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.

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 Example This week we look at 100*GCJ1 - 50*PLJ1: long April 2011 Gold and short April 2011 Platinum Today we consider an inter-market equity spread in the metals: long April 2011 Gold and short April 2011 Platinum (100*GCJ1 - 50*PLJ1). After a strong down move in January the spread traded sideways for about 3 weeks in a well defined range. Last Thursday the spread could finally make it higher and broke out of its range giving us a possible entry signal. Traders not in this correlation spread might use a break out of the current Ross Hook as a possible entry signal. Unfortunately, there is no mini contract for Platinum and therefore this spread is quite expensive regarding risk which I would calculate between $2,000 and $3,000 per spread contract. Please note: because of the different values of each unit move of the Gold and the Platinum, we have to multiply the buy side by 100 and the sell side by 50 to get the right equity chart. The spread is 1:1.

Previous Trades

On February 9 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering an inter-market currency spread: long March Canadian $ and short Japanese Yen on a close above -$50,400. Suggested risk is $3,000; initial projected objective is $3,000, then higher. Basis is seasonal (2/4 – 4/12) and a break out of a channel. Comment: If this trade is too expensive using the Futures contracts you might initiate this spread using the Forex."

Here's how we suggested managing this trade:

02/10 In at approx. $-49,800. Suggested stop on close at -$51,500 (I am not willing to risk the complete $3,000).

02/11 It was possible cashing in the first lot at approx. -$49,200 (see today's email); suggested stop on close now at b/e.

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.

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

Why traders fail

Traders fail for many reasons. I will name a few an concentrate on one. For the most part traders are in a hurry, so they end up poorly educated. They have no idea of what’s really going on. They think they can do it all themselves and so they fail to find a mentor who can take them directly to what they need to know and eliminate what they don’t need to know. Traders fail because they lack discipline and self-control, i.e., control over their human nature.

Traders fail because they have the wrong goal, which is money. This is the one I want to concentrate on. Money and profits are not the goal of trading. They are the result of having the correct goal. The correct goal is in two parts:

1. Find your setup or setups, the ones that you can own, possess; the ones that are yours, and have your name on them.

2. Develop and follow a plan, your plan, one you understand and can execute based on the setup or setups you have discovered.

Joe Ross´ Free Weekly Chart Scan Newsletter

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

The Law of Charts Flash Cards

2-HOUR ONLINE CLASS LIVE WITH
JIM AUGUSTINE

In this interactive webinar, Jim will guide and YOU will identify all the Law of Charts formations. It is designed for you to learn to be able to instantly spot 123s, ledges, congestion, and Ross Hooks. The methodology is modeled after mathematic's flash cards.

Charts will be presented from which you will identify the various Law of Charts formations, strengthening your ability to quickly recognize what you are seeing. We take only 4 participants for each Law of Charts Flash Card online class. The classes fill fast. To ensure a Flash Card session for yourself, please follow this link and sign up now to lock in your reservation for the next available classes.

THERE ARE IMPORTANT DEVELOPMENTS
TAKING PLACE IN THE MARKETS!

We want our Spread Scan subscribers to know the importance of Joe's upcoming 2-day Day Trading Online Seminar, April 2-3, 2011. Follow this link to our website to register NOW!

Major changes are taking place in the markets! Joe says, "Anyone who is not current on what's going on needs to be re-trained in how to trade in today's markets."

Instead of the cost and hassle of your having to travel to this seminar, Joe Ross will be giving the material online, live, using the facilities available to us via the Internet. There will be 2-way communication, so you can ask your specific questions at appropriate times.

Joe is truly looking forward to meeting with you on April 2-3, 2011. We know you won't want to miss what he will be showing you in April. We call the seminar "Day Trading." No matter which markets you trade, and no matter which time frames you use, what you learn at the seminar will apply to stocks, futures, or forex. One of our top students, now a successful professional trader, uses what he learned at the seminar to trade options.

Don't miss out! Follow this link to find out more, and register today. If you previously attended the seminar, or if you had private tutoring with Joe Ross, you may need a refresher to be aware of current changes in the markets. Please e-mail us at seminar@tradingeducators.com for special arrangements.

"The seminar was a real eye opener. Techniques shown can be put immediately to use. No BS approach." -- John Gaspar, Canada

"As usual, Joe's teachings are great. He teaches without all of the indicators which tend to only confuse the issue. Just use what you see on the charts. If you can do just that you will be many dollars ahead. I know this is hard to do but trust me, it works."
-- Richard Frech, USA (TX)

"In short, profitable information and profound wisdom imparted with great humor. I especially liked the five set ups and the use of the ATR to determine where to place the stop, what your objective should be, which markets to trade, etc. If I can effectively implement what Joe presented I should become a consistently profitable trader." -- Thomas Cline, USA

"This was by far the best and most informative trading seminar I have ever taken. I never understood the reasoning behind what motivates the bigger traders in the market and how we are affected until now. It also taught me proper trade and money management which I was never exposed to in the past. Now I know why making money in the markets was so difficult but now I know I am fully equipped to approach the markets correctly. Well done. Thank you so very much Joe."
-- Joseph R., USA

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

April 2-3, 2011

Joe says: "You owe it to yourself to learn what I will teach. 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.

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.

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, February 2, 2011

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, February, 20101

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...

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Copyright 2010. Published by Trading Educators, Inc.
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