Edition 329      Wednesday, December 16, 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 LCG1 – LHG1: long February Live Cattle and short February Lean Hogs Today we consider an inter-market meats spread: long February Live Cattle and short February Lean Hogs (LCG1 – LHG1). After moving up strongly in September and October, the spread went into a sideways movement. The spread is currently testing the #2 of its interim November 1-2-3 low, and might change its direction once again to the upside. Statistically, the spread has a strong tendency to move north between December 13th and December 24th, and might push the spread up to 32 or even higher. Unfortunately, the volatility of inter-market spreads is not easy to handle, and requires a high risk.

Previous Trades

On November 28 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a Natural Gas calendar spread: long March and short February Natural Gas (NGH1 – NGG1) at -0.04 limit. Suggested risk per spread contract is $400; initial projected objective is $400, then higher. Basis is seasonal and an uptrend channel. Comment: I want to use a time stop of 12/10 on this spread."

Here's how we suggested managing this trade:

11/29  In at -0.04. Suggest exiting on a close below -0.06.
12/02  Suggest moving the stop closer and exiting on a close below -0.05.
12/08  Out at approx. -0.037.

Unfortunately, we got out of this trade a few days too soon!

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 to our Spread Trading Website to read through 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

Higher return on margin

Spreads on futures normally require lower margins than any other form of trading, and can be even lower than the margin requirements for option trading. The result can be greater efficiency in the use of your capital. It is not unusual to be able to trade 10 spreads putting up the same amount of margin as required for 1 outright futures position.

Countless trading opportunities

Spreads avoid problems associated with a lack of liquidity. You can trade in less liquid markets. Since you can trade where there is less liquidity, you have more trading opportunities than when not trading spreads.

Spread Trading is end of day trading

Spread trading can be based on End Of Day trading data and may not require expensive live data or an expensive charting software. With the right broker, your trading takes place whenever YOU have the time. You are not necessarily tied to any specific trading hours, since entry or exits can be studied and planned the day before. In spread trading a good broker is essential, and can make the difference between winning and losing!

Personal Message from Andy Jordan
to all Spread Scan Subscribers

Dear Traders, 

I personally enjoy the days around Christmas. We (my wife and I) always try to be in Germany for several weeks, or even some months, during the winter time. Probably because I grew up in Germany, for me Christmas and cold weather go hand in hand. It is almost impossible for me to get a “Christmas feeling” in the Caribbean with 40° Celsius outside, and the only ice you can get is the one from the fridge. But the most important part of Christmas for me is to be with the ones I love.  

I wish you and your loved ones a Merry Christmas, and a few quiet days at home with your families and friends. 

All the best, 

Andy Jordan
and the Team at Trading Educators, Inc

Our Websites at Trading Educators
http://www.tradingeducators.com
http://www.spread-trading.com
http://www.options-trading-education.net
http://www.fx-atm.com

Joe Ross´ Free Weekly Chart Scan Newsletter

See how to apply Joe`s concepts in today`s markets

The free Chart Scan weekly newsletter is designed to assist you in becoming a better trader by showing you, in the context of the markets, how to apply the Law of Charts™ in today's markets.

In this newsletter you will see applications to a variety of markets, including forex, futures, and stocks. Accompanying each week's chart is a valuable trading article by Joe. These gems of wisdom have helped many traders become more successful. Follow this link to sign up today!

FOLLOW THIS LINK TO SEE AN OVERVIEW OF OUR SELECTED PRODUCTS AND DETAILS OF THE OFFERS FOR OUR CHRISTMAS SAVINGS EVENT - OUR LAST PROMOTION FOR THIS YEAR! GRAB IT AND GIVE YOURSELF A GIFT FOR THE HOLIDAYS!

DAY TRADING SEMINAR FOR E-MINI S&P, FOREX, AND STOCKS, LIVE ONLINE, WITH MASTER TRADER
JOE ROSS

APRIL 2-3, 2011

Joe says: "You owe it to yourself to learn what I teach at this seminar. Please try to find a way to attend. You will not be sorry."

WHAT YOU LEARN AT THIS TRADING SEMINAR WILL DIRECT YOU towards becoming a winning trader, regardless of what you day trade.

Joe will give you the information you need to help you succeed beyond your wildest dreams. He shares with you the ultimate achievement: "What you learn at this trading seminar will enable you to not only day trade any market in any time frame, but also to position trade, swing trade, intermediate-term trade, or long-term trade any market, any time, anywhere in the world, as long as you have a source of data and a way to place orders."

Learn from Master Trader Joe Ross — we know this online seminar will forever change your understanding of the markets, and be a life-changing experience for you.

AMBUSH METHOD TRADE AND PERFORMANCE REPORT

This month we show you how Ambush performed in one of the most popular currency markets, the Swiss Franc future traded at the CME. Of course, these trades could also have been taken in the Forex-Spot market (USD/CHF). Let’s look at the Swiss Franc during November. As you can see, we had an explosive move up at the beginning of the month, then a sloppy move down to where we started, and for the rest of the month the Swiss France actually didn’t move very much. Let’s see how Ambush performed...

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

As you can see, Ambush managed to
make a total of $2.888 profits,
trading one contract.

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. Find out more..

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 1-week Christmas Savings Event at 15% OFF (valid only December 15 through December 24, 2010). Discount will be applied during checkout.

THE MOST COMPLETE SPREAD TRADING PROGRAM

No one else offers as complete a spread trading program as you find at Trading Educators. We are #1 in educating successful Spread Traders, and we have the most original and best resources available to you — resources, service, and professional help you won't find anywhere else from anyone else.

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.

A WEALTH OF FREE 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:

Wednesday, December 15, 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:

Wednesday, December 15, 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, 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...

Safe Senders List

This email was sent to you by Trading Educators. Help ensure that your Spread Scan email newsletters are always delivered to your inbox (rather than to bulk or junk folders).
Log in to your email account now and add
info@spread-trading.com to your address book, contacts or “Safe Senders” list. Follow this link to get detailed help on how to add this newsletter to your safe senders list, depending on your e-mail service provider.

Unsubscribe or change subscription

To change your subscription or to unsubscribe, scroll past the end of this newsletter and click the "unsubscribe" link.

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.

Legal Notice

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.