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 TYM1 - USM1: long June 2011 10 Yr T-Notes and short June 2011 30 Yr T-Bonds Today we consider an interest rates spread: long June 2011 10 Yr T-Notes and short June 2011 30 Yr T-Bonds (TYM1 - USM1). After being in a nice up-trend from September 2010 until February 2011, the spread has retraced from its February high at 1^01 and is currently testing the level of approx. -1^11 for the third time. As long as this level holds, seasonality (02/08 – 04/15) might help to move the spread higher once again.

Previous Trades

On February 23 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Suggest buying the April Mini Natural Gas market if it trades at or above 3.94 at 1:30 PM CT. Suggested initial stop after the entry is 3.74 (approx. $600 - $700 for the mini contract). Basis is a 1-2-3 low. Traders with smaller accounts might want to trade the ETF with the symbol UNG."

Here's how we suggested managing this trade:

03/15 In at approx. 3.94; suggested stop on close at 3.74 (long the UNG at approx. 10.52; suggested stop on close at 10.0).

03/17 It was possible to cash in the first lot at approx. 4.08 (see email); suggested stop now at b/e (out of the first lot of UNG at approx. 10.85; suggested stop at b/e). Suggested second target at 4.40 (approx. 11.80 on UNG).

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 give in to the death wish

The death wish is resignation, fatalism, dejection, despair — in the face of "luck" repeatedly turning against us. The death wish is admitting defeat and shrugging our shoulders and throwing up our hands (generally after a string of losses) and not caring from then on whether we win or lose. The death wish is throwing money into the pot fatalistically, to punish ourselves. It is saying, “I might as well keep throwing my money away at this point, because it doesn't matter any more.”

The problem with the death wish is that it removes the brain's analytical, decision-making function from the equation. It also tends to magnify disasters. It takes a bad situation and kicks it up to the next level. It also misses opportunities, because its attention is so focused on the great sadness of its plight.

It may even miss the turn-around point — when things start changing and going the other way and getting better — so intent is it on making an airtight case concerning the sadness of its plight.

Try not to give in to the death wish. If a disaster starts to unfold, try as much as possible to keep it under control, not exaggerate it further. Try to salvage something from the trade. Scale back your involvement, or simply get out of the trade. Go for a walk. Go watch something on TV. Go do anything that helps clear your mind.

The "Life Index for Traders™" tool simplifies the process of tracking, charting, and evaluating your trading and other aspects of your life, saving you valuable time. The "Life Index for Traders" (LIFT) gives you a pre-programmed spreadsheet that enables you to immediately be able to start charting and using YOUR own life index. It's fantastic!

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

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. 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.

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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.
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