Edition 808 - December 27, 2019
Trading Educators hopes you enjoyed celebrating Christmas with your family and friends.
As we move into a new decade, be sure your trading plan is up to date for a profitable New Year!
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Options and Moving Averages Part 1
I’ve noticed lately that more and more trading websites have been promoting the use of options for profit as compared with trading straight futures or stocks. One of my email addresses is literally being bombarded with offers to teach traders how to trade options and how to employ a variety of option strategies.
Often these emails give you a basic strategy for a directional trade, and then ultimately try to recruit you into using the leverage of options to show you that although the basic strategy results in profits, the magic strategy they are selling will result in considerably greater profits if you perform the strategy using options.
A typical strategy being offered is through the use of a moving average, usually a 50 bar Exponential Moving Average (EMA), although a Simple Moving Average will usually be just as good.
The idea behind this kind of trading, is that there is some sort of magic about a 50 bar moving average that makes it viable in any time frame. There is nothing magic about a 50 bar MA, other than that enough people believe in it that it has become a self-fulfilling prophecy. Here’s what such a strategy looks like, and if followed carefully and with good common sense, can be profitable with futures or stocks.
Obviously, this strategy worked quite well for a directional trade in the bond market. It probably works even better with stocks because stock traders react heavily to the 50 MA. Notice that the second sell short trade would not have done well on a 10-minute chart, but, depending on your trade management it could have been successful on a weekly or monthly chart. In either case, the suggested entry is a close above or below the 50 MA, with a protective stop either above or below the 50 MA, depending upon the direction of the trade.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Fighting Back
It's not the number of times you fail that matters. It is all about getting back up after you've been knocked down. Ask any successful person and you'll find that he or she has experienced a mountain of failure. Trading is a challenging profession. Few make it, and of those who do, many eventually...read more.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Trading Idea: Instant Income Guaranteed
BZUN Trade
- On 18th October 2019, on a GTC order, we sold to open BZUN Jan 17 2020 25P @ 0.40, with 96 days until expiration and our short strike about 43% below price action, making the trade very safe.
- On 29th October 2019, we bought to close BZUN Jan 17 2020 25P @ 0.20, after 11 days in the trade.
Philippe
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© by Joe Ross and Philippe Gautier. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
Trading Article: Repeating the Same Mistakes
Anyone is allowed to make one mistake. When the mistake is repeated, watch out! The third repetition of the same mistake constitutes self-destructive...read more.
Andy Jordan is the editor for Traders Notebook which shows you Futures Trading Strategies in Spreads, Options, and Swing Trades. Learn step-by-step how to trade successfully.
© by Andy Jordan. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Marco Mayer's Ambush Signals: 2019 In Review
I can't believe that 2019 is already over, it feels like it just started! For me, it was a great year with a lot of opportunities, interesting developments and a very good trading year. Just right before the year ended I launched the new ambush-signals.com offering now three different subscription models and a complete overhaul of the website and product. A personal discovery for me has been that besides a huge passion for trading, another part of me is an engineer who loves to come up with great solutions, optimize things and build products.
So I thought what I want is just being a full-time trader, but what I found out this year is that I also need to give the engineer in me room to act out. Otherwise, I end up screwing up the trading part too by trying to perfect my trading and make things too complicated. I guess in the retrospective that's what went wrong with AlgoStratsFX which was a very sophisticated trading system. Instead what kept on actually working and performing very well was the astonishingly simple and hence robust Ambush System. Let's say I learned something from that experience and this year basically went further in that direction.
That's how I ended up with almost 50% profits and very little (about 7%) drawdown this year:
How did I do it? By trading in a very simple, very boring and slightly hazardous way. But I guess that's enough for now, I'll tell you more about it in 2020!
I wish all of you a Happy New Year and all the best for your trading!
Happy Trading!
Marco
Marco Mayer is an Educator for Forex, Futures and a Systematic Trader, so if you have questions, he wants to hear from you! Contact Marco with questions!
Check out Ambush Signals
LEARN ABOUT AMBUSH TRADING METHOD
© by Marco Mayer. 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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