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 SQ1 - SX1: long August 2011 Soybeans and short November 2011 Soybean Today we consider a Soybean calendar spread: long August 2011 Soybeans and short November 2011 Soybean (SQ1 - SX1). This spread moved down strongly in January and February, after trading mainly sideways at the end of 2010. In terms of seasonality, this spread usually turns to the upside during February, and continues its up-move until end of March. The current 1-2-3 low might be used as an entry signal, with an initial stop below the February low at approx. 29. Depending on the entry level, the spread will need a risk of about $400 - $500 per spread contract.

Previous Trades

On February 9 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering an inter-market equity spread in the metals: long April Gold and short April Platinum at a close above $44,100. Suggested risk is $3,000; initial projected objective is $3,000, then higher. Basis is correlation and a 1-2-3 low. Comment: This is a very expensive spread and unfortunately there is no mini contract for platinum."

Here's how we suggested managing this trade:

02/10 In at approx. $44,650; suggested stop on close at $41,700.

02/15 Stop on close now at $44,000.

02/16 It was possible to cash in the first lot at $46,150. Suggested stop on close at b/e.

02/18 Suggested stop on close at $45,500. Suggest watching this spread also intra-day and getting out if it reaches b/e.

02/22 It was possible to cash in the second lot at approx. $50,500. Suggested stop on close now at $48,400.

02/25 Suggested stop on close now at $50,400.

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

Don't steam!

“Steaming”, in poker parlance, is what happens when your queen's-up full house loses to a king's-up full house, or when your four kings lose to four aces. The term undoubtedly comes from the fact that steam begins to come out of your ears as you watch a pile of chips and money slide across the table to another player.

Because poker and trading have much in common, steaming can also happen to you in trading. Just imagine the last trade that moved perfectly into your direction right after your entry. Everything looked just fine, and you thought you would make some nice profit with this trade. But suddenly the market moved against you overnight on some bad news, and the perfect winning trade turned out to be a loser. Does this sound familiar? I'd bet it does.

But what can you do in such a situation? If possible, don't steam, which of course is easier said then done. But while the pain may be real, steaming is counterproductive. Everyone who has traded for some time recognizes that these trades are going to occur. Become annoyed. Become angry, if you must. Then forget about them. Wipe the slate clean. Resist the urge to give these occurrences a lot of emotional weight. Develop the ability to quickly reset yourself back to your normal trading, and reset your passions back to zero. The ability to go from anger and outrage to completely neutral in a very short time is a valuable skill in trading.

Use the time usually devoted to steaming to go back over the last trade in your mind to see if you missed anything. Could you have managed your trade differently? Did you put some extra money on the table that you might have saved? There is always something to be analyzed. Do it neutrally. Turn steam into analysis. Recognize that these things happen, and will balance out if you keep your balance!

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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.

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
one month long "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 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

Marco Mayer’s experienced recommendations tell you which Forex markets to consider trading, and when to trade them.

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

A WEALTH OF FREE SPREAD TRADING INFORMATION & EDUCATION:

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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.

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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.

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