Edition 353 Wednesday, June 1, 2011
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Edition 353 Wednesday, June 1, 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 CK2 - CU1: long May 2012 Corn and short Sept 2011 Corn Today we consider a Corn calendar spread: long May 2012 Corn and short Sept 2011 Corn (CK2 - CU1). This spread has been trading up and down with high volatility for the last two months, but seems to be slowing down at the moment. After falling like a rock during the first week of April, the spread climbed back up, almost reaching break-even on May 12. Then, once again, it fell over $1,500 in only six days! During the last 15 years, the spread has shown a reliable seasonal pattern starting in June and ending in August. Will seasonality help to move the spread higher this year? Because of the high volatility, a trader might use a risk of about $500 per spread contract. Because the bid/ask is rather wide on this spread, a trader might want to use a limit order on the entry and exit. |
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On May 17 we told subscribers of our professional daily spreads & position/swing trading newsletter, Traders Notebook, "Consider entering a currency spread: long June British Pound and short Japanese Yen at a close above -$52.300. Suggested risk is $2,000; initial projected objective is $2,000, then higher. Basis is seasonal (5/23 – 7/6) and a (not perfect) 1-2-3 low. Comment: This is another expensive currency spread. Traders with smaller accounts might want to trade the ETF spread 1*FXB - 2*FXY (ratio 1:2) instead, but use the futures spread for the entry/exit. I will monitor this spread for an inter-day entry."
Here's how we suggested managing this trade:
05/17 In at approx. -$51,950; suggested stop on close at $53,600.
05/23 Suggest cashing in the first lot on the next push to the upside around -$51,000.
05/24 It was possible to cash in the first lot at approx. -$51,000. Suggested stop on close now at -$52,500.
05/25 Suggested stop on close at -$52,000.
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.
Emotional Extremes
Many beginning traders undergo emotional extremes, feeling sheer ecstasy after a win, but crushing disappointment after a loss. However, as a mature trader you grow to realize the folly of allowing the natural ups and downs of trading to impact your emotions.
As a winning professional trader, you may be able to stay calm and relaxed after a series of losses, but remaining rational and composed can be a challenge. It’s only natural to question your methods at times ─ to wonder about the validity of what you are doing. On the other hand, it’s also natural to get caught up in the euphoria of a winning streak and become complacent or even overconfident. You can be lulled into a false sense of security in your overconfidence and become tempted to take unnecessary risks. Proper risk management is a must, and can help you to remain evenhanded by insuring a smooth, steadily rising equity curve.
It's important to realize that your trading performance moves in cycles ─ sometimes you will be profitable and sometimes you won’t. Gaining awareness and acceptance of the fact that “sometimes you win, sometimes you lose” will help you to control your emotions. By trading in an optimal state of mind, you increase your chances of achieving long-term financial success.
© 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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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! |
If you wish to review Spread Scans from the past 3 months,
please follow any of the following links to its weekly issue:
March 2011 |
April 2011 |
May 2011 |
NEXT LIVE CHAT SESSIONS:
Wednesday, June 1, 2011
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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.
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.
Joe Ross & Trading Educators, Inc. own all rights, title and interest to this publication. No part of this publication may be reproduced, in whole or in part, or by any means, mechanical or electronic, without permission in writing from the Publisher. You have no rights to resell, reprint, reproduce, or digitize Joe's Spread Scan Newsletter. While all attempts have been made to verify information provided in this publication, neither the author nor the Publisher assumes any responsibility for errors, omissions, or contrary interpretation of the subject matter herein.
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Connect with Joe Ross &
Trading Educators
Trading for a Living
Trading for a living involves more than getting in and out of the market at the right time, and more than thinking about moving averages and indicators. Trading is a business, not just a job, and every business in the world has to be managed. Every business involves the managerial functions of organizing, planning, delegating, directing, and controlling. Click on the following link to read more about Trading for a Living.
Commodities Futures Trading
Part of making money in futures trading is in understanding how to select a market, and in understanding the little things that make one market more tradable than another market.
Do you know exactly what it is that defines an established trend? Are you aware that trends are part of the market’s symmetry? Click on the following link to read more about Commodities Futures Trading.
Futures Spreads
The rationale behind spread trading is one of the best-kept secrets of the insiders of the futures markets. While spreading is commonly done by the market "insiders," much effort is made to conceal this technique and all of its benefits from the "outsiders" ─ you and me. After all, why would the insiders want to give away their edge? By keeping us from knowing about spreading, they retain a distinct advantage. Click on the following link to read more about Futures Spreads.
Learn Futures
Chances are, although you may have read a lot of material in your effort to thoroughly learn futures trading, there are still a great many details you need to understand which are rarely revealed in most available material. You need to learn futures from the inside; gain the knowledge the insiders guard so carefully, and without which you can hardly expect to achieve genuine success. Click on the following link for more details about learning futures and acquiring the information you need towards a more rewarding trading life.
Trading Discipline
All the discipline practiced before your order has been filled, including the trading discipline derived from practice and repetition, finally comes into play as self-control in a battle situation. The moment you are filled you are in battle, and if you are not fully prepared you will begin to behave emotionally. Without the discipline gained through practiced repetition resulting in self-control, you will begin to act irrationally, emotionally. Fear, greed, pride, guilt, and other emotions will come into play, causing you to fail to carry out your strategy or to implement the tactics you need for fulfillment of your trading plan. Follow the link below to read more about trading discipline.
The Law of Charts
Joe Ross' approach to the markets has enabled him to trade with very low risk, often much lower than you can imagine. As you’ll see, it’s an approach that raises avoidance of loss to the highest pinnacle of decision-making. It’s an approach whose chief characteristic is avoidance of over-trading, and an almost fanatical avoidance of loss of capital. Perhaps most surprising of all, this approach, which has kept him very safe in the markets, has also been unusually profitable year in and year out. You might be wondering, “How can this be possible?" Follow the link below to find out more about the Law of Charts.
JOE ROSS' MARKET COMMENTARY
WORLD MARKET NEWS
To succeed in the current economic environment, you need to know what's going on. We live in a global economy. What happens in China affects what happens in Europe and in all the Americas. World Market News brings you vital information about currencies, precious metals, energy, agriculture, and interest rates from every corner of the Earth. There is good news and bad. Too often, all we hear from the media is that all is well ─ that everything is normal. But if you scratch the surface, you find that underneath it all you are not being told the truth. They often leave out news you would like to or need to hear, but which does not fit their sensationalist mode of operation. Click on the following link to find out more about WORLD MARKET NEWS.
TRADING SEMINARS SCHEDULE
Day Trading Seminar for E-mini S&P, Forex, and Stocks - ONLINE LIVE SEMINAR - October 8-9, 2011- seminar is presented live by Joe Ross
The Law of Charts Flash Cards - 2-HOUR LIVE ONLINE CLASS WITH JIM AUGUSTINE. To reserve a session for yourself and lock-in your reservation for the next available class, please follow this link to sign up now for the Law of Charts Flash Card online class.
Trading the Traders' Trick Entry- ONLINE CLASS LIVE WITH JIM AUGUSTINE. Follow this link to reserve your "Traders Trick Entry" online class NOW!
Day Trading Seminar - Trade Along with Joe - in Bologna, Italy - October 16-17, 2011
presented by Joe Ross and Francesco Fabi
Futures Spread Trading Seminar— in Bologna, Italy — October 14-15, 2011
presented by Joe Ross and Francesco Fabi
Private One-on-One Tutoring with Joe Ross
This is YOUR private training as a trader — Joe builds the course around YOU and YOUR needs. All sessions last as many days as your wants and needs dictate (most are for three days), and are taught near Austin, Texas, U.S.A. with Joe Ross in person — OR, if you prefer, Joe can train you online via the Internet.
SEMINARS YOU CAN DOWNLOAD:
From Joe's incredible depth of wisdom and knowledge he shares with you his innermost secrets for consistent and profitable trading; consistency and profitability are the hallmark of the world’s most successful traders. These are Joe Ross' online courses currently available:
The Law of Charts Online Video Seminar with Joe Ross
Futures Spread Trading Online Video Seminar with Joe Ross
Options Trading Online Video Seminar for beginning and intermediate Option Traders with Joe Ross
Options Strategies Trading Online Video Seminar with Alan Parry
Visit Joe Ross' Online Blog "Trading for a Living"
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