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Edition 842

 

August 14, 2020

 

trading education

 

INTRODUCING A NEW PRODUCT BY ANDY JORDAN - READ BELOW

 

Andy Jordan Educator for Futures Trading Strategies on Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook

Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and 
Editor of Traders Notebook Complete and Traders Notebook Seasonal Spread Trading (TNsst)

NEW PRODUCT BY ANDY JORDAN
IT'S HERE - SIGN UP TODAY!
JOIN ANDY'S TRADING TEAM

Introducing:  Traders Notebook Seasonal Spread Trading (TNsst)

LEARN MORE - WATCH THIS INFORMATIVE VIDEO

Contact Andy Jordan
Click Here to Learn more!

© 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.

 

 

Andy Jordan Educator for Futures Trading Strategies on Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook

Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and 
Editor of Traders Notebook Complete and Traders Notebook Seasonal Spread Trading (TNsst)

Trading Article:  Wiping out the Trading Account

​Most successful traders failed at some point in their careers and wiped out their account. Many traders lose because they do not understand the nature of the decision-making process, which should be based on rational price action analysis versus emotional, irrational reactions to price action. A reason should be required for each...read more.

© 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.

 

 

 

Master Trader Joe Ross shares trading education

Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed

Chart Scan with Commentary:  Best Indicator

Hey Joe! If you had to choose one indicator for trading technical analysis what would it be? 

That’s easy. There really is only one choice, it’s the exponential moving average (EMA). Why is that? It’s because the EMA is the basis for many other indicators. Let’s face it, most indicators are nothing more than detrended EMAs. Stochastics, RSI, %R, DEMA, MACD etc., can all be created using and EMA. Even MCI, which is based on volatility, uses EMAs. Bollinger Bands, too.

Many of you know I’m not keen on using indicators unless they help you to see what you may not be able to see using your eyes. If you are going to use an indicator, the best ones are the ones that fit the type of market environment that you are currently trading.

Joe Ross shares trading success with Traders Trick Entry and Ross Hook trading methods example trading education

The exponential moving average is a variation of a simple moving average (SMA). Before computers were widely used for market analysis, traders relied on SMA indicators (blue line above) because they were easy and simple to calculate. To calculate a 10-day simple moving average, simply add the closing prices of the last 10 days and divide by 10. The 20-day moving average is calculated by adding the closing prices over a 20-day period and divide by 20, and so on.

As traders began using computers in the early 70s, they wanted to find ways to make improvements to the moving average. They wanted to find a way to create less lag between the price action and the indicator. The SMA was just not “fast” enough to react to volatile market swings. Traders wanted an indicator that was similar to an SMA, but would put more weight on recent price action and less on past price action.

You can see in the example above how the SMA reacts much slower to price action than the EMA (red line above). This is the primary reason why most short-term traders and day traders use the EMA instead of the simple one.

Notice how the EMA turns sooner than the SMA when prices change direction.

 © 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 shares trading education

Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed

Trading Article:  Bullish Divergence

Mr. Ross can you tell me exactly what is meant by “Bullish Divergence?” 

It’s really very simple. A Bullish Divergence occurs when ...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 Gautier shares his Instant Income Guaranteed trading education

Philippe Guartier:  Administration and
New Developments of Instant Income Guaranteed

Instant Income Guaranteed - CVS TRADE

On 9th July 2020 we gave our Instant Income Guaranteed subscribers the following trade on CVS Corporation (CVS). Price insurance could be sold as follows:

  • On 10th July 2020, we sold to open CVS Aug 21 2020 52.5P @ 0.63, with 41 days until expiration and our short strike about 14% below price action.
  • On 15th July 2020, we bought to close CVS Aug 21 2020 52.5P @ 0.30

Profit: 33$ per option

Margin: 1050$

Return on Margin annualized: 229.43%

Philippe

Receive daily trade recommendations - we do the research for you.

Joe Ross and Philippe Gautier share trading success with Instant Income Guaranteed options selling example trading education

Learn More!  Instant Income Guaranteed

© 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.

 

Marco Mayer shares trading success with Ambush Trading Method example trading education

Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading MethodAmbush Signals, and Head of AlgoStrats.com

Trading the Russell 2000 like a Pro

One of the top equity markets during the last couple of months has been the Russell 2000 Index for Ambush Traders. Whether they've been trading the regular RTY contract or the M2K Micro version of the Russell, profits just kept on flying in!

Here's a daily chart of the Russell 2000 (RTY), showing the last couple of months of trading. As you can see this market did what markets do 90% of the time, which is why Ambush is such a great trading method. Markets move in boxes/ranges, break out for a few days and then start moving in the next box. The Russell has been boxing a lot lately and so Ambush Traders had a lot of fun!

Marco Mayer shares trading success with Ambush Trading Method example trading education

Here are the results of the trades shown on the chart, trading one RTY contract:

Marco Mayer shares trading success with Ambush Trading Method example trading education

Yup, that's over $10k profits, meaning you'd have made about 1/10th of that trading the Micro M2K contract:

Marco Mayer shares trading success with Ambush Trading Method example trading education

Notice that all of these are actually day trades, even though they're based on end-of-day trading decisions. Ambush is exactly that, an easy way to day trade not for a few tiny ticks with a lot of stress but placing your trades once a day, walk away, and go for the big intraday moves!

Ask yourself whether you want to miss out on such trades or at least not be aware of the signals while trading these markets. 

I don't think you want to, so if you didn't already, join Ambush Signals today! For traders who prefer to trade the Micro contracts, we have a special Mini-Version of Ambush Signals that's a lot cheaper.

Happy Trading,
Marco

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!

LEARN MORE - AMBUSH SIGNALS

© 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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Chart Scan is a complimentary educational newsletter.

© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.