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Spread Scan Issue: October 14, 2009 - Volume 268
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 complete trader by showing you, within the context of the markets, how to trade spreads. Follow this link to view this week's Spread Scan immediately, or read on.
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 ensure that you receive all your issues of Spread Scan. That way you can continue to enjoy learning through the best free educational trading information available, and we can keep you informed about additional trading techniques, educational services and products to help you grow as a successful and profitable spread trader.
This week we look at KWZ9 – WN9: long December Kansas City Wheat and short December Chicago Wheat
Today we consider entering an inter-exchange spread: long December Kansas City Wheat and short December Chicago Wheat (KWZ9 – WN9). The spread was trading sideways in July and August before dropping to a low of 9 ½ in September. A few days later, the spread moved back up into the old trading range with possible support at 15. As long as this level holds, seasonality (10/19 – 11/27) might help the spread to move back up to 25 or even higher.
On October 7 we told subscribers of our professional daily spreads & position/swing trading newsletter Traders Notebook, "Consider entering a Crude Oil calendar spread: long February and short January Crude Oil (CLG0 – CLF0) at a close above 0.44. Please ask your broker about the margin. Suggested risk is $200; suggested first target at approx. 0.75, then higher. Basis is seasonal (10/15 – 12/9) and a possible resistance."
Here's how we suggested managing this trade:
10/08 In at approx. 0.50. Suggested mental stop on close at 0.30.
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
A Simple Idea to Improve Your Trading
by Joe RossI feel certain that my discipline in executing each and every trade according to my trading methodology is the secret to my success. If you want to improve your trading, what you need to do is very simple. Before you enter any trade, imagine that you will have to explain this trade to a panel of your peers, by explaining to them the reason for your entry, your money, trade, and risk management guidelines, and why you exited the trade. Imagine having to explain why you chose this particular market and this particular time frame, along with how you set objectives for the trade, and how you determined where your initial protection would be. If you can truly do this, I strongly believe that you can be successful.
SPREAD TRADING - GET A REAL MENTOR BY YOUR SIDESPREAD TRADING is one of the least known and best-kept secrets in the world of trading. It is, in fact, one of the most consistently reliable, potentially profitable, and safest ways to achieve real SUCCESS in trading.
Get a Real Mentor by Your Side
If you need a helping hand to turn your spread trading into a successful business, then 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 beginning, intermediate, and advanced traders.
Together, you and Andy Jordan will define the steps necessary to reach your goal, and Andy will give you a detailed plan of how to grow your trading capabilities to a professional level.
How Is It Done?
The Mentoring is done using the internet. We use the Skype platform (www.skype.com) for regular weekly communication, as well as e-mail for all the in-between questions and consultations. You will hear Andy Jordan, and you can talk directly with him (free of telephone charges) without any delays. Please note: we allow only ONE participant at a time, to make sure that the student being mentored receives the full attention he/she deserves.
What Do I Need?
You will need charts of the markets you want to trade. Delayed data is fine. If you don't have charts at the moment, please contact Andy Jordan. He will help you find an inexpensive solution. You will also need the Skype software (it is free at www.skype.com), together with a headset and microphone for communication.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 profitable and consistent way.We hope this summary of the program gives you a taste of what to expect, but there is more to know about the program. For further details regarding Andy Jordan’s Futures Spread Mentoring Program, please go to http://www.spread-trading.com/futures-training.htm
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Day Trading Seminar for
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Don’t loose another dollar on unnecessary taxes. Sign up today for the Traders Accounting Live! Webinars.
Increase Cash Flow With Tax Efficient Trading --
Oct. 15 2009 -- 5:00 PM PSTJim Crimmins, President of Traders Accounting will present a webinar on “Tax Efficient Trading”
Part of the survival for any successful trader is cash flow management. The largest expense a trader , whether the trader makes or loses money, is taxes. Every dollar we spend on taxes means we have one less dollar to trade with. With this in mind, it is obvious that as traders we have the obligation to do everything possible to keep as much money in our brokerage accounts as possible.
October 15th starting at 5:00 PM PST
Click Here to register for the online webinar
FRESH PERSPECTIVES - Ready for YOUR active participation.
Joe's live chats are an incomparable service from Trading Educators. The chats encourage forward-thinking, and inspire others by what is shared. Gather up your questions and comments, and "meet" other traders on line. Joe Ross will answer everything he can - come and join either his U.S. Live Chat or his Euro Live Chat:
Next U.S. Chats for October 2009
Wednesday, October 14, 2009
Wednesday, October 21, 2009
Wednesday, October 28, 2009
We hope you will join us!
Here
is where you login to Joe's Wednesday Chat
You can also view our saved weekly Chat Logs in case
you missed any Chats but want to be up-to-date
Next Euro Chats for October 2009
Wednesday, October 14, 2009
Wednesday, October 21, 2009
Wednesday, October 28, 2009
We hope you will join us!
Here is where you login to Joe's Euro Chat
You can also view our saved weekly Chat Logs in case
you missed any Chats but want to be up-to-date.
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 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(TM), and has set new standards for low-risk trading with his concepts of The Law of Charts(TM) and the Traders Trick Entry(TM). Joe was a private trader and investor for much of his life, but a serious health situation in the late 1980'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 approaches to trading. 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 student, a successful trader, wrote: "Thanks again for your trust and patience...Joe is a fountain of knowledge...but it is his wisdom that really sets him apart." 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 5 decades of trading and investing, Joe Ross still tutors, teaches, writes, and trades regularly. Joe 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(TM), Spread Scan(TM) , Traders Money Club™ and Traders Notebook(TM). 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. Give them a way to earn while they learn, realizing that it takes time to develop a successful trader."
Joe sets forth the mission of Trading Educators as follows:
- To show aspiring futures 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...
ABOUT ANDY JORDAN:
Educator
for Spread 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 favorite. 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.
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is much to be gained from the collective wisdom and experiences
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If you are willing to share what works for you, then we welcome you. Your ideas may help someone else on their 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 well over fifty years ago. He is now in his seventies, enjoying sharing his experiences of many years through his books, seminars, individual tutoring, and newsletters.
We hope you decide to join us in our forum to make your contributions as well.
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Disclaimer:
The Commodity Futures Trading Commission has asked us to advise you that trading spreads or outright futures 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!