Edition 327      Wednesday, December 1, 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.

Weekly Spread Scan Example This week we look at CU1 – CK1: long September Corn and short May Corn Today we consider a Corn calendar spread: long September Corn and short May Corn (CU1 – CK1). After dropping like a rock in October, the spread has recovered and now seems to be in an uptrend. Because the spread may drop from time to time, I recommend trading at least 2 lots, entering the first lot now and the second on a drop down to -35 or -40 (or on the way up in case the spread doesn’t drop). Because the seasonal up move of the spread might last until April, a trader might need a lot of patience for this trade.

Previous Trades

On November 1 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a Crude Oil calendar spread: long March and short January Crude Oil (CLH1 – CLF1) at 1.00 limit GTC (first lot). Suggested risk is $500 per spread. Basis is seasonal (10/26 – 12/11) and a possible resistance around 1.00. Comment: Once again I recommend trading at least 2 lots; entering the first lot now, and adding on the second later."

Here's how we suggested managing this trade:

11/02  In at 1.00 with the first lot. Let’s see how this spread develops before we add on the second lot.

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

Be sure to read through our powerpoint spread presentation which describes the rationale for trading spreads, and gives you quite a bit of information about what they are and their advantages.

Follow this link
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Joe Ross' free powerpoint presentation:
Spread Trading - A Whole New Way To Trade

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

Advantages of Spread Trading - An Overview

Spread Trading is long term trading, and therefore

- Less stressful than intraday or swing trading. You don’t have to be glued to your monitor all day long. With the right broker you are independent of any trading hours.

- Can be easy to learn - you simply focus on the difference of the legs involved.

- Can be a forgiving type of trading – because you will often be following the overall trend and not trying to make a profit of only a few ticks, the timing of the entry/exit of your trade becomes less significant.

- The emotional element (discipline and self control) is less significant.

Spread Trading is "purer"

Spreads highly reduces the problem of stop running. You are long on one side and short on the other. It’s harder for the market movers to run your stops. In that respect, spread trading is a more pure form of trading.  The lack of stop running is not a guarantee that you will win, but it does provide the trader a more level playing field.

To be continued...

Joe Ross´ Free Weekly Chart Scan Newsletter

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If you'd like to make all your hours of effort in studying the markets into profitable trading, to rid yourself of the mental gridlock that often plagues traders, and to truly become an intuitive trader, then this might be the most important book you'll ever read. In it, Joe Ross teaches you the business of making money in the markets. He shows you how to make your trading profitable by running your trading as a business, with an economic motivation and with sound business management. Follow this link to our Trading Educators website for more details.

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Trading Educators' staff look forward to assisting you in becoming a successful spread trader, and we wish you all the best that life and trading have to offer.

Get started in Spread Trading by learning simple and effective trading techniques and tactics.

DAY TRADING FOREX

Trading forex is heavily marketed and popular, but it is also deadly. The e-mails and letters we receive attest to the fact that most people who attempt to day trade forex are losing their money. The turnover rate is atrocious. Because of the pain Joe Ross has seen, he decided to teach you how he day trades the currency pairs.

Joe Ross has written an e-book entitled “Day Trading Forex.”

Joe says: "This is not a manual for raw beginners. My purpose here is to teach you how to trade forex without getting yourself into a mess of trouble. In this manual, you will find the essential understanding of how prices move and how to trade the various situations that you see on the price chart that is live and moving right before your eyes."

Joe shows you the trips and traps of forex day trading that you need to know in order to avoid the fate of so many other traders. If you want greater safety in your trading, Joe shows you where to find it. He tells you about where the greatest forex profits are made. There is much more Joe Ross shares with you in the pages of “Day Trading Forex” - follow this link to our website to find out more.

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

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Wednesday, December 1, 2010

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NEXT EURO CHAT SESSION WITH JOE ROSS:

Wednesday, December 1, 2010

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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.

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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, 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:

• 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.

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