You
have subscribed to Joe Ross' Weekly Spread Scan Newsletter.
If you have problems reading this newsletter, please follow this link:
Spread
Scan Issue: March 21, 2007 - Volume 136
This email was sent to you by Trading Educators.
To ensure delivery to your inbox (rather than to bulk or junk folders)
please add info@spread-trading.com to your address book.To unsubscribe, scroll past the end of this newsletter and click the "unsubscribe" link.
Otherwise, welcome to this week’s issue of the
Joe Ross Spread Trading Newsletter.Each week we present spread trading examples and opportunities in order to help you become a more professional spread trader.
Be sure you 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 keep you informed about additional educational services and products to help you grow as a successful and profitable spread trader.
Today we consider an intra-market Feeder Cattle spread: long April 07 Feeder Cattle and short May 07 Feeder Cattle (FCJ7 – FCK7). The spread has been in a down trend since October 06, moving in between two parallel trend lines. After breaking out of the channel last week, the spread seems to be ready to move higher.
Traders may want to enter the spread at a value of –1.10. Margin for the spread is $540 (reduced margin). Suggested risk is $400. Initial projected objective is $400, then a move to 0.40 or higher. Basis is seasonal (app. 3/5 – 04/26) and a RH.
On March 13 we told subscribers of our professional daily spreads & position trading newsletter, Traders Notebook, "Consider entering a NOB spread TYM7 – USM7 at a spread value of –4^02. Margin for the spread is $2,500 (no reduced margin). Suggested risk is $600. Initial projected objective is $600, then a move to –3 or higher. Basis is seasonal (app. 3/6 – 4/18) and a Hook."
Here's how we suggested managing this trade:
03/14 Suggest entering MOC tomorrow.
03/15 In?For more information about our daily newsletter, visit our Spread Website to find out more about Traders Notebook
Questions or Comments? Please email us: support@spread-trading.com
Something important from Joe Ross about becoming a perfect trader!
Student's Question: "Joe, I keep striving for perfection in my trading, but I seem to be up against a stone wall. How do you go about becoming a perfect trader?"
Joe: You will never be a perfect trader. However, as traders we have a strong need to want complete control over the outcome of a trade. We want to believe that if we analyze the markets long enough, we'll have perfect knowledge and we can trade to perfection. But such desire leads to wrong assumptions that can do us more harm than good. Assuming we must have control restricts our actions and reactions, and the result can be unnecessary stress. When we reach a point of extreme stress, we have a strong desire to avoid dealing with problems, rather than facing them head on. We are human and subject to human failings. We are unable to be completely competent. We are unable to achieve everything we want to do. Think about it. If you could achieve every goal in life, or even in trading, what would be left to strive for? The spice of life would be gone. If you could ever achieve perfection, what would you do for excitement?
Thinking you have to be perfect produces fear and anxiety, which for traders often produces hesitation and self-doubt. Hesitation and self-doubt are the exact opposite of the character virtues you need to become a successful trader.
© 2007 by Trading Educators, Inc
Contact
Us
1509 Jackson Drive
Cedar Park, TX 78613
Phone: 800-476-7796 or 512-249-6930
You
can e-mail us: support@spread-trading.com
Office hours are Monday - Friday 9 A.M. to 5 P.M., U.S.C.T.
Unsubscribe or change subscription
To change your subscription or to unsubscribe, scroll past the end of this
newsletter to click the "unsubscribe" link.
Disclaimer:
The Commodity Futures Trading Commission has asked us to advise you that trading spreads is complex and carries a high degree of risk. While there is opportunity for incredible wealth building, there is also the risk of losing even more than you invested. Of course, that's not unlike most other businesses. But informed traders are the best traders!