator tells when you need to stop trading long enough to take a serious look at your Life Index. It tells you when you need to paper trade, and it tells you when it's okay to trade with real money. The Life Index for Traders (LIFT) and the Equity Evaluator™ work hand-in-hand to help ensure your trading success. Follow this link to find out more.
Joe Ross, creator of the “Ross Hook™,” has set new standards for lower-risk trading with his concept of "The Law of Charts™." The concepts taught and demonstrated in his manual Trading the Ross Hook are applicable in any market and any time frame, and can be used for daytrading or position trading.
Order "Trading the Ross Hook" during our
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In Joe's manual "Trading the Ross Hook", you learn exactly what Ross Hooks are. You see their origins and what causes them to occur.
Joe shows you, step-by-step, how to identify Ross Hooks, and how to filter them so that you trade only the best hooks. You see how to manage Ross Hook trades, how to manage risk, and how to manage your money when you trade these very lucrative market formations.
Chapter after chapter, and example after example, Joe shows you how his students are successfully trading Ross Hooks using simple studies that can be found in most trading software packages. Then you see how he personally trades hooks, using chart reading without technical indicators or technical analysis of any kind.
“Joe's "Trading the Ross Hook" is by far the most important book for anyone in the trading business to read. It opened my eyes and has allowed me to understand the price mechanics of the markets. Literally, if you master the material in Trading the Ross Hook, you need look no further for information that will provide you with the ability to be a full-time, profitable trader. In my opinion as a successful, profitable trader, it is one of the most important works in the history of trading. Simple and applicable, what more could one ask?”
T. C., Canada/Manitoba
Follow this link for more about "Trading the Ross Hook"....
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.”
-- 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
“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
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