Spread Scan with Commentary

Commentary by Andy Jordan Trader, Trading Mentor for Spread, Swing & Options Trading at 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 well-rounded trader by showing you, within the context of the markets, how to trade spreads.

Weekly Spread Scan Example This week we look at LEV4 - HEV4: long October 2014 Live Cattle and short October 2014 Lean Hogs (Globex). Today we consider an inter-market spread in the meats: long October 2014 Live Cattle and short October 2014 Lean Hogs (LEV4 - HEV4). After trading sideways for a long time, the spread broke out to the up-side in June, and reached almost 45.000 on June 26. Since then the spread has been moving lower, but is now trading at an interesting level (see chart above). Will resistance become support? So far we don't know, but as long as the spread keeps trading above the current level there is a good chance the spread will move higher again in August with the help of seasonality.

Previous Trades

On May 8 our method “Stealth Trader” generated an entry signal for the next trading day. We got short with 2 contracts on June Swiss Franc (first red arrow), and we reached our first target on the next day (first blue arrow). We trailed the stop for the second lot at the high of each daily bar, and got stopped out on May 21 with a nice profit (second blue arrow).

With an initial risk of $440 per contract, the method generated a profit of $1,318 (trading two contracts). This trade was also possible to transact using the Forex instead of the Futures market.

Find out more about Stealth Trader by following this link!

Trading Article

Don't Give In to the Death W ish

The death wish is resignation, fatalism, dejection, despair — in the face of "luck" repeatedly turning against us. The death wish is admitting defeat, 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, going the other way, and getting better — so intent is it on making an airtight case concerning the sadness of its plight.

Try to not 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!

© 2014 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

Thank you for signing up to receive Spread Scan and your free bonus material, “Introduction to Spread Trading,” which is complimentary with your free weekly Spread Scan subscription. This Spread Scan Newsletter is emailed to you every Wednesday. Also, you should have received one free edition of Traders Notebook.

Spread Trading offers the most efficient use of your trading capital — more efficient than any other way we can think of to trade. If you are a trader in the stock market, please realize that futures spreads are the equivalent of "pairs" in the stock market. If you trade pairs in the stock market, you can use most of that information for trading spreads in futures.

Spread trading is heavily used by the "big" traders. It is a fact that 60% of Goldman Sachs' trades are spread (pairs) trades. The large commercial commodity houses trade spreads. You will find these "big boys" like Cargill, Archer Daniels Midland, corporate farmers, commodity funds, and many of the grain storage companies are trading in spreads. Why do they do it? It is because they, too, are interested in the most efficient use of their capital, along with the generally lower risk you find in spread trading.

Anytime there is an area of trading for which there is not much information, you can be certain the insiders don't want you to know about it. Futures spreads and stock market pairs are two of the best kept secrets around. You will rarely, if ever, hear them mentioned on financial TV programs, or read about them in financial publications. It's time for you to wake up to the many, many advantages of spreads.

We would now like to bring you further along in your understanding of the interesting world of Spread Trading through a companion video, a next-step 25-minute online seminar especially prepared to give you a greater depth of understanding about how you, too, can lower your risk through the art of spreading. We know that some people find it easier to learn from a video, We hope that you will join in.

Get the "Introduction to Spread Trading" companion video here.

SPREAD SCAN FEEDBACK

Dear Spread Scan Subscriber,

Your feedback is the most valuable tool we have to keep our services focused on the needs of our traders. Our goal is to give you the very best possible trading education. Please take a moment to follow this link to our brief survey to answer some questions about our Spread Scan Weekly Newsletter.

Thank you so much for your response. We will post your uplifting and encouraging feedback in our upcoming editions.

View last week's Spread Scan #515
from July 9, 2014

A WEALTH OF INFORMATION & EDUCATION

TRADING SEMINARS SCHEDULE

Attend the webinar on July 26, 2014
Money Master - Advanced Concepts,
with Joe Ross
Follow this link

Attend Joe Ross' 3-hour online class on August 23, 2014
The Traders Trick Seminar – Advanced Concepts
See how to trade the Traders Trick Entry (TTE)
using advanced trading concepts
with Joe Ross
Follow this link

Attend the 2-Day webinar October 4-5, 2014
TRADING SEMINAR FOR
STOCK INDICES, CURRENCY FUTURES,
FOREX, COMMODITIES, AND STOCKS,
LIVE ONLINE
with Joe Ross
Follow this link

Attend the webinar on November 22, 2014
Trading with MORE Special Set Ups,
with Joe Ross,
Follow this link

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 in Atlantida, Uruguay
with Joe Ross in person, OR if you prefer,
Joe can train you online via Internet.
Follow this link to Joe's Private Tutoring
to find out more.

Trading Success Stories

Read comments from a wide array of students and customers who found success through Joe Ross and Trading Educators.

With thousands of satisfied students and customers in more than 25 countries, Joe Ross and Trading Educators have an unsurpassed track record of success in trading and in teaching.

Joe has reams of letters and emails from his students thanking him and proclaiming his expertise. Joe has helped people at every level of experience in their trading.

Joe Ross wants to help you, too, to manage and simplify your trading. Joe understands his fellow traders and the obstacles they face in their trading. He also understands trading so well that he can show you powerful ways to maximize your trading potential. Follow this link to read what our students have to say about Joe Ross, Trading Educators, and our services.

Traders Forum - for Traders with passion and a desire for increasing knowledge

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!

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. 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 & options 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, where he currently lives. 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 ups and downs of the markets because of his adaptable trading style, using a low-risk approach that produces consistent profits.

Joe 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™." He 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 has written twelve major books, several E-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 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 more than 5 decades of trading and investing, Joe still tutors, teaches, writes, and trades regularly, and is an active and integral part of Trading Educators. He is the primary author and Editor-in-Chief of the company's newsletters: Chart Scan™, Spread Scan™, Traders Notebook™, and the moderator of his popular trading forum. Lately, Joe has been the chief trader for Money Masters International, where for the first time in his life he has been willing to trade money for others due to the safety and profitability of the Money Master strategies. Contact: info@mmaster.biz.

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 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...

Safe Senders List

This email was sent to you by Trading Educators. Help ensure that your Spread Scan email newsletters are always delivered to your inbox (rather than to bulk or junk folders).
Log in to your email account now and add
info@spread-trading.com to your address book, contacts or “Safe Senders” list. Follow this link to get detailed help on how to add this newsletter to your safe senders list, depending on your e-mail service provider.

Unsubscribe or change subscription

To change your subscription or to unsubscribe, scroll past the end of this newsletter and click the "unsubscribe" link.

Copyright 2014. 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.

Legal Notice

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.