Edition 833
June 12, 2020
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Vee Bottoms
One of the most difficult situations for trading is that of a Vee bottom. In my book “Trading Is a Business,” I wrote about matching congestions. Sometimes they are a little hard to see, but they are there.
As we look at a chart of the DAX futures we see a sudden change of direction, a Vee-shaped bottom, with virtually no chance to get in based on anything clear setup. Vee bottoms represent a radical change in market direction, for reasons that are not always clear.
With a bit of practice, we can see the area of matching congestions, which occur when there is a serious overlapping of prices, when prices keep hitting the same level. I’ve drawn the lines on the chart to show you how I spotted the matching congestion. For whatever reason, that small range of prices is considered by traders as fair value. Notice how many opens, closes, highs and lows are contained within the matching congestions.
What you are looking for is a breakout from the congestion.
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.
Mental Gridlocks
By now you know you cannot change the markets. Joe Ross shows you that the only way to successfully trade them is to change your behavior in relation to them. Because the mental, emotional, and even spiritual aspects of your life can be part of the stakes involved, trading cannot be played as a game. Human beings excel at pattern recognition, and they have the ability to use patterns together with rules and procedures. However, you will learn that at times you must challenge and change these rules. Joe teaches you how to do that, and then shows you a great truth: it is traders’ perception of what is happening that causes both the actions and movement of price. Joe demonstrates that trading less leads you to making more money. In Joe's hardback book, Trading is a Business, you will also understand why trading based on opinions is a sure way to a “death sentence” in the markets. In addition, Joe helps you identify, handle, and deal with the many hang-ups that cause traders to lose in the markets. This book is a great add to your library.
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Break Out from a Trading Range
When prices are in a trading range, count the number of closes above or below a specific price near the vertical mid-level of the trading range. If 70% of the closes are above the mid-level price, and the market cannot rally and close above reaction highs, a severe correction may be...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
Instant Income Guaranteed - FIZZ TRADE
On 6th May 2020 we gave our Instant Income Guaranteed subscribers the following trade on National Beverage Corp. (FIZZ). Price insurance could be sold as follows:
- On 7th May 2020, we sold to open FIZZ Jun 19 2020 35P @ 0.40, with 42 days until expiration and our short strike about 32% below price action.
- On 15th May 2020, we bought to close FIZZ Jun 19 2020 35P @ 0.20, after 8 days in the trade.
Profit: 20$ per option
Margin: 700$
Return on Margin annualized: 130.36%
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
Andy Jordan presents...
Learn from the Best: Futures Spread Trading - Contact Andy Jordan
© 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
Trading Article: 5 Tips on How to Deal with Drawdowns
After the recent harsh correction in the stock markets and cryptocurrencies, many traders and especially investors currently find their accounts in a not so nice drawdown. So I thought this might be a good time to give some advice on how to deal with such drawdowns.
What’s a drawdown? Here’s a quick explanation: You buy one stock of a company at $100 and after a month it’s trading at $120. You’re now having profits of $20 or 20% on your account. Now the stock drops from...read more.
The Ambush trading System was created in 2007 by Marco Mayer. Since then it proved itself in the markets for over a decade and did so with exceptional results. It's the only trading system we're aware of that is still going strong after so many years. While Ambush is a day trading system, meaning you will always enter and exit on the same trading day - you don't have to sit in front of your trading screen. You simply place your entry orders when the trading session starts and come back at the close!
© 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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