Edition 873
March 26, 2021
We would like to welcome our newest newsletter subscribers, glad you joined our trading team! In each Chart Scan edition, we provide invaluable trading examples and lessons, so take the time to read and reread the material provided to you. We do not promote holy grail or get rich quick schemes, only examples handed down by our professional traders. Slow and steady wins the trading race so as you begin diving into our material, feel free to send questions and let's learn trading together.
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Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Which Indicator?
Joe, I have read most of your books and I have a question for you. In your Trading the Ross Hook book you mention using Bollinger Bands as a trade "qualifier" and then in "Trader's Musings" you mention to use the Channel or Camelback method. Oftentimes you get one saying to take a trade and the other has it disqualified. Which one is the better method?
The answer may seem trite, but the method that works best for you is the better one. Maybe both methods will work for you if you choose them at the right time.
In “Trading the Ross Hook”, I showed how to trade without indicators. All indicators have a glaring weakness. YOU are the weakness. If you choose the right number of bars to register the indicator, you can make it work for you. But just when you think you have it right, the market will change, and then you have to change something. It could be the number of bars you include for the basis of a moving average. Maybe you have to change the time frame. Maybe you have to change the underlying market.
There is no best way to trade. There is only what works for you. I have seen thousands of successful traders. They may take what they learn from me or someone else, but they eventually make it their own. They learn the ins and outs of using the indicators they choose. They know when an indicator is revealing what they are looking for and when it is not.
Let’s say you wanted to trade the Nasdaq Index using Moving Average Bands. Starting in April you go long and simply stay long until prices move below the upper band. You would have made a lot of money, but eventually, you had two very bad signals to sell short.
Next, let’s assume you wanted to trade the same market using reversal bars at the Bollinger Bands outer line. In this case you received many not-so-good sell short signals, and two good buy signals. Is one better than the other? It depends on what you want to accomplish.
Some indicators can give wonderful results, but one indicator can contradict another, even though they are both good in the proper situation. You have to find out what works for you. There is no magic in trading. In the case of the two charts above, the bad MA band sell signals are identical with the good Bollinger Band buy signals.
© 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.
Using his discovery of the Ross Hook as the nucleus for his trading approach, Joe Ross goes beyond his admirable chart-reading abilities to include the pivotal, sine qua non of any successful business endeavor, money and trade management. In this book, Joe puts the light over the often-repeated, yet never operationally-defined trading axioms. Most notably these include, “Cut your losses and let your profits run,” and “Trade only with the trend.”
Trading The Ross Hook reveals Joe’s trading approach, which has enabled him to trade with very low risk, often much lower than you can imagine. It's the essence of almost 60 years of experience in trading. Most surprising of all this approach, which has kept him very safe in the markets, and has also been unusually profitable year in and year out.
ADD JOE ROSS' S HARDBACK BOOK TO YOUR LIBRARY TODAY! CLICK HERE!
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: How Long?
Hi! Can you give me some principles to determine how long I should set an expiry for in a pending order? Should it be a multiple of the time frame (e.g., 12 X 15 minutes)? If so, what multiple would you recommend? Some other method?
You sent an interesting question...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 - QLYS Trade
A gap down on earnings near major support zone often leads to some sideways action, with a drop in implied volatility.
This is what happened for QLYS (Qualys Inc.). On 16th February 2021, we sold QLYS Mar 19 2021 85P at 1.20, with our short strike about 18% below price action and 33 days until expiration.
We could buy to close this option 13 days later at 0.50, for 70$ profit per option, and an annualized return on margin of 115.61%.
Philippe
TRADING SUCCESSES EMAILED TO YOU DAILY!
WE DO THE RESEARCH FOR YOU
CLICK HERE TO 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.
Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, and Day Trading, and Editor for 20+ years with Traders Notebook, daily advisory newsletter.
Trading Article: Being Confused While Trading!
A thorough understanding of who you are and what makes you tick is essential in trading. How and what you think, what you believe, and how you behave are critical parts of winning in trading as well as winning in life. It seems very few traders understand, or are aware of this...read more.
Andy Jordan wants you to learn trading and highly recommends that you invest in yourself. Private mentoring with Andy is the first step to improving your trading, his students find this very helpful to accelerate their trading successes.
Private Mentoring with Andy Jordan – Sign Up Today
© 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
A quarter of Ambush trading the E-Mini S&P 500
One of the top markets over the last couple of months for Ambush Traders has been the E-Mini S&P 500 future. Doesn't matter whether you traded the E-Mini or the E-Micro contract - you surely had a really good time!
Here's a daily chart of the E-Mini S&P 500 (ES, traded at CME), 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 for a few days and then swing back in the other direction. It amazes me all the time how great Ambush is in getting in at exactly these swing-points. Have a look for yourself:
The edge of Ambush is that we get in on such days BEFORE everyone else does when the swing-point is already in place. We participate and profit from those coming in later when the move is often already over (thank you guys!).
Here are the results of these trades, trading only one ES contract:
Yup, that's over $15k profits with almost no drawdowns with just 20 trades. This gives us an average trade profit of $800 and a profit factor of 8! This means we had 8 times as much profits as losses within that period. That's literally insane!
Now the E-Mini S&P 500 Future is a large contract and not suitable for small accounts. But you can do these trades also in the E-Micro S&P 500 which is just 1/10 the size and more than liquid enough for Ambush Trading. Remember we don't get in and out of the market 10 times a day and make our brokers rich. We place our order once a day and walk away till the close!
That's what makes Ambush Signals so great, it works with any account size offering three subscription models depending on your goals.
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!
Don't miss the next trade and join Ambush Signals today!
Happy trading,
Marco Mayer
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.
Identifying the Ross Hook, the Trend and Congestions
You learn exactly what Ross Hooks are and see their origins and what causes them to occur. Joe shows you step-by-step how to correctly identify them as there are several “pointy” places on a chart, but not all of them are Ross Hooks. You will learn why Ross Hooks occur only in trending markets and also the conditions in which a Ross Hook is nullified.
Joe will give you the tools and the set of rules, according to which, you can clearly identify whether you are in a trend or in congestion. You will be amazed by these simple rules that have actually worked long before Joe started trading, and are still working today.
ADD JOE ROSS' S HARDBACK BOOK TO YOUR LIBRARY TODAY! CLICK HERE!
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 creator of the Ross hook™, and has set new standards for low-risk trading with his concepts of "The Law of Charts™" and the "Traders Trick Entry™." Joe was a private trader and investor for much of his life, but a serious health situation in the late 80'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 trading approach.
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 many different languages. His students from around the world number in the thousands. His file of letters containing thanks and appreciation from students on every continent is huge: As one student, a successful trader, wrote: "Your mastery of teaching is even greater than my mastery of trading."
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 founder and contributor of the company's newsletter Chart Scan™.
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.
To accomplish our mission for our students we educate them so that they know and understand:
Benefits for our Clients:
- Where prices are likely to move next.
- Independence from complicated trading methods, magic indicators, and black-box systems.
- Independence from opinion, anyone's opinion, including their own.
- Independence achieved through knowing how to read a chart.
- Independence through having knowledge of insider actions.
- Independence achieved by taking holistic and eclectic approaches.
- Independence coming from knowing how to manage both the trades and themselves.
- Independence because they understand and trade what they see.
- Independence because they have learned how and why prices move as they do, through studying the truth in trading and the truth about markets.
Students learn only proven methods and techniques, which helps them to preserve capital and create more consistent profits; they are offered simple methods that will assist them to earn while they learn.
- They learn to work smarter and more effectively.
- They learn to treat trading as a business; we offer no Holy Grail or magic systems.
- They learn to adapt to changing market conditions.
- They learn a systematic approach to trading rather than a mechanical system for trading.
- Why prices will move there.
- Who and what cause prices to move.
- How far prices are likely to move when they do move.
- Their own role in the movement of prices..
- How to take advantage of the knowledge they receive.
- How to properly manage and exit a trade which they have entered.
- How to manage themselves and acquire the discipline needed to become successful traders.
Read some personal testimonials which Joe has received.
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Note: Unless otherwise noted, all charts used in Chart Scan commentary were created
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© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.
