Edition 331 Wednesday, December 29, 2010
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Edition 331 Wednesday, December 29, 2010 |
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Commentary by Andy Jordan
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Before I start this week's Spread Scan Example, I'd like to ask you for a favor — to take a minute to give me some feedback about the Spread Scan Newsletter. Here is the link to the short feedback form. I would really appreciate your input on this free spread trading newsletter.
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On December 5 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a Live Cattle calendar spread: long August and short February Live Cattle MOO. Suggested risk is $400; initial projected objective is $400 then higher. Basis is seasonal (11/15 – 12/10) and a 1-2-3 low. Comment: This trade has to move immediately (time stop is Friday)."
Here's how we suggested managing this trade:
12/06 In at approx. -0.300. Suggested stop on close at 0.800.
12/08 It was possible to cash in the first lot at 0.500; suggest moving the stop on close to -0.250.
12/10 Suggest moving stop on close to 0.3.
12/13 Suggest moving stop on close to 0.4.
12/14 Suggest moving stop on close to 1.0.
12/17 It was possible to cash in the second lot at 1.95. Suggest moving stop on close for the last lot to 1.2.
12/20 Suggest moving stop on close for the last lot to 1.3.
12/21 Suggest moving stop on close for the last lot to 1.4.
12/22 Out with the last lot at 1.2.
The trade above was only a "test trade" in December, demonstrating a more active way of spread trading. Under "Andy's Trading Aricles" below you can read more about this new idea.
Visit our Spread Website for more information about our daily newsletter, Traders Notebook.
Be sure to read through our free 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
© 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, you said you want to implement a new way of spread trading into Traders Notebook in January 2011. Can you say a few words about it?"
Simply speaking, the idea is keeping a tighter initial stop with less risk, and to use closer targets. You might call it a “Spread Swing Trading” approach, because I try to catch some smaller moves instead of going for the big ones. Here are the 3 major rules:
1) Closer Stops (less risk per spread contract): my idea is to cash in faster, as soon as we see some profit on the trade, but also to get out much faster whenever the trade goes against us. We will probably need only ½ of the current risk per spread contract, but at the same time we will probably get stopped out more often. The trade management will become more active.
2) I recommend trading 3 Lots; in case you can trade only 2 Lots because of your account size, just ignore the last Lot and go for target 1 and target 2. Target 1 will be about the same as the initial risk; target 2 will be between 2 and 3 times the initial risk; and for the last lot we will use a trailing stop.
3) I will be using a time stop of one week. For example, if we get into the trade on Monday, we will be out of the trade one week later in case the trade doesn’t develop (also Monday), no matter what.
I do not plan to trade all spreads the same way. Some will be traded the “old way”, while others will qualify for the new way of trading. You will find all the details regarding each single trade in 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
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HAPPY NEW YEAR TO ALL OUR STUDENTS, CLIENTS, AND LOYAL SUBSCRIBERS. IT WILL BE OUR PLEASURE TO SERVE YOU THROUGHOUT THE YEAR 2011! WE WISH YOU A PROFITABLE TRADING YEAR. |
New Years Wishes from Joe Ross
to all Spread Scan Subscribers
Dear Traders,
As we enter the year 2011, the staff of Trading Educators and I are taking this opportunity to wish you a wonderful and joyously happy New Year.
2011 promises to be an exciting year. Look for turbulent markets — more volatile in many respects than the markets of 2010.
It is our intention to keep you as up-to-date as possible through our newsletters, chats, forum, seminars, and private tutoring.
Sincerely yours,
Joe Ross
Trader, Author, Mentor
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
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!
DAY TRADING SEMINAR FOR E-MINI S&P, FOREX, AND STOCKS, LIVE ONLINE,
WITH MASTER TRADER
JOE ROSS
APRIL 2-3, 2011
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.
FOREX AT THE MARKET TRADES
On December 12th we told subscribers of our professional Forex swing-trading newsletter Forex at the Market, "Consider selling GBP/USD at 1.5800 limit. Suggested stop at 1.6110; suggested first target at 1.5520 (move stop-loss to breakeven when filled). Basis is an ongoing correction in a strong trend.”
Here's how we suggested managing this trade:
12/12 Short at 1.5800; suggested stop at 1.6110
12/15 Suggested stop at 1.5920
12/15 Suggest taking profits with 1/3 of the position at 1.5555; suggested stop now at 1.5825
12/17 Suggested stop now at 1.5660
12/20 Suggested stop now at 1.5585
Marco Mayer’s experienced recommendations tell you which Forex markets to consider trading, and when to trade them.
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
AMBUSH METHOD TRADE AND PERFORMANCE REPORT
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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... |
On the chart above are 4 different kinds of arrows:
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.
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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.. |
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.
If you wish to review Spread Scans from the past 3 months,
please follow any of the following links to its weekly issue:
October 2010 |
November 2010 |
December 2010 |
NEXT LIVE CHAT SESSIONS WITH JOE ROSS:
Wednesday, December 29, 2010
We
hope you will join us!
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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 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.
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.
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Traders Notebook™ is the premier daily spread and position trading newsletter, the only one of its kind, available to you as our loyal Chart Scan Subscriber. Choose your subscription term online to try it out!
Traders Notebook™ is definitely for YOU if you are:
> a Position Trader
> a Long-term Trader
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Traders Notebook™ lets you in on high probability futures position trades. These trades are hand-picked by Andy Jordan and Joe Ross. They are very carefully chosen for optimum results.
Traders Notebook™ also directs you to all the spreads you might want to trade. Subscribers have daily access to online help and advice. Spreads are chosen by Andy Jordan, our Trading Educators' professional spread trader. We believe Andy is one of the best spread traders in the world!
Follow this link for more details, and sign up for our PREMIER Spread & Position Trading Advisory Newsletter to increase YOUR success and make YOUR trading a more rewarding experience.
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
1-month "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 more consistent and profitable way. For further details regarding Andy Jordan’s Futures Spread Mentoring Program, please follow this link to our Spread Trading Website.
The best traders find ways of trading the markets that enable them to get in and out with the greatest probability of profits — repeatedly. That takes experience, usually years and years of it, watching and participating in the markets day in and day out — a very expensive education in more ways than one.
How would you like to be able to take advantage of repetitive events to the point of 80% or greater accuracy time after time after time? What would it be like to discover trades that trend, and continue to trend. You'll find out in Joe Ross' "Trading Spreads and Seasonals" manual. Follow this link to find out more...
How to activate the right mindset for Trading
Many of you know about the Life Index™ from Joe's bestselling book "Trading Is a Business". He uses the Life Index™ to chart his trading life, and it really changes his life for the better. Any or all aspects of his life that impact his trading can be charted. You can do it, too!
The Life Index for Traders (LIFT) enables you to immediately be able to chart in a pre-programmed Excel spreadsheet, creating YOUR own life index. It's fantastic!
The Life Index™ is a simple concept that, when applied diligently, will guide you into becoming a more successful trader as well as a more successful person. Joe Ross invented it many years ago to help himself build the right kind of character and to develop the right mindset for trading.
The "Life Index for Traders™" simplifies the process of tracking, charting, and evaluating your life, saving you valuable time. Plus we give you another important trade management tool, also a pre-programmed spreadsheet, as a special Bonus: Joe Ross' Equity Evaluator™. These are Joe's two favorite management tools, and he credits these two tools with his ability to master self-discipline as a trader. Joe really wants you to have them both – please follow this link to find out more.
"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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YOU NEED TO KNOW WHAT’S GOING ON
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