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Edition 356 Wednesday, June 22, 2011 |
If you have problems reading this newsletter, please follow this link Important: please add Spread Scan and our e-mail address, info@spread-trading.com, to your e-mail address book to ensure regular delivery. Learn more. Spread Scan with Commentary
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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 EUU1 - SFU1: long September 2011 Euro FX and short September 2011 Swiss Franc
Today we consider an inter-market spread in the currencies: long September 2011 Euro FX and short September 2011 Swiss Franc (EUU1 - SFU1). Even though seasonality has been pointing to the upside since March (red dashed line), the spread has dropped strongly during the last 3 months. As indicated by the gray lines, the spread has been trading in a down channel since April of this year, not showing any sign of a turnaround. Usually seasonality would drive this spread higher during the next few weeks, but will this happen this year with all the trouble in Europe? Traders might want to wait until the spread breaks out to the up side of the channel, and calculate enough risk for this volatile spread. |
On June 12 we told subscribers of our professional daily spreads & position/swing trading newsletter, Traders Notebook, "Consider entering an inter-market spread in the meats: long October Feeder Cattle and short December Live Cattle at a close above $17,100. Suggested risk is $1,000; initial projected objective is $1,000, then higher. Basis is seasonal and some possible support at the current level."
Here's how we suggested managing this trade:
06/13 In at approx. $17,450; suggested stop on close at $16,700.
06/14 It was possible to cash in the first target at approx. $18,450 (if not, this should be possible overnight or tomorrow); suggested stop on close at $17,700.
06/15 Suggested stop on close at $17,900; suggested second target at $19,450.
06/16 Suggested stop on close at $18,250; suggested second target at $19,450.
06/17 It was possible to cash in the second lot at approx. $19,450. Suggested stop on close at $18,750.
06/21 Suggested stop on close at $19,500.
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.
Student's Question: Hi Andy, what is “walk-forward” testing?
Walk-forward testing is the first real step in testing any system on live data. A trader should be somewhat confident that the system or method can produce results in line with the hypothetical results received from back testing.
At this stage of testing, it’s important to watch a trading system or method run over live data for a period of weeks or months until a large, statistically valid universe of sample trades have been reviewed. By using a walk-forward trading process, you can gain a better understanding of the intricacies involved in making sure that the system is successfully executed in real-time.
Many trading systems or methods seem to work well during back testing, but fail miserably when it comes to live trading. Therefore, any trading method has to be tested under real market conditions before going live with real money, by using a simulator or a paper account.
© 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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SOCIAL NETWORKING WITH ANDY JORDAN
Joe Ross' trading books are actually full-blown courses for traders. Each of them is designed to deal with a different aspect of trading, such as futures intraday and position trading, spreads, seasonal trading, options trading, etc. The books teach you how to trade the reality of the markets. You look right over Joe's shoulder at real trades made in real markets. You learn his reasoning for entering and exiting his trades. Please follow this link to learn more about Joe Ross' trading books. |
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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April 2011 |
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June 2011 |
NEXT LIVE CHAT SESSIONS:
Wednesday, June 22, 2011
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NEXT EURO CHAT SESSION:
Wednesday, June 22, 2011
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You can also view our saved weekly Chat Logs in case
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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,
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Joe Ross has been trading the markets, virtually all of them, beginning
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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.
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.
This publication is not intended for use as a source of any advice such as legal, medical, or accounting. The Publisher wants to stress that the information contained herein may be subject to varying international, federal, state and/or local laws or regulations. The purchaser or reader of this publication assumes responsibility for the use of these materials and information. Adherence to all applicable laws and regulations, including international, federal, state and local, governing professional licensing, business practices, advertising and all other aspects of doing business in the U.S., Canada, or any other jurisdiction is the sole responsibility of the purchaser or reader. Neither the author nor the Publisher assumes any responsibility or liability whatsoever on the behalf of any reader of these materials.
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The World's Only Complete Spread Trading Seminar.
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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 surprised.
Click here to learn more about this Spread Trading Video Seminar
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 Futures 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 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™
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.
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 (limited to only 4 students per 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 (limited to only 4 students per class). 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. Follow this link to Joe's Private Tutoring for more details.
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 Options Pro Alan Parry
Visit Joe Ross' Online Blog "Trading for a Living"
Spread Scan with Commentary Previous Trades Trading Article Trader's Live Chat About Andy Jordan |
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