Edition 334 Wednesday, January 19, 2011
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Edition 334 Wednesday, January 19, 2011 |
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Commentary by Andy Jordan
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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. Weekly Spread Scan ExampleThis week we look at 625*BPH1 – 1,250*EUH1: long March 2011 British Pound and short March 2011 Euro FX Today we consider an inter-market equity spread in the currencies: long March 2011 British Pound and short March 2011 Euro FX (625*BPH1 – 1,250*EUH1). After moving up nicely in November, the spread traded mainly sideways in December of last year. During the first week in 2011 the spread moved up almost $6k in only 5 days. demonstrating its high volatility. The spread has retraced about 50% of its last up move since then. Traders with large accounts might want to jump into this trade on the next sign of strength, using a close stop. Traders with smaller accounts might want to look into the mini contracts or into ETF’s. Please note: because of the different values of each unit move of the British Pound and the Euro FX, we have to multiply the buy side by 625 and the sell side by 1,250 to get the right equity chart. The spread is 1:1. |
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On January 5 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a Lean Hogs calendar spread: long June and short April Lean Hogs at 10.10 limit. Suggested risk is $500; initial projected objective is $500, then higher. Basis is seasonal (1/5 – 2/3) and a new high. Comment: this trade is based on seasonal statistics (15 winners in the last 15 years with a max. draw down of -$548 in 1999). Time stop is 01/13."
Here's how we suggested managing this trade:
01/06 In at 10.10 or even better. Suggested stop on close (same day) at 9.10.
01/12 Suggest exiting at the close (MOC) – Time Stop.
01/13 Out at approx. 9.50 or even better.
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, what kind of records should I be keeping to help me become a better trader?"
It's extremely important for all traders to keep accurate records of all factors that may impact the outcome of our trades so that we can learn from our losses, improve our performance, and do better next time. From a psychological viewpoint, by documenting actions, thoughts and emotions associated with both wins and losses, we will come to see what works and what doesn’t. When it comes to losses, it is crucial to note such things as whether we were in a bad mood, or acting on impulse rather than being calm and relaxed. Other factors, such as market conditions, trading strategy, preparation for the trade (such as back testing), or risk management strategy should also be included in our records.
Once we have this knowledge about our trading, we can study a series of losing trades to identify the factors that led to the trades' "going wrong."
We can then change what we were doing wrong in subsequent trades, and notice how we improve. The key is to take an upbeat psychological approach. Rather than dwelling on our failures, it's more useful to view past mistakes as opportunities for growth and improvement. Viewing a loss as a growth experience changes our perspective immediately. We will now focus on what we can do to achieve the greater goal of becoming a successful trader, rather than being preoccupied over the loss from a few of the many trades we will make during our career.
© 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
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: EUR/NZD:
On January 6th we told subscribers of our professional Forex swing-trading newsletter Forex at the Market, "Consider selling EUR/NZD at 1.7245 stop-market. Suggested stop at 1.7410; suggested first target at 1.7105. Basis is a possible strong move in the direction of the trend.”
Here's how we suggested managing this trade:
01/06 Short at 1.7245; suggested stop at 1.7410
01/07 First target hit at 1.7105; suggested stop at 1.7210
01/09 Suggested stop at 1.7085; suggested second target at 1.6810
01/10 Trade is still open.
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
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 two of the most popular markets out there, the British Pound (GBP/USD) spot forex market and the E-Mini Nasdaq 100. Of course the first trade could also have been taken in the British Pound future contract traded at the CME. Let’s have a look at the Pound during December. As you can see, the GBP/USD moved up very slowly in a “stair stepping style” in early December. Then we got a strong move down that happened in one day. If you missed that move, you pretty much missed the action for December. The pair just moved around between 1.5700 and 1.5300 for the rest of December. Let’s see how Ambush performed during that mess... |
On the chart above are 4 different kinds of arrows:
Please take a look at the results of those trades
(without commissions)
trading one 100k standard lot of GBP/USD
in the Forex spot market:
As you can see, Ambush managed to
make a total of $4.860 profits trading one 100k lot
in the spot Forex market.
Now for a look at the E-Mini Nasdaq 100 (NQ). Let’s face it, December was tough for many traders focused on the NQ and other stock market futures. It was a terrible sideways/stair-stepping market with tons of “false breakouts,” and on most days almost nothing happened. The whole chart is full of Dojis and trading days where the market closed close to where it opened. And if you missed the two days in which the market actually moved, you probably had a hard time making any profits at all. How do you trade successfully in such a mess? Well, let’s see how Ambush did...
On the chart above are 4 different kinds of arrows:
Please take a look at the results of those trades
(without commissions) trading one
E-Mini Nasdaq 100 contract:
As you can see, Ambush managed to make
a total of $1.325 profits trading just 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.. |
If you wish to review Spread Scans from the past 3 months,
please follow any of the following links to its weekly issue:
November 2010 |
December 2010 |
January 2011 |
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NEXT LIVE CHAT SESSIONS WITH JOE ROSS:
Wednesday, January 19, 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 19, 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 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! It 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? Follow this link to find out more about Trading Spreads and Seasonals.
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 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.
Real trades - real money. Get detailed trading instructions - every day!
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More Spread & Position Trade Opportunities - too good to pass up
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
> a beginning Spread Trader, just starting out in learning to trade spreads
> an experienced Spread Trader who wants to take advantage of all the features and benefits that Traders Notebook™ offers daily, such as directing you to spreads you might want to trade
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.
"Traders Notebook is a great starting place to learn how to trade real spreads. You learn a lot from just watching the trades selected, basis of selection, and most importantly the management of these trades. Thereafter you can select and trade the spreads that you feel comfortable with! The trading tidbits also provides one with a wholesome approach to trading. Thanks Andy Jordan, for all the good work."
-- Alpha A., Tanzania
"For myself, Andy Jordan is doing a great job! I got (and still get) much more experience in a shorter time frame."
-- Roland H., Germany
The truth is simple: the charts of the markets follow a law. Professional Trader Joe Ross calls that law:
The Law of
Charts™
Joe's trading students have told him that once they understood the markets, all they ever needed to trade them profitably is an understanding of the Law of Charts™ along with the dynamics of the market.
Joe's Online Video gives you a presentation of the Law of Charts formations, followed by a very detailed explanation of how to use the Law of Charts to make profits in the markets.
We know you and your trading will benefit greatly from the Law of Charts.
The Law of Charts Online Video Seminar takes you deeper, and explores the astonishing reality of the Law of Charts in the markets. The Video Seminar brings you the pure simplicity of what the markets are all about. Trading does not have to be complicated. Everything you need to know to make money in the markets is right there before you when you look at a price chart. Follow this link to the Trading Educators website for more detailed information about Joe's online video seminar.
TO SUCCEED IN THIS CURRENT ECONOMIC ENVIRONMENT,
YOU NEED TO KNOW WHAT’S GOING ON
World Market News is a digest of global news reports that we feel are vitally important to your trading and investing.
Because we live in a global economy, we need to know what’s happening around the world. What happens in China affects what happens in Europe and all the Americas. World Market News brings you vital information about currencies, precious metals, energy, agriculture, and interest rates from every corner of the Earth.
THERE’S SO MUCH WORLD NEWS THAT NO ONE PERSON
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