Edition 346 Wednesday, April 13, 2011
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Edition 346 Wednesday, April 13, 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 LHM1 - LCM1: long June 2011 Lean Hogs and short June 2011 Live Cattle (Globex) Today we consider an inter-market spread in the meats: long June 2011 Lean Hogs and short June 2011 Live Cattle (LHM1 - LCM1). After moving up nicely at the beginning of 2011, the spread traded down strongly in February and in the first two weeks of March. It then moved back up over $3,400 in only 4 days, reaching -12.00 on March 18. In the last 3 weeks it has declined from the March high, but stopped its down move once again at about -18.00. Seasonality (blue line) shows a strong up move for the next 2 weeks, and the current 1-2-3 low might be used as an entry signal. As long as the April low holds, the spread might be able to reach its March high once again, or even the February high. |
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On April 3 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a Natural Gas calendar spread: long December and short June Natural Gas at 0.57 limit. Suggested risk is $500; initial projected objective is $500, then higher. Basis is seasonal and a 1-2-3 low. Comment: The December NG is not very liquid; that's why I am recommending an entry via limit order."
Here's how we suggested managing this trade:
04/04 Unfortunately, only a few traders got into this spread overnight (and only with partial fills). I will keep this spread in TN but it will not count it in the statistics. It was possible to cash in the first lot at 0.60 or even a bit better (see email). Suggested stop on close now at b/e.
04/06 Suggested stop on close at 0.580.
04/07 Suggest cashing in the second lot at 0.670 and keep the last lot using a trailing stop. Suggested stop on close at 0.610.
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.
What's my real reason for trading? - Part Two
Last week we talked about the real reasons for trading and what our hidden goals are. I've received a couple of emails asking me if I can name a few of these hidden goals.
There are numerous motives, but here are just a few to help you get the idea:
- There are those with a deep-rooted belief that things always go wrong and good things never happen to them. They have a wish to confirm this fact to themselves (trading works wonderful for this).
- There is the individual who feels deeply insecure and is looking for something to raise his self-esteem and self-worth.
- There is the trader who believes in creating memorable, flourishing triumphs to be remembered by everyone.
- There is the person who uses trading in the same way people use punching bags – to get rid of the day's frustration. And there is the person who uses himself as a punching bag, employing trading to do the damage.
- There are those who are simply hooked on the adrenaline of the action.
It ought to be stressed that none of these hidden motives are illegal, evil, or bad. They may be exactly what someone wants out of trading. But the problem is, not very many of these motives have any relation to the task at hand ─ trading with the discipline necessary to win consistently.
© 2011 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
AMBUSH METHOD TRADE AND PERFORMANCE REPORT
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This month, we’d like to show you how Ambush performed in two popular markets ─ one of the most traded ETFs, the SPY S&P 500 ETF (also known as the Spiders), and the Forex market AUD/NZD. So let’s have a look at the SPY ETF during March. As we all know, some very unusual events were going on in March causing high volatility in many markets. As you can see the SPY was no exception, as there were many gaps and wild moves in both directions. Tough to trade, right? Let’s see how Ambush handled the situation! |
On the chart above there are 4 different kinds of arrows:
Please take a look at the results of those trades (without commissions), trading 1000 shares of SPY:
As you can see, the Ambush Method managed to make a total of $8.090 in profits trading just 1000 shares.
Now let’s have a look at the AUD/NZD Forex market. What a mess, nothing but sideways market action with tight trading ranges, false breakouts, and many reversals. How do you trade successfully in such a market? Well let’s see how Ambush did:
On the chart above there are 4 different kinds of arrows:
Please take a look at the results of those trades
(without commissions), trading one 100k lot of AUD/NZD:
As you can see, Ambush Method managed to make a total of $3.412 in profits trading just one 100k lot.
Now that you have a taste of what the Ambush Trading Method™ is all about, we hope you will make this incredibly effective method part of your trading today. With this trading method you can ambush many stock index futures, commodity futures, currency futures, forex pairs, ETFs. or CFDs in 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. Click here to learn more about the Ambush Trading Method™. |
SOCIAL NETWORKING WITH ANDY JORDAN
The free Chart Scan weekly newsletter is designed to assist you in becoming a better trader by showing you, in the context of the markets, how to apply the Law of Charts™ in today's markets. 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 for Chart Scan today! |
If you wish to review Spread Scans from the past 3 months,
please follow any of the following links to its weekly issue:
February 2011 |
March 2011 |
April 2011 |
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NEXT LIVE CHAT SESSIONS:
Wednesday, April 13, 2011
We
hope you will join us!
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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:
Wednesday, April 13, 2011
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 trading 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 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.
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.
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Connect with Joe Ross &
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AMBUSH METHOD
TRADING
PERFORMANCE
This month, we’d like to show you how Ambush performed in two popular markets, one of the most traded ETFs, the SPY S&P 500 ETF, also known as the Spiders and the Forex market AUD/NZD.
Please either click here or scroll down in this Chart Scan edition to find out more about these Ambush Method trades.
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 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 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! What I'm talking about 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?
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 this Future's Trading Course.
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 learn more about The Life Index™ andJoe Ross' Equity Evaluator™.
DAY TRADE FOREX AND WIN! Master Trader Joe Ross shows you
how he does it!
Trading forex is heavily marketed and popular, but it is also deadly. The e-mails and letters we receive attest to the fact that most people who attempt to day trade forex are losing their money. The turnover rate is atrocious. Because of the pain Joe has seen, he decided that he will teach you how he day trades the currency pairs. For this purpose,
Joe Ross wrote an e-book titled “Day Trading Forex.” Here is what he has to say about it:
Did you know that so-called “free data” is a myth with most forex brokers? It’s true, and I explain that to you. I also show you that forex trading is not without heavy overhead in the form of the spread you pay to trade.
I show you the trips and traps of forex day trading. You need to know these in order to avoid the fate of so many other traders.
If you want safety in your trading, I show you where to find it. I tell you about where the greatest forex profits are made. Follow this link to learn more about Day Trading Forex.
Visit Joe Ross' Online Blog "Trading for a Living"
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