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".
Chart Scan with Commentary: Classic Chart Revelation
The chart below is an old one, but I saved it for the great lesson it reveals. It was sent to me by one of my students in Brazil. I have no idea which market is represented by this chart. I know only that it is a daily chart and it is showing a 30 bar Commodity Channel Index (CCI). The CCI plot is generally graphed around a value of 0, with one line being fixed at +100 and another line being fixed at -100. There are many ways to use the CCI. Generally, it is used as an overbought/oversold indicator, but in my opinion it is much better used as trend following indicator. I don’t want to get into all the detail here concerning the best uses of CCI. You can find all the details of how I use it, along with many examples in our online webinar: “The Law of Charts In-Depth.”
The point is to show you that The Law of Charts works equally as well with indicators as it does with price bars. The way CCI is used on this chart was as a means of following the long move up. I can also tell you that I used CCI as shown, for the greatest trade I made in my entire life. To add sugar to this story, I can tell you that the greatest trade ever made by one of my students to make $16 million dollars over a period of almost 11 years was made using CCI.
If you want to use CCI to follow a trend the way I have done it for many years, and also have access to the formula for computing CCI, you will find it contained in my book, "Trading The Ross Hook."
CCI, in case you are wondering, represents the Mean Deviation of today’s typical price from a moving average of typical prices. It is very similar in nature to the calculation for Bollinger bands but is plotted as an oscillator rather than as an overlay.
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.”
Recently, I was asked the following question: Do you trade strictly by technical analysis or do you still try to watch the fundamentals as well?
For years I have differentiated between chart and technical analysis. Please allow me the courtesy of calling what I use as primarily ‘chart’ analysis, secondarily at times, technical analysis and when I think it is appropriate I throw in a bit of fundamental analysis. It is becoming more and more likely that the fundamental analyst may be destined for a lesser role than in the past. Increasingly, the large traders who once engaged in fundamental analysis are engaging in synthetic transactions based upon financial information. Financial trading today, far exceeds commodity trading, and seems to be ever increasing in that direction. For example, consider that a majority of business relationships are contractually linked to government indices like the Consumer Price Index (CPI). Labor contracts often link wage escalations to the CPI. Social Security payments are linked to the CPI. Commercial Real Estate leases are linked to the CPI. Cost of living increases and a variety of benefit programs often have CPI links. Is it any wonder that so many people hold their breath whenever the Federal Reserve Chairman belches?
However, there is a lot more to it than mere linkage and hot air from the Federal Reserve. The Federal Reserve and the government both fool around with the way the CPI calculation is made. The same is true for most of the major financial reports. It is because there are so many reports from so many bureaus and agencies, that it becomes almost impossible to perform fundamental analysis.
If one looks to the government reports on agricultural products, energy reserves, or mining production, it is no better. Producers lie to the government about inventories, intentions, and conditions. The farmer tells the government agent that he intends to plant corn, when all along he really intends to plant Soybeans. The rancher lies about his intentions to take his herds to the market. The natural gas companies lie about their ability to bring gas on line. Oil companies lie about their production and their reserves, and so it goes. Since reports are the major factor in most markets today, it is no wonder the markets behave so erratically. No one knows what to believe anymore.
On 19th November 2018 we gave our Instant Income Guaranteed subscribers the following trade on Alaska Air Group Inc. (ALK). Price insurance could be sold as follows:
On 20th November 2018, we sold to open ALK Dec 21 2018 57.5P @ 0.40, with 31 days until expiration and our short strike about 15% below price action.
On 27th November 2018, we bought to close ALK Dec 21 2018 57.5P @ 0.10, after only 7 days in the trade for quick premium compounding
Profit: 30$ per option
Margin: 1150$
Return on Margin annualized: 136.02%
Philippe
Receive daily trade recommendations - we do the research for you.
I have to admit I do talk to myself at times, maybe even a lot, especially when I’m facing a loss. Let’s say I’m down a bunch of points and...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.
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.
Recently, in Chart Scan I mentioned that if you want to trade a chart that is time-independent, you have two choices:
Point and figure charts
Tick charts
To create a tick chart, you need software that will enable you to do so. I use Genesis Trade Navigator. Either one will allow you to generate tick charts. Some programs call them "equi-ticks." Instead of each bar on the chart representing a specific amount of time, each bar represents a specific number of ticks. Tick charts change the entire structure of the prices you are looking at. The magnitude of the moves changes markedly, as well as having trends appear where there is no trend with charts based on time. The time between bars also varies. At a setting of 500 ticks per price bar, you might find an hour or more between bars, or a matter of minutes between bars, depending upon the liquidity of the market you are trading. This inability to know when the bar will change is a weakness in the use of tick charts, so be careful if you use them. The size and shape of the bar can change dramatically when least expected.
One of the nicest things about tick charts is that you can literally create them to match your own style of trading. Your chart for each market can be unique to you and you alone. The number and variety of tick charts is virtually unlimited. Someone trading a bar chart in which each bar contains 257 ticks is going to see a different chart from the person trading a bar chart in which each bar contains 250 ticks.
The chart below was sent in to me by one of our subscribers. It is a chart of the e-mini S&P. Each bar contains 1,000 ticks. This is the text that accompanied the chart: "Another example of using price bars and price bar relationships correlated with 15-min and 60-min charts. After a large go down, it is reasonable to have it go back up some."
"Once I’ve achieved success as a trader, then what? I’ve heard that after a while trading can become boring."
I know you would all like to have that problem, but I can vouch for its being true. I am always having to find new ways to trade or I do become bored. However, I have never run out of ways to trade that remain exciting, at least for a fairly long time.
After the objective techniques of trading (discipline, controlling losses, self-control, self-confidence, etc.) are mastered, the great traders have prescient insight and the ability to envision themselves and their methods as part of a higher realm where art, science, and markets become one with all life.
A professional trading friend of mine says it this way: "The great traders I’ve known have an enthusiasm for life. The word 'enthusiasm' comes from the Greek word 'Enthios' and means, 'God within.' Enthusiasm is contagious and causes men to rise above their abilities. Napoleon was known as the '100,000 man,' because on the battlefield his enthusiasm was worth another 100,000 men. Henry V was a brilliant '100,000 man' who lead his troops, outnumbered more than five to one, to startling victory at Agincourt, where over fifty Frenchmen died for every one Englishman. Great traders, scientists and artists recognize there is great art in all scientific endeavors, and there is great science in all artistic endeavors. Living one's life is the ultimate artistic statement."
Of course, you can always turn to helping others. There is a lot to be said for giving back some of what you have received in the way of good fortune. There is great reward and satisfaction in seeing another person make it as a successful trader.
On 1st November 2018 we gave our Instant Income Guaranteed subscribers the following trade on CF Industries Holdings Inc. (CF). Price insurance could be sold as follows:
On 2nd November 2018, we sold to open CF Dec 21 2018 40P @ 0.40, with 49 days until expiration and our short strike about 22% below price action, making the trade very safe.
On 7th November 2018, we bought to close CF Dec 21 2018 40P @ 0.20, after only 5 days in the trade for quick premium compounding.
Profit: 20$ per option
Margin: 800$
Return on Margin annualized: 182.50%
Philippe
Receive daily trade recommendations - we do the research for you.
During ongoing activities, such as day trading, you have to learn how to pace yourself. This means alternating between...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.
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.
From time to time we get this very important question: Is trading a sin? Often this question comes from people in ministry who want to become traders in order to fund various church activities.
The answer is: No, trading is not a sin, but trading without knowing what you are doing can lead to a lot of problems. Trading in and of itself is not considered to be gambling. The futures markets exist as a venue in which hedgers are able to “purchase” price insurance. The ability to hedge against rising or falling prices is the economic and social justification for the futures markets. However, gambling is considered to be foolish and sinful. Trading without adequate knowledge of the markets and of self is foolish, because by doing so you are gambling.
There is a certain amount of self-knowledge needed to choose the proper trading method. It has even been suggested that many small traders in the futures market, without knowing it, secretly want to lose. They jump in with high hopes - but feeling vaguely guilty. Guilty over "gambling" with the family's money, guilty over trying to get "something for nothing," or guilty over plunging in without really having done much research or analysis. Then they punish themselves for these or other perceived sins by selling out, demoralized, and at a loss for what to do next.
Interestingly, scripture itself say that "that which is done in doubt, is sin." That brings up a very interesting point to think about. I have often written that if you don't believe in yourself and in what you are doing, you are almost certain to end up a loser. If you don't have the courage of your convictions, you are trading in doubt.
Does this kind of sin mean you are condemned? Not at all! Sin is a very interesting subject. Sin has its own built-in penalties. But first we need to define what sin is. According to scripture, sin is breaking the law. But there are all kinds of laws. Not all law-breaking need result in the death penalty. For instance, you can break the law of gravity and not necessarily die. You can leap from a high place and maybe only break a bone! You can sin against your body by consuming lots of junk food. The result may not be death. The result may be the pain and suffering of a long illness.
There are all kinds of laws. There is even a Law of Charts! The Law of Charts is a concept that describes how a chart will look as the result of human emotional action and reaction in the market place. If you break that law, i.e., go against the clear flow of market energy, thrust, and momentum, you will pay the penalty for your sin. So the things we try to teach you at Trading Educators are all designed to get you in step with the flow of the markets. And far away from sin!
On 28th October 2018 we gave our Instant Income Guaranteed subscribers the following trade on Delta Air Lines Inc. (DAL). Price insurance could be sold as follows:
On 29th October 2018, we sold to open DAL Dec 21 2018 45P @ 0.42, with 52 days until expiration and our short strike about 16% below price action, making the trade very safe.
On 2nd November 2018, we bought to close DAL Dec 21 2018 45P @ 0.22, after only 4 days in the trade for quick premium compounding.
Profit: 23$ per option
Margin: 900$
Return on Margin annualized: 233.19%
Philippe
Receive daily trade recommendations - we do the research for you.
If you play tennis once a week against an opponent who plays tennis five times a week, who is likely to win? If you play chess or backgammon twice a year against someone who plays every day, who will mostly likely win?
You don’t have to start trading real money right away. Whenever someone goes through my mentoring program, there comes a time when I encourage the student to start paper trading before starting to trade with real money. Trading is like playing chess; you can learn a lot about it by reading books but if you really want to get good in it, you actually have to do it on your own. Practice is necessary to becoming successful in many professions; and trading is one of them!
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.
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. This also lead to higher volatility in many markets mixed with a lot of uncertainty and crazy market moves.
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.
We offer you 6 months of Ambush Signals for just $499. That’s a saving of $215, giving you almost two months of Ambush Signals for free. As we usually only offer monthly or 3-months subscriptions, this is a very special offer!
These 6 months will allow you to get to know Ambush Signals without too much stress or pressure and to follow it for a long enough time period that it simply won’t that much if you’re lucky and start on Ambush’s best trading month ever or not.
Don’t miss out on this and get your 6 months of Ambush Signals for $499 today!
Now many of you already have been following Ambush for years now and so you’ve been asking for a long-term subscribers bargain. Get a whole yearof Ambush Signals for$799. That’s a whopping $629 off the regular yearly subscription price, giving you over five months for free!
If you’d prefer to rather generate the signals on your own and want to know the exact trading rules of Ambush, you want the Ambush eBook. We also have a very special offer for you then:
Coupon Code for $500 off:
Ambush eBook: use during check out "ambush500“ to get the Ambush eBook $500 off, for $1,299 instead of $1,799.
All special offers are valid only until December. So hurry up and don’t miss out!
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.
Hey Joe! I was looking for some clue as to what to do with the USD/CHF Forex chart. I tried looking around for comments and found this: “The bearish move in USD/CHF is stretched, and so far on the day we’re seeing a bit of near-term resistance develop at that prior two-year low around .9257. Traders should be very careful of looking at short-side continuation strategy on a Friday ahead of an extended holiday weekend out of the United States. We look at a couple of deeper resistance levels below that could be usable for next week.”
Well, I really am not into predicting where markets will go long or short term. The only thing I see for certain from the point of view of day, or short-term trading would have been to buy the high of the reversal bar that made the recent low on the chart (0.9188). My buy order would have been at 0.9288 for an expected follow-through to the reversal bar. I would have been out with my objective and done with the trade in the same day as my entry. If I were a short-term trader, it would have been somewhat of a sweat to hold overnight because prices finished only 3 ticks higher than my entry. Tough decision on that one. However, holding over would have had its reward over the next couple of days.
Have you ever made a dumb mistake? Perhaps you knew you should have used a protective stop before leaving for two days to take your children on a road trip. You may have thought, "I'll stop off at an Internet café and monitor the trade." But it didn't happen. You got wrapped up taking care of your children or worrying about traffic, and you didn't get around to looking at the market. It fell hard and you lost more than you had planned. In hindsight, you probably thought, "I knew it would happen, but I just didn't care." For some traders, it's the little things that knock them off balance: the argument they had with their spouse, or staying up too late visiting with friends the night before a significant trading day. Whatever they are, these little things can make you feel tired and on edge. Suddenly, you make trading errors that would not have made sense in a more rational state of mind.
How do you prevent little things from getting the better of you? One way is to keep a diary of your thoughts and emotions during the trading day. For example, on the day of making a trade, you might write down the events in your personal life that happened before the trade and how you felt about these events: "I had a dinner at my neighbor's house and we lost track of time. We talked about interest rates and how the markets were down for the second straight week. I was a little worried about what might happen the next day. I didn't sleep well. I woke up tired the next day. And then, my spouse forgot some important papers at home and I had to fax them. It didn't seem like a big deal at the time, but I guess I was angry that I had to take time out of my busy schedule. I was tired and a little frustrated. In the back of my mind, I felt that I hadn't been performing at my best. I guess I really wasn't looking forward to putting on a trade that day. My heart wasn't in it. I tried to follow my trading plan but I did not succeed.
In this diary entry, you can see that little things were the culprits of a losing trade. The trader was not in an optimal state of mind. That can happen to traders. They can just have a bad day. A bunch of little things come together to make a big problem, and trading plans are ruined. How does a diary entry help? By keeping a description of your trades, even if you don't log all of them, you can look for patterns that interfered with an optimal state of mind. In this case, staying up too late and feeling frustrated by having to do something the trader didn't want to do put the trader in mindset that was not conducive to trading. A trader may find that specific events predispose a bad mood or feelings of frustration. For this trader it was not getting a sound night's sleep and dealing with interpersonal hassles. For other traders, it may be missing a day at the gym or hearing bad news about family and friends. Whatever these events are, it is useful to identify the specific events that mess up your trading plan.
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ALL EBOOKS 30% OFF Coupon Code: boo30
expires 11/12/2018
On 25th October 2018 we gave our Instant Income Guaranteed subscribers the following trade on Xilinx Inc (XLNX). Price insurance could be sold as follows:
On 29th October 2018, we sold to open XLNX Dec 21 2018 62.5P @ 0.61, with 52 days until expiration and our short strike about 21% below price action, making the trade very safe.
On 31st October 2018, we bought to close XLNX Dec 21 2018 62.5P @ 0.30, after only 2 days in the trade for quick premium compounding.
Profit: 31$ per option
Margin: 1250$
Return on Margin annualized: 452.60%
Philippe
Receive daily trade recommendations - we do the research for you.
Almost anyone who wants to succeed needs to ask themselves certain questions before beginning to trade. Essentially, it is a matter of counting the cost BEFORE, not after you decide you want to pursue trading as a serious part of your life.
What time period trader are you? How long do you feel comfortable holding a trade and how such financial risk can you comfortably assume on a one contract basis? How much money would you need to lose before you quit trading? How much would you need to win to quit? You should know the answers to these important questions before trading, and review them frequently. Your money management skills are the most important tools you have to trade the markets. With good risk averse money management skills, and even a mediocre trading approach, you will be successful. With a great trading approach and poor money management skills, you will lose money. Remember, a winner will find a way to win with a losing trading system and a loser finds a way to lose with a winning trading system. No man with a failed home life truly achieves any success.
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.
Marco Mayer's Ambush Signals is performing well so his next article will offer YOU big savings. Until then, watch his video to learn how his trading method works.
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!
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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.
I believe that the precipitous fall in just about any futures market is the result of huge manipulation by governments. Conversely, I believe the incredible rise in the price of crude oil was also market manipulation — but not entirely. A good part of the rise in crude oil prices was due to the buy and hold strategies of commodity index funds. Commodity index funds are long-only funds, and they buy and hold commodities as an asset class. Of course, they got their assets kicked and their panicked selling has caused a lot of the steep decline visible on the weekly chart.
We all know that what goes up, must come down (usually). It is also known that markets fall much faster than they rise. We have seen a lot of that lately, as well.
As I was looking through my charts, I couldn't help but notice a perfect illustration of prices falling much faster than they had risen.
It took 5 weeks for crude oil prices to reach the recent high. It took only 2 weeks for prices to give it all back.
Have you ever had a bad day and wanted to stand aside until the feeling passed? Sometimes it is a good idea. It may be necessary to take a break, relax, contemplate, and refocus on the task at hand. The winning trader trades freely and effortlessly and it is vital to trade with such a mindset. Traders are similar to star athletes who perform at their best, or musicians who are virtuosos. What these people have in common is that they can focus their attention on the task at hand; inadequacies, conflicts, or current life stressors do not easily distract them. The more you can remove stress and anxiety in your life, the more easily you can trade effortlessly with a focused, concerted manner. Some of the conditions you need to address are unconscious and involve a certain amount of reflection, but other conditions are just a matter of the right attitude. A winning approach to trading is often just a matter of approaching trading by following some basic guidelines.
A key guideline is to think in probabilities. Don’t focus on the outcome of a single trade. Think optimistically about the bigger picture. You may lose on a single trade, but if you are trading with sound trading strategies, you will come out ahead across a series of trades. It's this long-term perspective you need to focus on, not the short-term transitory outcomes. Remember that your overall success is the bottom line. You must strategically execute trade after trade in a calm and logical manner to make the law of averages work in your favor.
It's also vital to control your risk. Successful traders risk only a small percentage of their trading capital on a single trade, for example. Limiting the risk on a single trade further relieves some of the pressure; you are less likely to feel that every trade must pay off big. Trading a detailed trading plan is also important. When you know what you are going to do and when you are going to do it, you'll feel more in control. If you leave parts of your trading plan unspecified, you'll feel a sense of uneasiness. And in all likelihood, you'll not be able to follow your plan easily. Your discipline will falter. It's essential that you plan out when to enter and when to exit. Once you have a clear idea of when you'll decide to enter a trade and what signals indicate you should exit, you will be able to focus more easily on monitoring the trade and taking decisive action.
There's also a psychological aspect to trading like a winner, and sometimes it's important to just remember some common human tendencies to think "irrationally." For example, there's a human need to avoid loss and this need is often manifested in the need to be right. But don’t be afraid to admit you are wrong. And don't think that you must capitalize on every opportunity to make a profit. These expectations are so high that they can be cause fear and anxiety. When you hold such high expectations for your performance, you place too much pressure on yourself, and it interferes with your train of thought. By trading under the right mental conditions, you stay calm and trade more profitably.
On 19th October 2016, we gave our Instant Income Guaranteed subscribers a trade for CLF (Cleveland-Cliffs Inc.).
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 20th October 2016, we entered the trade for an average credit of 2.77 (or 8.31 = 831$ for 3 positions)
on 10th February 2017, we closed one third of our long position
on 9th March 2017, we bought to close all our short position
on 24th September 2018, we closed the second third of our long position
on 19th October 2018, we closed the last third of our long position
Profit: 1158.90$
Margin: 138$
Average Short Strike: 6.90$
Return on Margin annualized: 419.89%
Return on Principle annualized: 83.98%
We stayed 730 days in the trade, but the annualized returns were on the high side and all we had to do was to maximize our profits along the way, by being patient.
This was a low maintenance, low stress trade with lots of upside potential.
Philippe
Receive daily trade recommendations - we do the research for you.
This week, we're looking at ZSF19 – ZWZ18: long January 2096 Soybeans and short December 2018 Wheat (CBOT on Globex).
Today we consider a Grain inter-market spread: long January 2096 Soybeans and short December 2018 Wheat (CBOT on Globex). After trading mainly sideways in August and September with resistance at approx. 350 the spread moved higher in October. Will the former resistance level at 350 become support? As long as the level holds, there is a good chance the spread will continue its movement to the upside in November. Traders with smaller account might want to use the Mini-Sized contracts instead of the normal futures contracts.
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.
One of the questions every trader has to think about at some point is, how much of my account should I risk per trade? A percentage? If so, what percentage?
I’d love to have the right answer in my pocket for you, like "exactly 1.25% per trade/market and no more than 5% at the same time," but unfortunately, read more....
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.
