Trades in Stock Options. Receive daily trade recommendations. Can you imagine discovering a way to trade that promises instant income? If you think such a method is impossible, think again. It is definitely achievable, and everything you need to know is available online for one low price that includes special three-part online webinars.
Ambush is a time-proven mean-reversion day trading System focused on a variety of Futures markets around the globe. With Ambush Signals you can now easily follow the Ambush System on a subscription basis for educational purposes.
If you didn't fail early in your trading business, then you have probably been around long enough to realize that many of the problems you encounter as a trader are those that derive from your own individuality. Such problems are common among traders and, in fact, common among all human beings. Seeking spiritual help from a power much greater than your own is the area I address in the "Spiritual Side of Trading".
At times in the past I got so wrapped up in day trading that I no longer could see the forest for the trees. I convinced myself that I needed to day trade because I don't have much time for trading. So I limited my day trading to 1-1.5 hours per day. Then along came a student, and I realized for about the thousandth time that if I really didn't have a lot of time for trading, I ought to be trading the weekly charts.
My friend John and were going over some strategies, and I was telling him about someone I know who trades only the weekly charts and who is making a lot of money.
I said to John, "All he does is trade Exchange Traded Funds (ETFs) from the weekly chart. The rest of the time he spends on the beach. He follows the sun, and for him it is springtime and mild summer wherever he goes."
Is that not an enviable lifestyle that many, if not most, traders dream about? I will show you just one of the many ETFs available for trading. By trading them from the weekly charts, you avoid all the confusion and noise of daily and intraday charts.
On the chart above, the green arrow indicates the first clearing of the consolidation. Its low was 20.08. The high of the consolidation was 20.07. The red arrow points to a Traders Trick Entry to trade short. The black arrows all point to unfiltered Traders Trick Entries to go long. Each Traders Trick is preceded by a Ross Hook. Although there may be fewer trades per ETF, an even better way to trade any market is with “filtered” Traders Trick Entries. The percentage of winning trades is exceptional. Here is a link to Traders Trick Advanced Concepts.
Someone asked, “What in the world is 'covalent bonding of futures pairs?’”
Covalent bonding of futures pairs is said to create the best trading system portfolio structure. After the most stable individual futures parameters have been selected, the optimal portfolio should be created. Atoms share electrons to form molecules of a substance. This same covalent bonding process finds the trading system's most profitable futures, then tests all futures to find the best futures pair, and then the best possible futures for the optimal portfolio. Often the best futures, most profits divided by lowest draw-down, will not be part of the best futures pair. Covalent bonds share the daily equity runs so when one futures or pair loses money, another futures or pair should gain equity. Adding the euro to T- Bonds, or Japanese yen to the British pound, may lower the combined maximum equity draw-down to a figure lower than the maximum equity draw-down of either individual futures. This is the function of covalent bonding applied to optimal portfolio construction.
The optimal portfolio structure is completed when the percentage of individual futures equity gain increases less than percentage of maximum equity draw-down. Portfolio A makes $500,000 with a maximum equity draw-down of $25,000. Adding a new futures increases the profits by 10% to $550,000, buts also increases the equity draw-down from $25,000 to $30,000. While a $5,000 draw-down increase is small in comparison to a $50,000 profit increase, the futures should not be added, since it increases maximum equity draw-down by 20%. Adding more contracts of a futures already within the optimal portfolio with less risk may be safer than a risk increase of 20% for a gain of 10%. It is a little known, or understood, fact that some futures, within a system portfolio, may add up to four contracts and successively lower the maximum equity draw-down while profits are increased with each addition.
Having said all that, I have no idea what it means. Do you. All I did was answer the question. : )
On 1st January 2019 we gave our Instant Income Guaranteed subscribers the following trade on Mosaic Company (MOS). Price insurance could be sold as follows:
On 2nd January 2019, on a GTC order, we sold to open MOS Feb 15 2019 23P @ 0.25, with 43 days until expiration and our short strike about 21% below price action, making the trade very safe.
On 8th January 2019, we bought to close MOS Feb 15 2019 23P @ 0.10, after only 6 days in the trade.
Profit: 15$ per option
Margin: 460$
Return on Margin annualized: 198.37%
Philippe
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You will need a system or plan if you want to succeed in trading. The usual way of attaining such a system is...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.
With Ambush Signals you can easily follow Ambush, a system specialized in catching intraday market tops and bottoms in the Futures markets.
Sign up for Ambush Signals Today!
LEARN ABOUT AMBUSH TRADING METHOD
With Ambush Signals you can easily follow Ambush, a system specialized in catching intraday market tops and bottoms in the Futures markets!
The most popular and easiest way to follow Ambush is Ambush Signals. It does all the work for you, allows you to customise what markets you want to see and has a position sizing tool implemented to automatically adjust the positions to your risk preferences.
Each day around 6:30 pm NY Time the Signals are available for you on the Dashboard. You can then place your orders and literally walk away until the next market close! To find out more about the details of Ambush and how Ambush Signals works, have a look at the Ambush Signals Website.
Let’s be realistic. Following any System can be tough, especially in the beginning. It simply needs time to build the confidence needed to make it through inevitable drawdowns. So what if you are unlucky and don’t catch a good start right away?
I want you to succeed trading Ambush Signals, so here’s something for you that will strongly increase your odds of success and allow you to easily gain the confidence you’ll need to become a long-term profitable Ambush trader.
Did you come up with questions? Don't be shy, email Marco Mayer, he wants to hear from you! This email address is being protected from spambots. You need JavaScript enabled to view it.
To view previous published Chart Scan newsletters, please log in or click on "Join Us,"
shown above, to subscribe to our free "Members Only" section.
A WEALTH OF INFORMATION & EDUCATION:
Joe Ross-Trading Educators' popular free Chart Scan Newsletter has been published since 2004.
Note: Unless otherwise noted, all charts used in Chart Scan commentary were created
by using Genesis Financial Technologies' Trade Navigator (with permission).
Legal Notice and Copyright 2018 Disclaimer - Published by Trading Educators, Inc.
Chart Scan is a complimentary educational newsletter.
This week I had a request to show something that traders in Brazil could use. I chose a stock that is traded in both the U.S. and in Brazil, and possibly at many other exchanges. What I am showing is that you can use a tick (equitick on some software) chart rather than a time chart for trading in any market. Tick charts remove the element of time from the price action. What we are interested in here is trading volume, not share volume. We want to create a chart that shows "X" number of trades made per price bar. Creating this kind of chart enables us to a certain extent to customize the chart so that it fits the way we like to trade.
However, I submit this chart with the following cautions:
The flaw in using tick charts is time coupled with charting inaccuracies. The time aspect is that the Law of Charts formations that one sees on those charts are fantastic, but they are very difficult to manage in live trading. The challenge is that the beautiful formations that you see on a historical chart can take 30 minutes or 30 seconds to form. Therefore, you either fall asleep before the formation completes itself or you don’t have time to get the order placed. In addition, the tick bars can change shape completely when your trading software corrects or recalculates the data. It doesn’t happen often, but enough to cause a problem: a formation would look one way during live trading and then after the nightly update, it would look similar, but different enough to change how you would have traded it.
Tick charts seem like they might be useful to see inside a reversal bar, but not on their own.
When trading tick charts, you must be “on” 100% of the time that you are trading, because you never know how long it will be before a tradeable formation happens. With time charts, you know that you have a few minutes while the bar completes, so you can unplug from time to time.
The chart below is a 700 tick chart of "RIO." As you can see, much of the time it would have been fairly easy to trade. There are times when prices are moving sideways on a time chart, but experimenting with various numbers of ticks per price bar you can create a chart that is trending. Tick charts may be just the right kind of chart to use for non-trending markets, or to peek inside of reversal bars. Note also that the Law of Charts works just as well on a tick chart as it does on a time chart.
Why does simulated trading work so well, but when you do the same thing in the live market everything falls apart?
Has this happened to you? Simulated trading, to a large extent, has replaced what was once called "paper trading." Simulated trading is much closer to the real thing, but still some of the best methods and systems fail in real trading. What are the factors that make the difference between the two?
There are many factors, some emotional, and they can be difficult to figure out without doing a lot of research into the reasons why. In this trading article I am going to show you only one factor. But that "one" may be the greatest method and system killer there is.
Many methods and systems are set up to use limit orders. If prices hit your limit price, the computer running the simulation assumes you are filled. But the truth is that unless you are a very large trader, you will be filled on a limit order at your limit price 10% or less of the time if all prices do is touch the limit and do not trade through the limit. Why does that happen?
It is because of the way the exchanges handle the order queue. The queue is filled first-in, first-out, BUT your place in the queue is also affected by size. The exchange gives priority to the largest orders.
When you trade on a simulated basis, the ordering of the queue is not taken into consideration. So you happily trade the simulation of your method or system and dream dreams of wealth and fame. But when you put your money on the line in real trading, the dream bubble bursts and you are faced with the reality of the way the exchange handles the queue.
Below are two graphs. The first graph is of a method that in simulated trading using limit orders for both entry and exit wins 80% of the time. For every one dollar lost it earns $2.56. The net profit for the method is $16,625 trading a 1-lot.
Following is the graph of the same method traded the same way over the same period of time. The only stipulation is that outcomes are counted only if prices trade through the limit price. Changing that one requirement yields the following: The method wins only 42% of the time. For every one dollar lost it earns only .49. The method produces a net loss of $13,500 trading a 1-lot.
On 30th December 2018 we gave our Instant Income Guaranteed subscribers the following trade on Cisco Systems Inc. (CSCO). Price insurance could be sold as follows:
On 3rd January 2019, on a GTC order, we sold to open CSCO Feb 08 2019 36P @ 0.34, with 35 days until expiration and our short strike about 16% below price action, making the trade very safe for a blue chip.
On 7th January 2019, we bought to close CSCO Feb 08 2019 36P @ 0.15, after only 4 days in the trade.
Profit: 19$ per option
Margin: 720$
Return on Margin annualized: 248.80%
Philippe
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This week, we're looking at short HGK19 – HGN19: short May 2019 and long July 2019 Copper (COMEX at Globex).
Today we consider a Copper calendar spread: short May 2019 and long July 2019 Copper (COMEX at Globex). The spread has been trading in a range between 0.50 and -0.90 for almost two months. Will the spread drop below the December low and will it follow its seasonal path to the down-side?
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.
Ambush Traders close the year with a crazy $7,100 trade in the E-Mini S&P 500
Days before the end of 2018, on December 26th, all the stock indices rallied like crazy posting new record single-day gains. This includes the E-Mini S&P 500 which rallied 119.5 points from open to close. What a crazy day. Now stock traders surely celebrated due to this but guess what trading method did even better and got long very close to the low of the day?
Right, the Ambush System - because that's exactly its job. Thanks to the entry close at the day's low Ambush ended the day with a profit of 142 points, that's $7,100 trading just one contract!
And with that, Ambush Traders happily close the year and look forward to a great start in 2018!
Happy Trading!
Marco
LEARN ABOUT AMBUSH TRADING METHOD!
With Ambush Signals you can easily follow Ambush, a system specialized in
catching intraday market tops and bottoms in the Futures markets
Learn all you need to know about our new Ambush Signals service during this presentation by Marco Mayer. What is the Ambush System, what's the idea behind it and how does Ambush Signals make trading Ambush so much easier!
Join us and become an Ambush Trader!
The most popular and easiest way to follow Ambush is Ambush Signals. It does all the work for you, allows you to customise what markets you want to see and has a position sizing tool implemented to automatically adjust the positions to your risk preferences.
Each day around 6:30 pm NY Time the Signals are available for you on the Dashboard. You can then place your orders and literally walk away until the next market close! To find out more about the details of Ambush and how Ambush Signals works, have a look at the Ambush Signals Website.
Let’s be realistic. Following any System can be tough, especially in the beginning. It simply needs time to build the confidence needed to make it through inevitable drawdowns. So what if you are unlucky and don’t catch a good start right away?
I want you to succeed trading Ambush Signals, so here’s something for you that will strongly increase your odds of success and allow you to easily gain the confidence you’ll need to become a long-term profitable Ambush trader.
Did you come up with questions? Don't be shy, email Marco Mayer, he wants to hear from you! This email address is being protected from spambots. You need JavaScript enabled to view it.
To view previous published Chart Scan newsletters, please log in or click on "Join Us,"
shown above, to subscribe to our free "Members Only" section.
A WEALTH OF INFORMATION & EDUCATION:
Joe Ross-Trading Educators' popular free Chart Scan Newsletter has been published since 2004.
Note: Unless otherwise noted, all charts used in Chart Scan commentary were created
by using Genesis Financial Technologies' Trade Navigator (with permission).
Legal Notice and Copyright 2018 Disclaimer - Published by Trading Educators, Inc.
Chart Scan is a complimentary educational newsletter.
Ambush Traders close the year with a crazy $7,100 trade in the E-Mini S&P 500
SCROLL DOWN TO READ MORE ABOUT MARCO MAYER'S AMBUSH SIGNALS!
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Good thru Janary 11, 2019
It’s summer here in Uruguay, and so Loretta and I took a two-week cruise down to the southern end of world—cape horn and the straits of Magellan.
That far south it’s cold even during summer. We saw beautiful icy glaciers, snow, and rugged mountains. We were 14 days in all and the food aboard ship was wonderful.
We got back just in time for rainy weather, and Christmas which was followed by a three-day Tormenta (wind and rain storm). There are now lots of leaves and branches of trees covering the streets.
I didn’t see any trees that were toppled, but I’m sure there were some. On the day before New Year’s Eve, I had to remove tree limbs from my driveway in order to get the car out.
During the week after Christmas, we had a company meeting and made some major decisions about how we could improve products and services.
For me the highlight of the meeting was the decision to make a major change in the Instant Income Guaranteed product. For over four years we have never taken a monetary loss on any trade we made.
However, not taking losses came at the expense of tying up funds, in some cases, for longer than we feel was necessary. For me the fact that we went so long without a loss of capital was phenomenal,
and proved a long-held point that it was possible to trade without losing money.
We made a decision that in the future, we would allow some small losses in order to take advantage of better opportunities. We also are expanding Instant Income to include at least one additional, well-proven strategy.
We anticipate that our 100% winning percentage will drop to around 94%, but will overall make more money.
There is an old Chines saying purported to be a translation of a traditional Chinese curse: “May you live in interesting times.” While seemingly a blessing, the expression is normally used ironically, with the clear implication that "uninteresting times" of peace and tranquillity are more life-enhancing than interesting ones, which, from a historical perspective, usually include disorder and conflict. My friends, we are now in those times.
The truth is that there is no evidence that there is an equivalent expression in Chinese. More than likely the expression originated in England.
We live in a world of many lies. The truth if difficult to find. Years ago, when deciding what to call my first trading seminar, I decided to give it the name, “Trade the Truth.”
At Trading Educators, we have always held to that decision. Our overriding goal is to bring you the truth in trading to the best of our ability.
On 17th May 2017, we gave our Instant Income Guaranteed subscribers a trade for VALE (Vale SA).
We entered a "complex position", entered for a net credit (still working with OPM, i.e. other people's money, as usual), but with unlimited upside potential.
On 17th May 2017, we entered the trade for an average credit of 2.49 (or 7.47 = 747$ for 3 positions).
On 7th September 2017, we sold to close one third of our long position.
On 5th January 2018, we bought to close all our short position.
On 2nd October 2018, we sold to close the second third of our long position.
On 10th December 2018, we sold to close the last third of our long position.
Profit: 1321.50$
Margin: 330$
Average Short Strike: 16.47$
Return on Margin annualized: 256%
Return on Principle annualized: 51.2%
We stayed 272 days in the trade, and the annualized returns were on the high side. All we had to do was to maximize our profits along the way, by being patient, closing the last long position for a reduced profit (trade war, end of year weakness).
This was a low maintenance, low stress trade with lots of upside potential.
Philippe
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Trading in the zone means that you achieve and intense degree of concentration and focus. Usually, trading in the zone requires that you have and are following a trading plan, otherwise it's difficult to maintain your poise and focus when the pressure is on you to perform.
Trading in the zone means that you must do whatever you can to reduce psychological pressure. The most obvious way to relieve such pressure is to think in terms of probabilities and carefully manage risk. Plan ahead for a possible loss.
You may not win on any single trade, but with proper planning over a series of trades, you will have enough winners to make a profit in the long run.
It's also important to manage your risk. Determine your risk up-front and risk only a small amount of trading capital on a single trade. Doing that will remove a lot of the pressure, allowing you to be more open to see the opportunities that the market offers.. Consider the possibility, of a trade going against you and be ready to recover from it.
Ambush Traders close the year with a crazy $7,100 trade in the E-Mini S&P 500
Days before the end of 2018, on December 26th, all the stock indices rallied like crazy posting new record single-day gains. This includes the E-Mini S&P 500 which rallied 119.5 points from open to close. What a crazy day. Now stock traders surely celebrated due to this but guess what trading method did even better and got long very close to the low of the day?
Right, the Ambush System - because that's exactly its job. Thanks to the entry close at the day's low Ambush ended the day with a profit of 142 points, that's $7,100 trading just one contract!
And with that, Ambush Traders happily close the year and look forward to a great start in 2018!
Happy Trading!
Marco
LEARN ABOUT AMBUSH TRADING METHOD!
With Ambush Signals you can easily follow Ambush, a system specialized in
catching intraday market tops and bottoms in the Futures markets
Learn all you need to know about our new Ambush Signals service during this presentation by Marco Mayer. What is the Ambush System, what's the idea behind it and how does Ambush Signals make trading Ambush so much easier!
Join us and become an Ambush Trader!
The most popular and easiest way to follow Ambush is Ambush Signals. It does all the work for you, allows you to customise what markets you want to see and has a position sizing tool implemented to automatically adjust the positions to your risk preferences.
Each day around 6:30 pm NY Time the Signals are available for you on the Dashboard. You can then place your orders and literally walk away until the next market close! To find out more about the details of Ambush and how Ambush Signals works, have a look at the Ambush Signals Website.
Let’s be realistic. Following any System can be tough, especially in the beginning. It simply needs time to build the confidence needed to make it through inevitable drawdowns. So what if you are unlucky and don’t catch a good start right away?
I want you to succeed trading Ambush Signals, so here’s something for you that will strongly increase your odds of success and allow you to easily gain the confidence you’ll need to become a long-term profitable Ambush trader.
Did you come up with questions? Don't be shy, email Marco Mayer, he wants to hear from you! This email address is being protected from spambots. You need JavaScript enabled to view it.
To view previous published Chart Scan newsletters, please log in or click on "Join Us,"
shown above, to subscribe to our free "Members Only" section.
A WEALTH OF INFORMATION & EDUCATION:
Joe Ross-Trading Educators' popular free Chart Scan Newsletter has been published since 2004.
Note: Unless otherwise noted, all charts used in Chart Scan commentary were created
by using Genesis Financial Technologies' Trade Navigator (with permission).
Legal Notice and Copyright 2018 Disclaimer - Published by Trading Educators, Inc.
Chart Scan is a complimentary educational newsletter.
This week's Chart Scan is from an email I received from my friend Jack.
A lot of people have been asking about gold; should they go long, short, stay out, what? On the chart you will see a long bar with an arrow. It is marked "MB." That bar is a measuring bar. Notice how all Closes (and Opens) fall within the range of that measuring bar. At my seminars, in my books, and in various writings elsewhere, I have described the use of a measuring bar. The rest, slightly edited for clarity, is from Jack:
"The weekly gold chart below presents a great lesson in congestion. The HUI, as you know, is an index of gold mining stocks. I use it on a weekly time frame to give me the scoop on where we are trend-wise or not.
"With so many newsletter gurus spouting gold is going to the sky, I use HUI as a proxy for the gold stock market. Do I want to be long or short or out? It has been a tough summer for many gold bug traders, and if you look at the HUI on a weekly chart can you spot the congestion?
"Joe's method of congestion identification has saved my bacon more times than I can count.
"Using the bar formed 2017-03-03 as the measuring bar (MB), there has been an open or a close inside that bar's range for 8 weeks! In this case every bar’s open, close, or both took place inside the measuring bar. If you wanted to trade gold stocks on a daily chart, the weekly trend will guide you to look for daily entries and exits. The longer term is the more powerful term, and you must know where it is to be able to survive trading on a shorter term (daily) chart.
"One of the most valuable things I have ever learned from Joe is when to stay out of a trade. Jumping in when there is no underlying force from a longer time period has cost me plenty. If I am frustrated with a lot of stop outs, I will go out to the longer term and usually spot the congestion.
"Also, notice that the present congestion on the weekly chart is adjacent to a previous sideways price action began 2017-01-06.
What if you had a rule to move up your stop to just above a reversal bar in a downtrend or underneath any reversal bar in an uptrend? It is what Joe teaches and it works. You let the price action tell you what to do, or not do. The trend that started in 2016-01-22 went 15 weeks without a reversal bar. How do you know when to stay in a trade or get out? It does not get much simpler or more powerful than that.
"Too many methods focus 95% on entries. Everyone wants to enter trades. Learning when to enter, when to exit, and when to stand aside are all equal."
If you would like to learn to read the language of the charts you might consider taking private tutoring with Master Trader Joe Ross, or taking our online webinar “The Law of Charts in Depth.”
Trading Article: Win or Lose: You Are A Winner Every Day
Have you ever spent the day making trade after trade and gotten nowhere? You may have wondered why you woke up that morning, or even bothered trading that day. Perhaps there have been a few days where you've felt this way this week. It's been a hard week so far. If you aren't doing very well, it is understandable. Uncertainty abounds. On days when you are feeling unproductive, it's important to have an upbeat attitude, though. You need to lift your spirits. So what if a given trading day wasn't fruitful? Who cares if you lost money today? Take it all in stride. How can you be so carefree, you ask? Real money was lost, so how can anyone convince himself or herself to feel good? There are trading days when your rewards are tangible profits and you can bask in the glory of success, and then there are those days where you must chalk the day up to experience. You settle for saying, "Perhaps I learned something valuable today. Let's figure out what I learned and be grateful that I got something from my trading.”
What did you learn today? What did you experience? Did you make it through the day relatively unscathed? That's worth something. Maybe you learned that you could stand aside when you wanted to and get out of harm's way. It is something worth learning. Maybe you jumped into the markets too soon, and felt a little bit of regret from losses. Were the losses justified? Did you follow your plan, but the plan didn't work?
If you lost because of a faulty plan, it's still valuable knowing that you could follow a plan. Losses due to impulsive decisions are another matter, however. If you traded impulsively, perhaps you learned how you might prevent impulsive decisions in the future. No matter what happened, though, you learned a valuable lesson.
In the modern, competitive world, we are obsessed with winning races. We want to make more profits than the next trader, and when we fail to make profits, we feel beaten. But the only benchmark that should matter is your own. So what if you don't make profits every single day? Maybe you do not yet have the skills or financial resources to make a profit every day. Even if you consider the metaphor of winning a race with other traders, would you try to run a marathon without the proper amount of practice? Would you feel disappointed if you couldn't reach an athletic goal that you knew would take more training than you had? You definitely would not, so why make such high and lofty trading goals? Give yourself a break. Sometimes it is wise to just do your best and accept what you've achieved. When you set high goals that exceed your skills, you will usually feel discouraged, and that may make you feel like giving up. Rather than kicking yourself for not performing up to par, consider the lessons you learned as a win, and keep on trading.
On 15th November 2018 we gave our Instant Income Guaranteed subscribers the following trade on Teletech Holdings Inc. (TTEC). Price insurance could be sold as follows:
On 20th November 2018, we sold to open TTEC Dec 21 2018 22.5P @ 0.20, with 35 days until expiration and our short strike about 24% below price action, making the trade very safe.
On 3rd December 2018, we bought to close TTEC Dec 21 2018 22.5P @ 0.10, after only 13 days in the trade
Profit: 10$ per option
Margin: 450$
Return on Margin annualized: 62.39%
Philippe
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There are any number of reasons why a trader hesitates before a trade. The main one is lack of planning. Without a plan, there is no degree of confidence a trade will be successful, it’s all wishful thinking. Unless they are outright gamblers, traders usually have a strong need to protect their assets and avoid risk. This is especially true for beginning traders. It can take a long time to build up sufficient capital for serious trading. By that I mean sufficient capital to be able to trade for a living. It is quite understandable to fear losing all or part of your initial capital. Beginners tend to seek absolute certainty before taking a risk, and gaining true confidence in their ability to trade successfully can take time. Unscrupulous marketers of mechanical trading systems and methods take advantage of the beginners fears and lack of confidence by advertising “sure-fire” “magic” ways to trade, instead of revealing the truth about the difficulties in becoming a consistently successful trader.
When it comes to short term trading, there isn't very much time for long deliberations. Market conditions are in continuous flux. Decisions need to be made relatively quickly, and if one waits too long to execute a trade, he or she may miss a significant opportunity. The reasons for hesitation are everywhere, and traders must be aware of them, and create a plan to prevent them.
Identifying, directly facing, and eventually eliminating a problem of hesitation is the only way to truly deal with it. Chronic hesitation will eventually destroy the confidence a trader needs for success. If the problem is not dealt with and the traders continues to hesitate, miss important market moves, and see his or her equity begin to dwindle, that trader runs the risk of becoming a phantom trader, a pretender, becoming convinced that the imaginary trades being made are real. If you are prone to hesitation, it's vital that you deal with this problem early in your trading endeavors. Identify the reasons for it, confront the problem, and make changes as soon as possible. These are changes you have to make within yourself. If you will truly engage in self-examination with the object of eliminating hesitation, you can trade become consistent and successful in trading profitably.
While everyone is confused about the Dollar, Ambush Traders cashed in heavily in 2018!
The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Dollar Index Future (DX) traded at the ICE, where Ambush Traders are having a really nice time lately.
Ambush day trades on an end-of-day basis so there’s no need to even check the markets during the day.
As you might remember we talked about the Dollar Index a couple of times already during 2018. It’s been one of the trickiest markets to trade this year as there’s a lot of uncertainties. Luckily Ambush has no trouble at all in such markets, quite the opposite and so Ambush Traders had a really good time throughout the year trading DX!
Luckily Ambush has no trouble at all in such markets and so Ambush Traders continued having a really good time trading DX!
Here’s a chart of the last 6 months of DX trading. As you can see it’s been going sideways (or nowhere, see red boxes) most of the time. In between we had some failed breakouts and small rallies to the next trading range level.
Once you realize that this isn’t that uncommon but that it’s exactly what the markets do most of the time don’t you want a strategy that works well under such conditions?
Where’s the Dollar Index going next? For sure to either the top or the bottom of the trading range it’s in. As Ambush Traders we don’t mind, we’ll be there ready to sell to or buy from the novice traders who’ll then accelerate our profits as they got to get out of their next losing trade.
Here’s the result of all of these trades, trading one Dollar Index (DX) contract, including $10 commissions/slippage per trade.
Is it always like that? Of course not, but if you’ve been on the other sides of these trades trying to buy the breakouts you maybe should think about switching sides!
With Ambush Signals you can easily follow Ambush, a system specialized in catching intraday market tops and bottoms in the Futures markets.
Join us and become an Ambush Trader!
Save up to $629 on Ambush Signals Today!
As you know I don't send out emails to you very often. But as many of you have been asking me about longer-term subscriptions for Ambush Signals at a discount, I thought this might be interesting to you. Usually, I only offer monthly or 3-month subscriptions, but till Saturday you can also get:
Additionally, you can get the Ambush eBook$500 off, for $1,299 instead of $1,799: simply use the coupon-code "ambush500“ at the checkout.
You can find out more about the sample portfolios and the long-term performance of each of the Ambush Markets on the Performance Page.
2018 has been quite a year for Ambush and if you missed it so far, join us now for what looks like a promising finale of the year and start 2019 on the right side of the markets.
Join us and become an Ambush Trader!
The most popular and easiest way to follow Ambush is Ambush Signals. It does all the work for you, allows you to customise what markets you want to see and has a position sizing tool implemented to automatically adjust the positions to your risk preferences.
Each day around 6:30 pm NY Time the Signals are available for you on the Dashboard. You can then place your orders and literally walk away until the next market close! To find out more about the details of Ambush and how Ambush Signals works, have a look at the Ambush Signals Website.
Let’s be realistic. Following any System can be tough, especially in the beginning. It simply needs time to build the confidence needed to make it through inevitable drawdowns. So what if you are unlucky and don’t catch a good start right away?
I want you to succeed trading Ambush Signals, so here’s something for you that will strongly increase your odds of success and allow you to easily gain the confidence you’ll need to become a long-term profitable Ambush trader.
Now if instead of simply getting the daily Ambush Trading System Signals you want to know the actual trading rules behind the System, you can get the Ambush eBook$500 off, for $1,299 instead of $1,799 by using the coupon code "ambush500“ at the checkout.
Happy Trading!
Marco Mayer
Learn all you need to know about our new Ambush Signals service during this presentation by Marco Mayer. What is the Ambush System, what's the idea behind it and how does Ambush Signals make trading Ambush so much easier! Find out more about Ambush and Ambush Signals!
To view previous published Chart Scan newsletters, please log in or click on "Join Us,"
shown above, to subscribe to our free "Members Only" section.
A WEALTH OF INFORMATION & EDUCATION:
Joe Ross-Trading Educators' popular free Chart Scan Newsletter has been published since 2004.
Note: Unless otherwise noted, all charts used in Chart Scan commentary were created
by using Genesis Financial Technologies' Trade Navigator (with permission).
Legal Notice and Copyright 2018 Disclaimer - Published by Trading Educators, Inc.
Chart Scan is a complimentary educational newsletter.
Can we use "The Law of Charts" to locate good spread possibilities? We surely can. Our friend Daniel sent me a message about this spread. He wants to go long the New Zealand dollar and short the Canadian dollar.
As we view the charts below, we see that the New Zealand dollar (Kiwi) has already formed a 1-2 low, and at the very least can be said to be moving sideways overall. However, the Canadian dollar (Loonie) has broken below consolidation and is strongly moving down as of the writing of this issue of Chart Scan.
Simply by observation, we can see that it might pay off well to buy the Kiwi and sell the (Loonie). This trade can be made in Forex or in Futures, your choice.
If you would like to learn to read the language of the charts you might consider taking private tutoring with Master Trader Joe Ross, or taking our online webinar “The Law of Charts in Depth.”
Some have asked for more information about Point and Figure charts. Here's a message from our friend Braam: P&F as I do it is a whole different method of short term trading than you will find in any book. As I always want to improve myself, I have bought all books on P&F. Most of them were a waste of money. But the best I have ever read is "The Definitive Guide to Point and Figure" by Jeremy du Plessis ISBN 1 - 897 - 59763 - 0. I want people to know this before they spend a lot of money on worthless books.
The “Mystery Players” in The Options Markets
The Mystery Players are primarily the large brokerage houses. They want to sell you options. They discourage you from selling because they want to sell to you – they want you to be the buyer, knowing that majority of all options will expire worthless.
Option market makers are very real and very smart. It is to structure your orders properly in relation to the bid/ask. It’s see orders coming into the market and watching to see if they get filled. If you can do 100 lots, you can pretty much split the bid/ask and get filled.
Anything less than that has to be very close to the bid or offer to get filled (unless you don't mind waiting to see if the underlying stocks or futures go your way).
It took me a while to figure out that all the market movers do is to artificially manipulate the price away from the "theoretical value" via the bid/ask, take the trade, and then offset that trade in the underlying to capture the spread. Market makers know the importance and advantages of delta neutral, and are always working to stay neutral. I think that there is tremendous power to the trader who knows how to be neutral in several different ways before any trade is even initiated. In reference to ‘theoretical value,’ my opinion is that an option (or anything) is worth whatever someone is willing to pay for it.
The buyer of an option has the most odds stacked against him/her. After getting creamed in the bid/ask spread, paying an outrageous commission, an option buyer still has to be right about price direction in a certain time frame. And even if all of these odds are overcome, and the option goes in the money, it is still losing some value every day, which is why I will rarely buy another option.
Trade selection. Trade selection. Trade selection. Trade selection. The easiest way to put odds more in your favor is good trade selection. I cannot express how important this one thing is. And yet it took me awhile after starting to trade options before I could truly see this.
The markets are there to fill orders. That’s really what it’s all about. So if someone gets upset because their order got filled, then maybe they should think about what kind of order they placed, i.e. get stopped into a trade, next time.
This week, we're looking at selling NGM19 – NGN19: short June 2016 and long July 2019 Natural Gas (NYMEX on Globex).
Today we consider a Natural Gas calender spread: short June 2016 and long July 2019 Natural Gas (NYMEX on Globex). Natural Gas moved up like a rocket a few weeks ago and so did our Natural Gas spread, but with only 1 months in difference of both legs of the spread, the move was much less dramatic. Will the spread now follow its seasonal path lower? The seasonal time window (11/26 – 04/16) is very wide and with a suggested initial stop above the November high we give the spread enough room to develop.
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.
Update on Ambush Performance and a Special you don't want to miss!
With Ambush Signals you can easily follow Ambush, a system specialized in catching intraday market tops and bottoms in the Futures markets.
Save up to $629 on Ambush Signals Today!
As you know I don't send out emails to you very often. But as many of you have been asking me about longer-term subscriptions for Ambush Signals at a discount, I thought this might be interesting to you. Usually, I only offer monthly or 3-month subscriptions, but till Saturday you can also get:
Additionally, you can get the Ambush eBook$500 off, for $1,299 instead of $1,799: simply use the coupon-code "ambush500“ at the checkout.
Ambush System takes off to End-of-Year Rally!
Yes, Ambush did it again as most of the Ambush markets and portfolios just hit new all-time equity highs in November. Looks like it just started off to a nice end-of-year rally, don’t miss it!
Trading has surely been tough lately for a lot of traders, especially due to the crazy correction we had in the stock markets in October. That’s a recipe for disaster for many trading strategies but for Ambush it’s one of the most favorable market conditions. And oh boy did it rally during that period. The Ambush Small Portfolio, for example, showed a performance gain of over 8k within just two months of trading! Thanks to that rally, almost all Ambush markets are now showing nice gains for 2018.
Of course, this is just a tiny part of the whole Ambush history, so let’s zoom out and have a look at the broader picture. Ambush has been around for about 10 years now. That’s exceptional for a trading system. Actually, it’s the only one I know that’s been around that long with most systems working no longer than a couple of months. But as markets tend to change, I do review Ambush once a year to see if any changes are necessary to adapt to changing market conditions. The last time any significant changes have been required was in July 2015. As you can see on the following chart Ambush kept on performing as expected since then in live trading.
You can find out more about the sample portfolios and the long-term performance of each of the Ambush Markets on the Performance Page.
2018 has been quite a year for Ambush and if you missed it so far, join us now for what looks like a promising finale of the year and start 2019 on the right side of the markets.
Join us and become an Ambush Trader!
The most popular and easiest way to follow Ambush is Ambush Signals. It does all the work for you, allows you to customise what markets you want to see and has a position sizing tool implemented to automatically adjust the positions to your risk preferences.
Each day around 6:30 pm NY Time the Signals are available for you on the Dashboard. You can then place your orders and literally walk away until the next market close! To find out more about the details of Ambush and how Ambush Signals works, have a look at the Ambush Signals Website.
Let’s be realistic. Following any System can be tough, especially in the beginning. It simply needs time to build the confidence needed to make it through inevitable drawdowns. So what if you are unlucky and don’t catch a good start right away?
I want you to succeed trading Ambush Signals, so here’s something for you that will strongly increase your odds of success and allow you to easily gain the confidence you’ll need to become a long-term profitable Ambush trader.
Now if instead of simply getting the daily Ambush Trading System Signals you want to know the actual trading rules behind the System, you can get the Ambush eBook$500 off, for $1,299 instead of $1,799 by using the coupon code "ambush500“ at the checkout.
Happy Trading!
Marco Mayer
Learn all you need to know about our new Ambush Signals service during this presentation by Marco Mayer. What is the Ambush System, what's the idea behind it and how does Ambush Signals make trading Ambush so much easier! Find out more about Ambush and Ambush Signals!
To view previous published Chart Scan newsletters, please log in or click on "Join Us,"
shown above, to subscribe to our free "Members Only" section.
A WEALTH OF INFORMATION & EDUCATION:
Joe Ross-Trading Educators' popular free Chart Scan Newsletter has been published since 2004.
Note: Unless otherwise noted, all charts used in Chart Scan commentary were created
by using Genesis Financial Technologies' Trade Navigator (with permission).
Legal Notice and Copyright 2018 Disclaimer - Published by Trading Educators, Inc.
Chart Scan is a complimentary educational newsletter.
"Teach our students the truth in trading - teach them how to trade,"
and
"Give them a way to earn while they learn - realizing that it takes time to develop a successful trader."
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.
