Edition 332 Wednesday, January 5, 2011
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Edition 332 Wednesday, January 5, 2011 |
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Commentary by Andy Jordan
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Before I start my weekly spread scan commentary, I want to thank all those of you who helped us by sharing your thoughts about our weekly Spread Trading Newsletter through filling out the brief survey we offered last week. If you haven't yet filled out the survey, please visit this link to the short feedback form. I would really appreciate everyone's input on this free spread trading newsletter.
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On December 2 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a Heating Oil calendar spread: long March and short January Heating Oil on strength (on a close above 0.93) MOC. Suggested risk per spread contract is $170; initial projected objective is $170, then higher. Basis is seasonal (11/17 – 12/9). Comment: This trade might be worth another try with a very close stop because it has stopped its down move around 1.00 several times. This is only a test trade regarding our new rules (see Spread Scan Vol. 331)."
Here's how we suggested managing this trade:
12/03 In at approx. 1.05; suggested stop on close at 0.80; suggested first target at 1.45.
12/08 Spread was filled at the first target this morning. Suggest moving stop on close to b/e. Spread was filled on the second target (see today's e-mail) at 1.85.
12/08 Out with the last lot at 2.45 (see today's e-mail).
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, How much profit or loss can I expect from trading?"
Answering this question is difficult because it depends on many factors, such as the experience of the trader, the way of trading, and, very importantly, how much the trader wants to risk.
Profits and risk go hand in hand, and every trader gets a losing streak once in a while. If you want to succeed in the trading business, you have to take losing trades into account. You will lose money; sometimes even more than you thought! To be prepared for such an event, you have to make the overall decision: “How much money of my trading account am I able to lose?” This is a difficult decision I know, but it is extremely important for every trader to know the answer to that question. Unfortunately, without knowing your trading goals, your account size, and your risk tolerance, it is difficult for me to come up with any solid numbers.
But here is a tiny calculation you can do: multiply the risk you are willing to take on each trade by 6, and you get a good estimation of your overall risk.
For example: if you are willing to risk 4% on each trade, you should be prepared for a drawdown of 24% (4 * 6 = 24).
Because profits and risk go hand in hand, the question that will arise is: “how much profit can I expect?”
Answer: If you are able to make profits of the same amount as your worst drawdown, you are already a good trader; if you can make double that, you are excellent.
Always keep in mind that trading is a long term business; your time frame should be at least 6 months, or better yet, one year. Short term results, either profits or losses, are meaningless in this business!
All the calculations above are just a rough estimation, but I hope you now have a better idea about trading results and what to expect.
© 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,
The staff of Trading Educators and I wish you a wonderful and joyously happy New Year 2011.
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 current markets, how to apply the Law of Charts™.
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
TRADE: AUD/CAD
On December 15th we told subscribers of our professional Forex swing-trading newsletter Forex at the Market, "Consider buying AUD/CAD at 0.9980 limit. Suggested stop at 0.9850; suggested first target at 1.0100 (move stop-loss to breakeven when filled). Basis is an ongoing correction in a strong trend.”
Here's how we suggested managing this trade:
12/15 Long at 0.9980; suggested stop at 0.9850
12/19 Suggested stop now at 0.9920; suggested first target now at 1.0075
12/20 First target hit at 1.0075; suggested stop now at 1.0015; suggested second target at 1.0190
12/21 Suggested stop now at 1.0110
12/22 Stopped out at 1.0110
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
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, January 5, 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, January 5, 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.
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.
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.
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, advanced, or anywhere in between.
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.
Joe Ross' Trading Classics — Must-have trading manuals for every trader's library:
Trading Is a Business - Make Money Trading!
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.
Trading the Ross Hook: a chart pattern that yields consistent profits
You learn exactly what Ross hooks are. You see their origins and what causes them to occur. You see step-by-step how to identify them, 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.
Trading Spreads and Seasonals — Discover one of the best kept trading secrets
Spread Trading is like "insider trading." Why? Because that's what traders in-the-know do! What I'm talking about is a different kind of "insider trading" — trading based on the knowledge, experience, and expertise of successful traders who know the inside story of how markets work. Spread Trading completely eliminates stop running. Do you think the insiders want you to know that? What would they do if they didn't have your stops to run?
Trading by the Book – Essential for your futures trading education
This was the first trading manual Joe Ross wrote. It contains 376 pages of explicit information about commodity futures trading. Included are discussions of how to recognize congestion, how to set and trail stops, how to get in step with a market, how to select trades, and how to conduct your trading as a business. It is in this book that master trader Joe Ross first revealed his trading envelope. He reveals exactly how to define a trading range, as well as how to trade the breakout of a trading range, and so much more.
FUTURES TRADING COURSE: "FROM THE BEGINNING"
An essential ingredient for a profitable trading life! Joe's Futures Beginners E-book Course - instant online download! Find your way through the vast labyrinth of Trading Knowledge - get the essential facts.
Whether you've been trading for years or are just a beginner, there is much basic detailed information about this business that most traders do not know, and are unaware that they need to know.
The course gives you facts you need for making important decisions. Click here to learn more about it on our website.
The Life Index and the Equity Evaluator - two important tools for Traders
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 start charting in a pre-programmed Excel spreadsheet to create YOUR own life index. It's fantastic!
The Life Index™ is a simple concept that, when applied diligently, guides 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 in 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.
PERFECT FOR ALL TRADERS WHO WANT TO MAKE MONEY
TRADING THE E-MINI S&P 500
If you are looking for a way to get paid to trade the E-mini S&P 500, then look NO FURTHER.
It's right here! Joe Ross shows you how he day trades the E-mini S&P 500 using a 5-minute and a 1-minute chart.
Joe's new E-Mini S&P 500 E-Book is loaded with trading examples. In addition,
he shows you how to handle business, risk, money, and trade management for
this market. And there is more - follow this link to find out.
DAY TRADE FOREX AND WIN! Master Trader Joe Ross shows you
how he does it!
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 has seen, he decided that he will teach you how he day trades the currency pairs. For this purpose,
Joe Ross wrote an e-book titled “Day Trading Forex.” Here is what he has to say about it:
Did you know that so-called “free data” is a myth with most forex brokers? It’s true, and I explain that to you. I also show you that forex trading is not without heavy overhead in the form of the spread you pay to trade.
I show you the trips and traps of forex day trading. You need to know these in order to avoid the fate of so many other traders.
If you want safety in your trading, I show you where to find it. I tell you about where the greatest forex profits are made. Follow this link to find out more.
Visit Joe Ross' Online Blog "Trading for a Living"
Trading Educators on FACEBOOK - Become a FAN of Trading Educators
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