Edition 352 Wednesday, May 25, 2011
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Edition 352 Wednesday, May 25, 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 read through Joe Ross' free powerpoint presentation: Spread Trading - A Whole New Way to Trade. Weekly Spread Scan ExampleThis week we look at 100*SMZ1 - 600*BOZ1: long December 2011 Soybean Meal and short December 2011 Soybean Oil Today we consider an inter-market equity spread in the Soybean Complex: long December 2011 Soybean Meal and short December 2011 Soybean Oil (100*SMZ1 - 600*BOZ1). This spread has been trading in a well defined range between approx. +$400 and -$400 in the last month, and also in January/February (it was a bit lower during that time). The spread might be able to move higher due to seasonal factors during June. Because of the well-defined range, a trader might consider an entry at around -$400, or above $400 on a breakout to the upside, depending on the overall strategy. Please note: because of the different values of each unit move of the Soybean Meal and Soybean Oil, we have to multiply the buy side by 100 and the sell side by 600 to get the right equity chart. The spread is 1:1. |
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On May 12 we told subscribers of our professional daily spreads & position/swing trading newsletter, Traders Notebook, "Suggest entering an inter-market equity spread: long July Soybean Meal and short Soybean Oil (100*SMN1 - 600*BON1) at $950. Suggested risk is $500; initial projected objective is $500, then higher. Basis is a possible resistance around $900."
Here's how we suggested managing this trade:
05/13 In intra-day at approx. $950; suggested stop on close at $750.
05/17 It was possible to cash in the first lot at around $1,350, or even higher (see today`s e-mail). Suggested stop on close at $850.
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 read through Joe Ross' free powerpoint presentation: Spread Trading - A Whole New Way to Trade.
What are the ideal parameters for successful trading?
- Your trading goals and objectives must be achievable. They cannot be too abstract or too high. It's better to just execute a trade rather than being overly concerned with profits or achieving unrealistic performance standards.
- You must be able to concentrate intensely on what you are doing. While trading, it's vital that you have a detailed trading plan and control risk so that you can focus on monitoring the trade. Do not allow interruptions or anything else to cause you to lose focus.
- You must maintain control over any psychological conflicts you may have, as well as over the things that cause you stress. Nothing can be allowed to interfere with your concentration.
- Have clear goals and immediate feedback. A detailed trading plan helps you keep the goals clear. Similarly, the proper signals, specified beforehand, allow for immediate feedback.
- You must strive for deep and effortless involvement. Work on becoming so deeply involved in your trading that the everyday worries of life tend to be cast aside.
- Maintain a decisive sense of control over all of your actions.
- Become so focused on your trading that you are no longer self-conscious, eliminating self-doubt and self-reproach. Just focus on your trading.
- Be so intent that the time just seems to slip by. You want the hours to go by like minutes.
- To have the kind of focus and intensity that I've just described, plan on trading in very short intervals. You're a human being, not a machine. A period of 45 minutes of intense focus has been proven to work best for most traders.
© 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
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No one else offers as complete a spread trading program as you will 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.
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.
DAY TRADING SEMINAR FOR E-MINI S&P, FOREX, AND STOCKS, LIVE ONLINE,
WITH MASTER TRADER
JOE ROSS
October 8-9, 2011
Below is the feedback we received from attendees about the seminars from our most recent events:
“Joe’s approach and observations of the way the markets work was refreshing and straightforward. I was amazed how quickly I was able to adapt to Joe’s approach and how easily I could understand what Joe was teaching. The setups and the instructions on how to handle trades has taken much of the stress out of my trading.”
- Terry B., Australia --
Joe will give you the information you need to help you succeed beyond your wildest dreams. Joe shares with you the ultimate achievement: "What you learn at this trading seminar will enable you to not only day trade any market in any time frame, but also to position trade, swing trade, intermediate-term trade, or long-term trade any market, any time, anywhere in the world, as long as you have a source of data and a way to place orders."
You get a $500 discount if you register and pay your deposit before August 15, 2011. And you get an additional $100 off if you pay the full amount up front.
Learn from Master Trader Joe Ross — we know this online day trading seminar will forever change your understanding of the markets and be a life-changing experience for you.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." Follow this link to learn more about this online live seminar for Day Trading with Joe Ross.
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! |
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March 2011 |
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NEXT LIVE CHAT SESSIONS:
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NEXT EURO CHAT SESSION:
Wednesday, June 1, 2011
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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.
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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
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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
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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.
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TRADERS TRICK ENTRY
Of all the available setups, the Traders Trick Entry is the only one that gets better when more people use it. That may sound strange, but it's true.
Most trading setups are effective only when limited to a few traders, but the Traders Trick Entry is quite different. The reason is that the Traders Trick is designed to take advantage of the momentum of others — the more traders who use it, the more effective the trick becomes.
The Traders Trick Entry has now been in use for over 20 years, and with use, it gets better and better. It is a setup that is so consistent that many professional traders use it exclusively for their trade entries. The Traders Trick Entry (TTE) takes advantage of retracement, turnarounds, and pre-breakout momentum.
The TTE works in all markets and in all time frames. To be able to earn a profit, the primary prerequisite for the TTE is that there needs to be enough room between the point of entry and the targeted breakout.
Through 20 years of global experience by thousands of traders, TTE has been refined to the point that it is possible to earn a living using only that single setup.
The Traders Trick Entry is not a mechanical system ─ in fact it is not even a discretionary method. It is a setup, pure and simple. As a setup, it is one way to implement two of the three primary formations of the Law of Charts. Those formations are 1-2-3 highs and lows, and Ross Hooks.
The Traders’ Trick Entry (TTE) is one of the most profitable chart formations to trade. Profit is even greater when you can determine which TTEs are the most promising. Join Jim Augustine in his online Traders'Trick Entry seminar for this unique opportunity to learn the secrets of trading the Traders Trick.
“All of my webinars are interactive. The students participate in the webinar so that so real learning will take place. I have always disliked lectures. From my days as a corporate trainer, my students have always learned best when they participated. I bring that same philosophy to all my webinars. That‘s why I limit the attendance to a maximum of 4 participants. I truly want you to learn how to trade the TTE profitably. I want you to be successful!
I know that after you complete this webinar you will have a new and more profitable perspective on trading. Your self-confidence in your trading abilities will be unshakeable. You will know exactly what to do on every TTE you trade.”
- Jim Augustine
Follow this link and reserve your "Traders' Trick Entry" online class NOW!
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 and 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 for Traders™ and Equity Evaluator™
Joe Ross' Trading Classics: Must-have trading manuals for every trader's library:
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! It is a different kind of "insider trading" — it's 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? Follow this link to learn more about Trading Spreads and Seasonals.
Learn Spread Trading from Joe Ross from anywhere in the world. Joe's online Spread Trading Seminar allows you to participate at any time at your convenience.
The World's Only Complete Spread Trading Seminar.
Learn one of the most profitable and relaxed ways to trade!
Spread trading offers the most efficient use of your trading capital. Spread trading has more leverage than any other form of trading, while at the same time having less volatility than any other form of trading.
Do you know why spread trading is hardly mentioned in any books, websites, exchanges, or by your broker? You need to find out why! You will be amazed.
Click here to learn more about this Spread Trading Video Seminar
Visit Joe Ross' Online Blog "Trading for a Living"
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