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 RBK1 - RBU1: long May 2011 RBOB Gasoline and short September 2011 RBOB Gasoline Today we consider a RBOB Gasoline calendar spread: long May 2011 RBOB Gasoline and short September 2011 RBOB Gasoline (RBK1 - RBU1). After being in a downtrend for about a month, the spread reached its November levels at approx. 1.0. It then turned around and moved sharply higher in the last couple of days. Is showing strength for 2 days enough evidence to jump on board with this seasonal spread (02/23 - 03/25), or do we need to wait a few more days until we see some kind of confirmation (a 1-2-3 low, for instance)? I personally tend to give it a few more days, even if I might miss the entry into this spread trade. If you plan to take this trade, be careful on the entries and exits because this spread is not very liquid, and you might get some slippage.

Previous Trades

On February 16 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering an inter-market spread in the energies: long April RBOB Gasoline and short Heating Oil at a close above -8,21. Suggested risk is $1,260; initial projected objective is $1,260, then higher. Basis is seasonal (2/9 – 3/26) and a 1-2-3 low. Comment: Be careful on the entry/exit because RBOB is not very liquid. You might want to work closely with your broker."

Here's how we suggested managing this trade:

02/17 In at approx. -7.50. Suggested stop at -10.00.

02/18 It was possible to cash in the first lot (½) at approx. -6.00 or even better. Suggested stop (even intra-day if this is possible for you; if not MOC) at -7.30. Comment: after watching the volatility of this spread (it moved almost $1,200 from 02/16 to 02/17) in the last few days, I preferred to play it safely by cashing in the first lot as soon as possible.

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

Be careful to avoid overconfidence

After a good-sized win or series of wins, you may get a feeling of invincibility with regards to your trading prowess. This could last for a period of time; an invincibility that quickly dismisses from mind the prior long cold spells suffered through, what a struggle it was at the time, how much toil, trouble, and, yes, even luck, that it took.

A state of great ease and relaxation can envelop us. If you won $5,000, for instance, you might feel like, “Heck, now I can lose $1,000 or $2,000, and still be up $3,000.” This feeling of fatness could be self-fulfilling. Of course you are too smart to fall into this trap; you would see it coming.

Unless you take this warning seriously, you might very well lose that money back — at least a serious chunk of it. How am I able to say that with such certainty? Because overconfidence makes one careless. If you do not pay attention to the details and self-control that helped you win in the first place, the likelihood of continuing to be successful rapidly diminishes.

One thing is true in trading: when things are going so well that it is hard to believe what is happening, don't change the disciplines and behavior that are working for you!

SOCIAL NETWORKING WITH ANDY JORDAN

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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 profitable and consistent way. For further details regarding Andy Jordan’s Futures Spread Mentoring Program, please follow this link to our Spread Trading Website.

FOREX AT THE MARKET TRADES

On February 10th we told subscribers of our professional Forex swing-trading newsletter Forex at the Market, "Consider selling USD/CHF at 0.9730 limit. Suggested stop at 0.9802 (BID); suggested first target at 0.9666. Basis is a possible sell-zone around 0.9730.”

Here's how we suggested managing this trade:
02/11 Short at 0.9730; suggested stop at 0.9802
02/14 Suggested stop at 0.9755
02/15 First target hit at 0.9666; suggested stop at 0.9733
02/16 Stopped out at 0.9733

On February 2nd we told subscribers of our professional Forex swing-trading newsletter Forex at the Market, "Consider buying GBP/CAD at 1.5880 limit. Suggested stop at 1.5770 (ASK); suggested first target at 1.5996. Basis is a possible buy-zone around 1.5880.”

Here's how we suggested managing this trade:
02/04 Long at 1.5880; suggested stop at 1.5770
02/07 First target hit at 1.5996; suggested stop at 1.5885
02/08 Stopped out at 1.5885

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.
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Best wishes for success in your currency trading,

Your Editor of FX-ATM

MARCO MAYER
http://www.fx-atm.com

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The Life Index for Traders 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.

 

If you ORDER THE LIFE INDEX FOR TRADERS™ we give you our EQUITY EVALUATOR™ free!!

We want to 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.

 

The Equity Evaluator™ lets you see exactly how well you are doing in the markets. But it does even more than that. The Equity Evaluator tells you when you need to stop trading long enough to take a serious look at your Life Index. It tells you when you need to paper trade, and it tells you when it's okay to trade with real money.   The Life Index for Traders (LIFT) and the Equity Evaluator™ work hand-in-hand to ensure your trading success. Follow this link to find out more.

A WEALTH OF FREE SPREAD TRADING INFORMATION & EDUCATION:

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Wednesday, February 23, 2011

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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.

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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 2011. 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.

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