- Short Term Trading
- Futures
Edition 745 - September 21, 2018
Use coupon code Ambush30 to receive 30% off
Marco Mayer's Ambush Trading Method eBook!
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Hogs and Cattle
Four primary building blocks of Midwestern US agriculture are corn, soybeans, hogs, and cattle. But as winter draws to a close, how do hogs and cattle interact?
Because feed is both a primary and a variable cost of production, all livestock producers want to feed as many animals as possible when feed is most plentiful and therefore (usually) least expensive. So, the number of cattle on feed reaches a seasonal peak during and immediately after corn harvest in October/November. Similarly, even though hog production is now more concentrated in large commercial facilities that operate more steadily year round, those facilities tend to be as full as possible at harvest.
But hogs require less time to reach market weight. So, slaughter weights soar in October and marketing traditionally peaks at the end of corn harvest. Slaughter then begins a slow but steady six-month decline. But with retail pork demand greatest in July/August, the industry accumulates inventory during that seasonal decline in numbers. Steadily declining production and strong demand has tended to drive prices for summer hogs higher into April/May. In fact, July Hogs typically close higher in the 3rd week of April than on the last week of February.
In contrast, feeder cattle normally require four to five months after placement to reach market weight. Cattle placed in feedlots September-November will typically be ready for market January-April. But cattle in outdoor feedlots tend to gain weight more slowly during the cold of winter. That means slaughter more often remains moderate until early April — when it surges, only to peak in May/June. With beef supplies large after June and retail beef consumption lower during the heat of summer, cattle prices can suffer into spring. In fact, August cattle usually close lower at the end of March than at the end of February.
The net effect has been for summer-delivery hogs to outperform summer-delivery cattle in late winter and into spring. For example, the Long August Hogs/Short August Cattle spread has closed more favorably toward hogs in the 3rd week of April than on the last week of February more than 80% of the time. So, this is a high percentage winning trade.
The normal tendency for this spread has been to modestly favor hogs over cattle from December through January before leveling off for a few weeks in preparation for another surge in favor of hogs.
In fact, as I write this on February 7, the move may already be happening.
© 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.
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Easy Trading
Throughout the day you make everyday decisions that mean little to you. You drive your kids to school and along the way, you make a host of decisions about which route to take, where to turn, or when to stop off for gas. Each decision is made with little thought. Later in the day, you may decide to stop off at the supermarket. You decide what to buy for dinner and how much you will spend. Do you obsess over these everyday decisions? You probably don't. Why should you? What's the big deal? The implications of the decisions are almost nil. But tell that to someone with obsessive-compulsive disorder. They have a different perspective regarding the significance of such decisions. Even minor insignificant everyday decisions are a big deal to individuals with such an ailment. Aren't you glad that you don't have obsessive compulsive disorder? If you are a novice trader that has trouble making trading decisions a seasoned trader may think you have a kind of obsessive compulsive disposition.
Traders can often take the decisions they make during the trading day too seriously. It's natural. When your money is on the line, you can't help but worry about losing it, and you want to protect it, even if it means obsessing over minor details or reacting with extreme emotions. Some people even personify the markets by viewing a trading decision with the same emotional intensity as they do with their interpersonal relationships. In "Trading in the Zone," for example, Mark Douglas points out that traders often equate losses in the markets with their parents punishing them for breaking rules. When the markets are viewed in this way, losses take on a great personal significance. But it doesn't help to make such a big deal of things.
It's much better to take a more detached, objective approach. How can you do it? First, don't think about, or obsess about, the outcome of a single trade. Think of the bigger picture. You may lose on a single trade, but across a series of trades you will come out ahead, if you have a trading strategy that has a high probability of success. Successful traders plan on executing many trades, rather than just a few key significant ones. As they trade, they know that not all trades need to be winners in order to increase the equity in their accounts. It's your success overall that counts. Keeping this fact in mind takes some of the pressure off. Second, it is vital to use proper risk management. Successful traders risk only a small percentage of their trading capital on a single trade. Limiting the risk on a single trade further relieves some of the pressure to feel that every trade needs to be a winner, and thus, some of the personal significance is reduced.
There's no need to treat each a trade with great personal significance. By limiting the amount of capital you risk on a trade, the actual consequences of the trade are limited, so what's there to worry about? You might as well trade free and easy.
© 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.
by Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Trading Idea: Instant Income Guaranteed
CF Trade
On 30th March 2017, we gave our Instant Income Guaranteed subscribers a trade for CF (CF Industries Holdings Inc.), which was showing accumulation on a pullback on the weekly chart.
We entered a "complex position", entered for a net credit (still working with Others People Money (OPM), i.e. other people's money, as usual), but with unlimited upside potential.
-
On 30th and 31st March 2017, we entered the trade for an average credit of 6.275$ (or 18.825 for 3 positions)
-
On 2nd November 2017, we closed one third of our long position
-
On 5th January 2018, we bought to close all our short position
-
On 2nd August 2018, we closed the second third ofour long position
-
On 11th September 2018, we closed the last third of our long position
Profit: 4353$
Margin: 2148$
Average Short Strike: 107.37$
Return on Margin annualized: 139.55%
Return on Principle annualized: 27.91%
We stayed 530 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.
♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
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.
by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
Trading Article: Being Flexible
By being flexible I mean that over time, your trading philosophy will undergo changes. These changes are brought about because of external events (economic considerations, natural disasters, political events, etc.), and because of internal events, usually my own mistakes.
My views change as economic, political, and technological changes occur both on and now off our planet. My views change as I see the market change. It is imperative that I be willing to change my thoughts and actions to meet new conditions. So, I am always looking to adapt my trading to the market conditions. Example: In recent years, markets failed to trend as long and as far as they used to. These days, primarily because of computerized trading, markets tend to swing between perceived over and under valuation. If I hadn’t adapted to this reality, I would long ago have lost my money and probably would no longer be trading.
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.
Click Here for Valuable Information about Traders Notebook
© 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.
by Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Ambush Traders keep on profiting big time from stock market uncertainty!
The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Russell 2000 mini Future (RTY) traded at the CME, 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!
Many of you might remember that back in July we talked about the uncertainty in the stock markets and how well that worked out for Ambush Traders. Since then about two months have passed and guess what, not too much changed! After the Russell 2000 tried to breakout of its trading range, it’s now back inside it and is trading at about the same price as it has been two months ago. At the same time Ambush keeps on hitting those market turning points that are driving other stock market traders crazy…
Here’s the result of all of the trades shown on the chart, trading one Russell 2000 mini (RTY) contract, including $10 commissions per trade:
Yes, that’s a profit of $4320 with a profit factor of 2.00!
Let’s face it, you don’t want to be on the one caught on the other side of these trades. Also if you’re actively day trading by getting in and out of the market all day long, honestly ask yourself if that’s worth your time? And are you actually doing better than this? With Ambush you’re day trading without even having to be there during the day!
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 customize what markets you want to see and has a position sizing tool implemented to automatically adjust the positions to your risk preferences. Learn More about Ambush Signals.
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 currently have a special running for the eBook. You can get it 30% off, that’s over $500! Simply use the coupon-code "Ambush30" at the checkout.
Did you check out Ambush's Performance Page? For over 10 years, Ambush Trading Method is one of the longest standing and exceptional trading system in markets like equity indices, currencies, bonds and commodities.
Use coupon code Ambush30 to receive 30% off Marco Mayer's eBook!
I want to hear from you! Send me an email asking questions about the Ambush Trading Method., This email address is being protected from spambots. You need JavaScript enabled to view it.. It will be a good fit for you!
Happy Trading!
Marco
This promotion expires September 30th.
© 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.
Check out our Blog!
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.
© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.
- Short Term Trading
- Futures
Edition 744 - September 14, 2018
Scroll down to check out Marco Mayer's latest update!
A profit of $4,320 with a profit factor of 2.00!
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: I Love Currency Spreads
Hey Joe! I live in Australia, but I need to hedge against a rising yen. I’ve been long A$ futures since mid-2016 and recently, the A$ has dropped quite a bit. What do you think?
I try to not have an opinion in situations like these. Thinking results in your opinion, which is too often not correct. Some trading decisions are easier based upon trading what you see on a longer term chart.
It was from June 30 of 2016 until recently that the Australian dollar (A$) has trended upwards against the Japanese yen.
However, in February 2018, both markets began to drop against the US dollar on the daily price chart.
Looking at the monthly chart you see that the A$ began building a base in late June, 2016 and the spread line broke out of that base in December, 2016. The A$ trended upward against the yen for much of the following months.
But in February, 2018, had you looked only at the daily chart of the A$ you might have thought the A$ is going down against the yen. No, it was going down against the dollar.
Looking at the spread between the two on the monthly charts, you would have seen that the trend in the spread had not really changed. As of the date this was written, the spread hadn’t even reached the trend line. There have been ample opportunities to enter long AUD/JPY in Forex, or as a currency spread in the futures markets.
Charts, unlike indicators, never lie. The Law of Charts teaches us to trade what we see. Long-term charts, even long-term spread charts can be used to help us to trade what we see, along with being aware of what is taking place in the world around us.
© 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.
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Are You Worried?
After reading the financial page on Wednesday night, Jim thought, "How could anyone invest in the markets and get a sound night's sleep?" After you saw the major indexes drop on Wednesday, you might have thought the same thing. But as a seasoned investor or trader, you realize that such corrections are commonplace and you've learned to take them in stride. You don't worry about it and know that in the long run, you'll come out ahead. Not everyone is so lucky, however. Some people just can't stop worrying. They look at their portfolio every day, and can't stand to see it lose value, even if it is miniscule and just for a day. They toss and turn all night. Sometimes they even close out positions because they just can't calm down while their money is in play. Unfortunately, some investors worry so much that they just cannot trade efficiently. Other nervous investors just give up. Do you ever get too stressed out while trading? If you are an extreme worrier, perhaps you want to learn to day trade, or just the opposite, learn to trade long term. There are advantages to long-term trading.
Most investors are anxious because they look at the performance of the markets every day and worry about how the natural, transitory ebb and flow of markets may spell doom. By emphasizing the long term nature of trading a worried trader can calm down. Such traders can more easily tell themselves, "Who cares how my positions are doing today? In the long run, over a few weeks or months, I'll come out ahead." That said, some investors are so prone to worry that they cannot relax. They are always thinking of the worst case scenario. In the back of their mind, they truly believe, "I'm going to lose all my money." That's were a stop-loss system can help matters. By using a protective stop set to keep a loss at a reasonable minimum, you'll be able to closely look at the worst-case scenario, realize that the potential loss is minimized, and learn to accept it.
There are other helpful ways to stop worrying. First, you should write down your profit objectives for each trade and keep them nearby. By focusing on your plan, you will be able to stay on target, and when you see how well you are progressing toward you goal, you will feel better. Second, cut back on how often you look at your trades, read the financial section of the newspaper, or watch television coverage of the markets. Looking at how well the markets are doing is merely going to make you worry about how well your trades are doing. If you avoid looking, you'll feel better.
If you are a worrier, trading can be something to fear rather than an activity to enjoy. The more you worry, the higher your potential for losses. By taking precautions, you can stop worrying, relax, and take home the profits.
© 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.
by Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Trading Idea: Instant Income Guaranteed
THO Trade
On 12th Jul 2018 we gave our Instant Income Guaranteed subscribers the following trade on Thor Industries Inc. (THO). Price insurance could be sold as follows:
- On 13th Jul 2018, we sold to open THO Aug 17 2018 85P @ 0.70 , with 34 days until expiration and our short strike about 15% below price action.
- On 3rd Aug 2018, we bought to close THO Aug 17 2018 85P @ 0.30, after 18 days in the trade .
The underlying stock does not need to go straight up right away for us to profit from price insurance selling.
Profit: 40$ per option
Margin: 1700$
Return on Margin annualized: 47.71%
Philippe
Receive daily trade recommendations - we do the research for you.
♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
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.
by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
Trading Idea
This week, we're looking at HEN19 – HEM19: long July 2019 and short June 2019 Lean Hogs (CME at Globex).
Today we consider a Lean Hogs calendar spread: long July 2019 and short June 2019 Lean Hogs (CME at Globex). This spread has been trading sideways for several weeks in a range between approx. 0.000 and -.500. There is still some time left until the optimized seasonal entry on 09/21 with a possible pull-back to the -.500 level. If not filled, look for a different entry around the 21st of September. Please Note: the exchange traded spread is Lean Hogs June – July and therefore reverse to the one above (the exchange traded spread has to be sold)! Please adjust the entry levels according!
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.
Click Here for Valuable Information about Traders Notebook
© 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.
by Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Ambush Traders keep on profiting big time from stock market uncertainty!
The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Russell 2000 mini Future (RTY) traded at the CME, 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!
Many of you might remember that back in July we talked about the uncertainty in the stock markets and how well that worked out for Ambush Traders. Since then about two months have passed and guess what, not too much changed! After the Russell 2000 tried to breakout of its trading range, it’s now back inside it and is trading at about the same price as it has been two months ago. At the same time Ambush keeps on hitting those market turning points that are driving other stock market traders crazy…
Here’s the result of all of the trades shown on the chart, trading one Russell 2000 mini (RTY) contract, including $10 commissions per trade:
Yes, that’s a profit of $4320 with a profit factor of 2.00!
Let’s face it, you don’t want to be on the one caught on the other side of these trades. Also if you’re actively day trading by getting in and out of the market all day long, honestly ask yourself if that’s worth your time? And are you actually doing better than this? With Ambush you’re day trading without even having to be there during the day!
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 customize what markets you want to see and has a position sizing tool implemented to automatically adjust the positions to your risk preferences. Learn More about Ambush Signals.
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 currently have a special running for the eBook. You can get it 30% off, that’s over $500! Simply use the coupon-code "Ambush30" at the checkout.
Did you check out Ambush's Performance Page? For over 10 years, Ambush Trading Method is one of the longest standing and exceptional trading system in markets like equity indices, currencies, bonds and commodities.
Use coupon code Ambush30 to receive 30% off Marco Mayer's eBook!
I want to hear from you! Send me an email asking questions about the Ambush Trading Method., This email address is being protected from spambots. You need JavaScript enabled to view it.. It will be a good fit for you!
Happy Trading!
Marco
This promotion expires September 30th.
© 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.
Check out our Blog!
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.
© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.
- Short Term Trading
- Futures
Edition 743 - September 7, 2018
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Lesson from the Past
"A chart is a chart, is a chart." If I kept count, I would guess this is the ten thousandth time I have spoken or written those words.
The chart I am showing you today presents a comparison between euro fx (the euro as traded in the futures market) and EUR/USD (the euro as traded in the forex markets). Notice the plural, "markets." There is no set single price for the euro among all of the banks that trade it. This is one of the differences between futures and forex. It is called transparency. In futures everyone sees the same price at the same time, give or take a millisecond. In forex, you see the price at the bank or banks where your broker places your order. Some brokers have a single-bank feed, and some have a blended feed. In any event, what you see is what you get, and it is what you have to trade. "Trade what you see" has been my motto for all of my trading life. After all, what else is there?
I have captured 3 screens simultaneously, so that you can see what I mean by a chart being a chart, and at the same time show you that there is no real transparency in forex prices.
The screen at the top is euro fx in the futures. The next screen down represents EUR/USD as presented by the GTIS data feed. Notice the price, 1.5003. The bottom inset screen is EUR/USD as presented by the FXCM data feed. There we see the price as 1.50024. To get an idea of what the price is on the GTIS data feed, we will have to add a digit. I will make a guess at 1.50030, but that is only a guess. For all I know, it could be 1.50039, or 1.50034, or something else.
So a trader using the GTIS data feed is seeing a different price from that of the trader viewing the FXCM data feed, whereas everyone viewing the futures chart sees 1.50010, no matter where on Earth they happen to be.
If you look closely at the charts, you will see that they look like triplets. There is very little difference in the way they look.
Both forex and futures represent a ratio spread, i.e., the euro divided by the dollar. At the time these charts were created – it took approximately 1.5 U.S. dollars to buy one euro. That made it expensive for U.S. citizens to travel to Europe, but easy for Europeans to travel to the U.S.
Here is another difference. Let's say I wanted to be long the yen and short the euro. Using forex, I would simply sell EUR/JPY – a ratio spread.
However, if I wanted to do that in the futures, I would have to buy the yen futures and sell the euro futures – two separate trades. Since all of the futures are denominated in U.S. dollars, the price I would see for the spread would be in dollars – a fixed value in terms of dollars, or $12.50/tick (the minimum fluctuation that prices can move). However, in forex the minimum fluctuation prices can move is called a pip, and the value of a pip can vary. Unlike a futures tick, a pip is not fixed in dollars.
There is one other item I will point out. When I chart the spread long yen, short euro, I can subtract the euro from the yen and see a differential spread, or I can divide the yen by the euro and see a ratio spread. So I can view the spread either way I choose, while still being long yen and short euro. The ratio spread yen/euro would approximate the spread EUR/JPY. The differential spread yen-eur would give me a different, but similar looking view.
All of the charts below are 60-minute. Have fun:
© 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.
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Stay Calm
Charles is on edge. He isn't extremely uptight but he isn't completely calm either. He is just a little fidgety and it's getting to him. He is having a little trouble concentrating. He's reading charts incorrectly and he is having trouble outlining a trading plan. He can't figure out where to place his stops, where to enter or where to exit. Can you relate to Charles’ plight? There are times when you just can't calm down. Your physiology is elevated and you are restless and on edge. It's natural and understandable, though. When your money is on the line and you are fighting for your livelihood, you can't help but feel a little uneasy. There's a lot you can do to calm down in the midst of a storm of chaos.
Sometimes we get flustered and upset without our conscious awareness. It seems to have come out of the blue. There was probably something that started it, however. Maybe we remembered a set of past losing trades earlier in the day, or saw a media report on a stock we traded last year and lost. However, it happens, we end up on edge. How it happens may not matter in the end. All you know is that your physiology is elevated and you are ready to overreact to even a minor setback. What do you do at this point? You don't have to mull over the reasons why you are agitated. You can take decisive action to calm down.
Your mind and body are closely linked. When your body is energized, you look at your physiology and try to interpret it. Sometimes you feel hyped up, and rather than interpret your physiology as excitement, you may label it as fear, uncertainty and anxiety. The way you think about dictates how you feel about your physiology. If you feel fearful, it is because you are looking at your physiology and thinking that something bad is going to happen and you are not sure what you will do. To change your physiology, you have to change your thinking. When you are worked up, you can use it to your advantage. Rather than feel in a state of panic, you can reinterpret your high agitated energy level as excitement and start feeling enthusiastic about what you might want to do next as a trader. It may also be useful to cultivate a carefree attitude. You might think, "It doesn't matter what happens. I'm going to just do my best and pat myself on the back for whatever I accomplish.
It's easy to get a little uptight while trading, but it's all a matter of perspective. If you feel on edge, tell yourself encouraging thoughts to turn things around. By cultivating a winning attitude, you can feel calm during the storm and take home huge profits.
© 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.
by Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Trading Example: Instant Income Guaranteed
ATVI Trade
On 22nd Aug 2018 we gave our Instant Income Guaranteed subscribers the following trade on Activision Blizzard Inc. (ATVI). Price insurance could be sold as follows:
- On 23rd Aug 2018, we sold to open ATVI Oct 19 2018 62.5P @ 0.55 , with 56 days until expiration and our short strike about 13% below price action.
- On 29th Aug 2018, we bought to close ATVI Oct 19 2018 62.5P @ 0.23, after 6 days in the trade for quick premium compounding.
JBL went mostly sideways after our entry but we could still exit the trade fairly quickly thanks to time decay.
Profit: 32$ per option
Margin: 1250$
Return on Margin annualized: 155.73%
Philippe
Receive daily trade recommendations - we do the research for you.
♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
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.
by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
Trading Article: Sometimes Others Get to Play and You Don’t
Sometimes in softball games, as a kid, they handed out the bats, balls and gloves, and there weren't enough to go around – so you had to sit it out. You had to sit on the bench and watch.
The same thing happens in trading. Sometimes you don't get to participate.
You must get used to the idea that sometimes you will sit in front of your charts for days or weeks, and nothing at all will happen. Others will have all the fun. There won't be enough bats and balls to go around. You will simply be warming the bench – watching.
In trading, you must be comfortable with this – welcome it. Make peace with this idea. Cross your arms and sit back. Wait for YOUR trades and setups, and don't get irritated by other traders. You cannot be in every trade. If you don't get your entry signal, there is nothing to feel sorry about if you miss a profitable trade. Sometimes it is just not your trade; others get to play and you do not!
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.
Click Here for Valuable Information about Traders Notebook
© 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.
by Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Ambush hits new all-time equity highs in 2018!
Did you check out Ambush's latest trade example and Performance Page?
Ambush Trading Method is one of the longest standing and exceptional trading system, for over 10 years! Marco Mayer personally reviews his system annually to adapt it to the ever changing market conditions and his most recent change was in July of 2015. The chart shows that Ambush kept on performing as expected since live trading started. Those of you who have tried and followed other trading systems, know how rare it is in the real world. Most systems (and traders) just implode once they “go live“. Not Ambush, it proves itself in a huge variety of markets like equity indices, currencies, bonds and commodities.
What happens when a trading system actually keeps doing well in the markets over many years after it’s "live" while almost all other systems fail? That's right, it becomes more valuable. Don't risk paying a higher premium for a trading system that proves itself going forward.
Use coupon code Ambush30 to receive 30% off Marco Mayer's eBook!
In 2019, my eBook may exceed $2,000. Did I read that right? Yes, you did! Take advantage of this savings to avoid paying a higher premium down the road. Purchase the Ambush eBook for 30% off, that’s a savings over $500 and gives you the opportunity to save money at the 2018 low, low price!
Use Coupon Code, Ambush30, during checkout to recieve 30% off my eBook!
I want to hear from you! Send me an email asking questions about the Ambush Trading Method., This email address is being protected from spambots. You need JavaScript enabled to view it.. It will be a good fit for you!
Happy Trading!
Marco
This promotion expires September 30th.
© 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.
Check out our Blog!
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.
© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.
- Short Term Trading
- Futures
Edition 742 - August 31, 2018
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Fibonacci Fallacy
For years I have been laughing about the Fibonacci ratios. Guess what? I'm still laughing. (I know I will make some enemies with this article.)
They are so predictable that you have to wonder why anyone wants to bother with them. But there are traders who care a lot about them, and they make a ton of money by trading them. Would you care to guess who that might be? [hint] It's not your average Fibonacci trader.
It is the market movers who make money from so-called Fib Nodes and the areas called "confluence." What a joke! But it is a sad joke for those unwary traders who are suckered into studying about the Fibonacci ratios.
Last Friday, I was working with a tutoring student, watching crude oil. There were some nasty economic reports and crude reacted violently, as did a number of markets.
Prices more or less raced to a double bottom as you see on the chart. I said: "Watch prices retrace to the 50% mark and then, when the Fib traders go short, watch the market movers take them to the cleaners.
Prices dropped from 69.96 (3-minute chart) to the double low 68.32. A 50% retracement would take prices to 69.14 (69.96+68.32)/2.
Prices moved up from the double bottom to 69.14, and quickly ticked 2 ticks above a 50% retracement of the down-leg. You can see that in the first chart below. I can just imagine the Fib traders who were filled at 69.16 thinking they were filled two ticks better than they ought to be. Oh happy day, what luck!
Then, take a look at what happened once the Fib traders were suckered into the market.
© 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.
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Self-Sabotage
Every time Dino gets ahead as a trader, he sabotages his efforts. It comes about in many ways. He may feel guilty for getting ahead, and so distraught over his success that he doesn't pay attention to market conditions. This leads to a few bad trades, wiping out a month's worth of profits in a day. Other times he may seemingly forget to stick with his trading plan, which results in a significant setback. Then there are those times when he gets so ambitious that he abandons risk limits and strives for a return on his trades that is impossible to realize. He ends up mounting huge losses. He can't figure out why he would allow such mistakes to happen. He knows better but seems powerless to prevent his unconscious need toward self-sabotage to get the better of him.
Not everybody has a need to sabotage his or her efforts. Some people feel they deserve success, work assiduously to achieve success, and relish every victory. But other people let deep-seated, unresolved conflicts sabotage their best efforts. In her book, "Self-Sabotage: How to Stop It and Soar to Success," Martha Baldwin outlines the profile of a self-saboteur. Do you fit the profile?
According to Baldwin, a self-saboteur is motivated by fear, sorrow, hurt, isolation, abandonment, and anger, which often arise from the belief that it is vital to please others at the expense of one's own personal needs. The message the self-saboteur heard as a child and still lives by as an adult is, "Don't be who you are." The self-saboteur is afraid of fighting against his or her parents' wishes that were to completely satisfy their needs at the expense of his or her own. The mission of the self-saboteur is to thwart all efforts at success and independence. By staying inept and dependent, the self-saboteur will never threaten his or her parents and remain an innocuous, non-threatening do-nothing. Parental messages remain with the self-saboteur throughout his or her life. Self-saboteurs allow a part of themselves to criticize them. A cynical, fearful voice takes over, especially during stressful times. Rather than spurning the person to take action and make things happen, the voice tells them, “You’re no good, you can’t do this. You’ll never be successful at anything.”
Trading is a tough business. You don't need to sabotage your efforts; the markets will do that for you. If you let your hidden motives for self-sabotage take over during critical moments of trading, you are bound to make trading errors. Don't let self-sabotaging tendencies get the better of you. Be aware of your tendencies to give yourself pessimistic messages. Deep down, you may think, "I can't really be a success, so I might as well not try." There are many ways to avoid trying your best. You can neglect disciplined action, such as failing to make and follow a trading plan, or forgetting to monitor a trade and failing to see that the market has moved against you. Even apparently active efforts to win can be manifestations of self-sabotage. For example, you may decide to make a covert plan to fail. You may think, "I'll raise my standards and trade on a larger scale." On the surface, this looks like a strong drive to succeed, and it may reflect ambition, but only if you have the skills to make it become reality.
Don't sabotage your efforts. Acknowledge your tendency to thwart your efforts, especially when you feel stressed out. The best antidote to self-sabotage is to set realistic goals. When you set realistic goals, you will accomplish them and feel good about what you have done. And with these feelings of accomplishment will come an optimistic view of the future. There's no reason to get a swelled head or to trade impulsively. If you set specific, realistic goals, you will trade like a winner and quell the self-saboteur that lurks deep in your psyche.
© 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.
by Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Trading Example: Instant Income Guaranteed
JBL Trade
On 13th Jul 2018 we gave our Instant Income Guaranteed subscribers the following trade on Jabil Circuit Inc. (JBL). Price insurance could be sold as follows:
- On 23rd Jul 2018, on a GTC order, we sold to open JBL Aug 31 2018 26P @ 0.20 , with 45 days until expiration and our short strike about 9% below price action.
- On 9th Aug 2018, we bought to close JBL Aug 31 2018 26P @ 0.05, after 17 days in the trade.
JBL went mostly sideways after our entry but we could still exit the trade fairly quickly thanks to time decay.
Profit: 15$ per option
Margin: 520$
Return on Margin annualized: 61.93%
Philippe
Receive daily trade recommendations - we do the research for you.
♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
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.
by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
Trading Enhancement – Mediation
As a professional trader, I try to enhance my trading on a daily basis. Learning how to trade is an ongoing process - a process that never stops. Those who know me or who have traded with me know that I am always looking for a simple and straightforward approach to trading. Yes, of course I am testing indicators, new chart patterns, new charting techniques, and anything else that is showing up on my desktop. But I have noticed that the main issue in trading is still “me”. The psychological aspect of trading is usually underestimated, especially by new traders.
During the next couple of weeks, I will present some ways of how I enhanced my own trading. Maybe you will like some or all of these ideas, and feel free to use them for yourself.
Meditation
Richard Wyckhoff wrote in his book Studies in Tape Reading: The tape reader evolves himself into an automaton which takes note of a situation, weighs it, decides upon a course, and gives an order. There is no quickening of the pulse, no nervousness, no hopes, no fears. The result produces neither elation nor depression. There is equanimity before, during, and after the trade.
It is crucial for a trader to be in a healthy state of mind during the trading session. I can tell you, it is not easy to stay at this high performance level all the time, especially after a few losing trades in a row. Meditation can help, and every trader should consider a meditation session on a daily basis. I am not talking about any religious meditation - I am talking about straightforward meditation to calm the mind.
Give it a try, and you will be surprised about how positively it will affect your trading!
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.
Click Here for Valuable Information about Traders Notebook
© 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.
by Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Use coupon code Ambush30 to receive 30% off Marco Mayer's eBook!
Check out Ambush's latest trade example and Performance Page!
Ambush hits new all-time equity highs in 2018!
Ambush Trading Method is one of the longest standing and exceptional trading system, for over 10 years! Marco Mayer personally reviews his system annually to adapt it to the ever changing market conditions and his most recent change was in July of 2015. The chart shows that Ambush kept on performing as expected since live trading started. Those of you who have tried and followed other trading systems, know how rare it is in the real world. Most systems (and traders) just implode once they “go live“. Not Ambush, it proves itself in a huge variety of markets like equity indices, currencies, bonds and commodities.
What happens when a trading system actually keeps doing well in the markets over many years after it’s "live" while almost all other systems fail? That's right, it becomes more valuable. Don't risk paying a higher premium for a trading system that proves itself going forward.
In 2019, my eBook may exceed $2,000. Did I read that right? Yes, you did! Take advantage of this savings to avoid paying a higher premium down the road. Purchase the Ambush eBook for 30% off, that’s a savings over $500 and gives you the opportunity to save money at the 2018 low, low price!
Use Coupon Code, Ambush30, during checkout to recieve 30% off my eBook!
I want to hear from you! Send me an email asking questions about the Ambush Trading Method., This email address is being protected from spambots. You need JavaScript enabled to view it.. It will be a good fit for you!
Happy Trading!
Marco
This promotion expires September 30th.
© 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.
Check out our Blog!
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.
© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.
- Short Term Trading
- Futures
Edition 741 - August 24, 2018
by Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Several traders reached out asking to extend this sale past the summer, so we listened!
Until the end of September, use coupon code Ambush30 during checkout to receive 30% off Marco Mayer's eBook!
Check out Ambush's latest trade example and Performance Page!
Ambush hits new all-time equity highs in 2018!
Ambush Trading Method is one of the longest standing and exceptional trading system, for over 10 years! Marco Mayer personally reviews his system annually to adapt it to the ever changing market conditions and his most recent change was in July of 2015. The chart shows that Ambush kept on performing as expected since live trading started. Those of you who have tried and followed other trading systems, know how rare it is in the real world. Most systems (and traders) just implode once they “go live“. Not Ambush, it proves itself in a huge variety of markets like equity indices, currencies, bonds and commodities.
What happens when a trading system actually keeps doing well in the markets over many years after it’s "live" while almost all other systems fail? That's right, it becomes more valuable. Don't risk paying a higher premium for a trading system that proves itself going forward.
In 2019, my eBook may exceed $2,000. Did I read that right? Yes, you did! Take advantage of this savings to avoid paying a higher premium down the road. Purchase the Ambush eBook for 30% off, that’s a savings over $500 and gives you the opportunity to save money at the 2018 low, low price!
Use Coupon Code, Ambush30, during checkout to recieve 30% off my eBook!
I want to hear from you! Send me an email asking questions about the Ambush Trading Method., This email address is being protected from spambots. You need JavaScript enabled to view it.. It will be a good fit for you!
Happy Trading!
Marco
This promotion expires Septmeber 30th.
© 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.
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Series Probability
So, you had a winning day. What now?
I am so happy that at age 14, when I made the very first trade of my life, I lost! I lost my whole $60 — wow did that ever hurt. Along with it went some of my self-image, but the pain made me think, and put a caution into me that has never left, although I still regularly goof. I have a physical and medical excuse, but I never excuse myself and determine to do better.
But what about the times you win? What do you do with the euphoria that comes with a win? How do you handle that?
I can tell you for certain, winning is the most dangerous time in a trader's life. When you win, you are just as apt to make stupid changes as you are when you lose.
When you have a couple of losses in a row, you begin casting around for what you can change to take away the pain. I know. I’ve done it. But when you win is when you have a great tendency to throw caution to the wind. You feel like “king of the mountain,” and when that happens, a tiny but deadly gland that medical science has never discovered kicks in.
I call it the greed gland, and it secretes a substance that has a profound effect on human behavior.
The glandular secretion causes you to want more — greed. Greed can never get enough, so you increase your position size. You become more daring, and you overtrade — too big and too often.
However, this strange glandular secretion affects some other things in your human nature. One of them is pride. Yes, when the greed gland kicks in, so does the pride hormone. And in much the same way that a proud peacock puffs up his tail feathers, you, too, become puffed up. You become vain, and you think:
A saving grace in trading is learning to take advantage of series probability, which allow for you to enjoy a series of wins, provided you have an edge.
Prior to 1984, not all software had OHLC charts. Some still showed only the high, low, and close, and ignored the open.
A series can occur in just about anything that is measurable. For example, you can find series on charts that are comprised of nothing more than values produced by a random number generator.
The high-low-close chart above is a chart of random coin flips, proving that even randomly flipping a coin can have a series of wins or a series of losses. It is also convincing evidence of why you cannot afford to be cocky, because the series of wins was soon offset by a huge series of losses. :-)
© 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.
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Dream Trade
When trading the markets, it's vital to stay grounded in reality. You can't get caught up in dreams. For instance, it may sound "easy" to people outside the profession to make money by trading Google, but there are a couple of real obstacles to taking home huge profits. First, risk should always be considered when making a trade, and while trying to manage risk, some traders would not want to take a certain trade. For example, 100 shares at $270 would cost $27,000. If you followed the guideline of risking only a small amount of capital on a single trade, such as 1-3%, you might want to stand aside on such a trade. The volatility may be too great and create too much risk, unless you have a large account. Other traders see diversification as essential for proper risk management. So even if the trade made a great deal of profit, in all likelihood, other trades in a portfolio may have lost money, creating less of a profit across a series of trades.
Getting caught up thinking about dream trades can be upsetting. At first you may realize that you are engaging in harmless fantasy, but at some point you may start believing that it's possible to make some of these dream trades. The mind has a way of thinking that fantasy is reality, but just because your mind can think the impossible can happen does not mean that dreams can become reality. It's better to realize that winning streaks go in cycles. You may run hot at times, but cold at other times. Occasionally, you may hit upon a big trade that makes up for months of losses, but you should not count on it.
It may be fun to dream of what might have been. If only we had a time machine to go back and make those trades that turned out to be huge winners, or a crystal ball to predict the next big trade, but in reality, trading is about working hard, making a series of trades, and patiently waiting for the profits to roll in. Profits don't always roll in when you expect them, but if you work diligently, they do roll in.
© 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.
by Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Trading Example: Instant Income Guaranteed
MRVL Trade
On 6th Jul 2018 we gave our Instant Income Guaranteed subscribers the following trade on Marvell Technology Group (MRVL). Price insurance could be sold as follows:
- On 17th Jul 2018, on a GTC order, we sold to open MRVL Aug 17 2018 19P @ 0.15 , with 30 days until expiration and our short strike about 12% below price action.
- On 6th Aug 2018, we bought to close MRVL Aug 17 2018 19P @ 0.05, after 20 days in the trade.
MRVL went mostly sideways after our entry but we could still exit the trade fairly quickly thanks to time decay.
Profit: 10$ per option
Margin: 380$
Return on Margin annualized: 48.03%
Philippe
Receive daily trade recommendations - we do the research for you.
♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
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.
by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
Trading Example: A True Passion for Trading
I believe that to be a truly successful trader you have to have a true passion for trading. This is probably true for any field of endeavor. I believe that the people who do best are not primarily motivated by fame, glory, respect, or status. They are driven by the pure love of the what they do. Winning traders, similarly, have strong interests in the markets, and this passion is the driving force that puts them at the top, year after year.
However, many wannabe traders come to the markets having deep-seated psychological problems and needs. For example: Needing money is not a good reason to take up trading. All too many novice traders show up at our doorstep having lost a job and wondering how they will be able to make a living. Many traders show up here with major ego problems making them overconfident, or just the opposite, with very little self-confidence, which causes them to fail.
Trading from a motive of “I have to make it as a trader” often leads to disastrous consequences.
When you have a true passion for trading, you will not stop trying until you finally succeed. You have to really love it. If you do, you will find ways to persist until you are on top.
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.
Click Here for Valuable Information about Traders Notebook
© 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.
Check out our Blog!
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.
© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.
