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Edition 739 - August 10, 2018
Over the last two weeks, over $7,500 in profitable trades! Scroll down to
Marco Mayer' s Ambush Trading Method, this deal you won't want to miss!.
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Spreads
Recently, during our Italian spread seminar, May 24-25 I gave two examples of observation spreads. With an observation spread you truly trade what you see—one market going up while the other goes down; or, one market going up while the other is moving sideways; or both markets going up or down, but one is moving much faster than the other.
In the Live Cattle-lean hogs trade shown below, cattle prices are rising, but hog prices remain in a sideways trading range.
In the soymeal-soybean trade above, prices in each leg of the spread are falling, but soybean prices are falling faster, and more steeply than soymeal prices.
In any event, if you stop staring at a day trading screen and look around you’ll see plenty of opportunities like the spreads above.
© 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: Perspective: Winners VS. Losers
We all want to feel like winners. Winning makes us feel on top of the world, as if we can do anything. But in the trading business, the bottom line is how much money you make in the end. As I’ve mentioned in past issues of Chart Scan, best way to monitor your performance is to use a win-loss ratio, but there are many different ways to calculate this statistic, and each have advantages and disadvantages.
The first issue to consider when calculating a win-loss ratio is to decide on a reference point to use for your calculation. It's up to you, and it depends on how many trades you make. If you only make 10 trades a year, it makes sense to use a year as your reference point. If you make 10 trades a day, in contrast, you may want to use a day as a reference point. Most people would probably use a week or a month. Specifically, the win-loss ratio would be based on all trades made in the reference point. For example, if you decided to use a month as your reference point, you would calculate the win-loss ratio based on all the trades you made in a month.
The second issue is to decide which formula to use to calculate the win-loss ratio. There are at least three ways. In the first way, traders compare the number of winning trades to the number of losing trades. The dollar amounts are ignored. For example, if you made 10 trades in a week, and 6 trades were winners and 4 trades were losers, you would divide winners (6 trades) by losers (4 trades), and end up with a value of 1.5. Values greater than 1 indicate that you are winning overall (based on a reference point of a week), whereas values less than 1 indicate that you are losing overall. Some trading experts criticize this approach because it is easy to distort this statistic. If you know, for example, that you have made 5 losers and 5 winners, you can make a few small winning trades that produced relatively little profits and make yourself come out as a winner. It is argued that because the dollar amount is not built into the ratio. it provides a biased picture.
A more formal approach, which is often used in the money management strategy developed by John Kelly, uses the average dollars won and lost across a series of trades in a reference point, such as a month. For example, if you made 20 winning trades and 80 losing trades in a month, you would calculate the mean dollars won across the 20 winning trades and the mean dollars lost across the 80 losing trades. Once you have the two averages, you would simply divide the average dollars won by the average dollars lost. Again, values greater than 1 indicate that you are winning overall, whereas values less than 1 indicate that you are losing overall (across the reference point). The advantage of this approach is that the actual dollars won or lost are taken into account. The disadvantage is that an average, or mean, may not provide an accurate view of how much money is won or lost.
The disadvantages of these two approaches have led us at Trading Educators to suggest using a modified version of the win-loss ratio. We suggest taking the total amount of money you won across a series of trades and divide it by the total amount you lost. For example, if you made 20 winning trades and won a total of $5000, and made 15 losing trades and lost a total of $4000, you would divide your wins by losses and end up with a value of 1.25. (It may also be useful to multiply this value by 100 to remove the decimal).
There is no one right way to trade, and there is no single correct way to calculate the win-loss ratio, but whatever you decide, it is useful to monitor your performance. By calculating a win-loss ratio, you remove some of the mystery and uncertainty in trading. You know where you stand, and you will be more aware of where you have been and can think more clearly about where you are going.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
by Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Trading Example: Instant Income Guaranteed
KEY Trade
On 19th Jul 2018 we gave our Instant Income Guaranteed subscribers the following trade on KeyCorp (KEY). Price insurance could be sold as follows:
- On 23rd Jul 2018, on a GTC order, we sold to open KEY Aug 31 2018 18.5P @ 0.15 , with 37 days until expiration and our short strike about 10% below price action.
- On 30th July 2018, we bought to close KEY Aug 31 2018 18.5P @ 0.05, after 7 days in the trade for quick premium compounding.
Profit: 10$ per option
Margin: 370$
Return on Margin annualized: 140.93%
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 Example: Traders Notebook
This week, we're looking at -ZLZ18+2xZLN19-ZLZ19 Butterfly Spread: short 1 December 2018, long 2 July 2019, short 1 December 2019 Soybean Oil (CBOT on Globex).
Today we consider a Soybean Oil Butterfly spread: short 1 December 2018, long 2 July 2019, short 1 December 2019 Soybean Oil. The spread looks a bit wild with many ups and downs but has found support around 0.6 several times and has been following nicely its seasonal pattern. As long as this level holds, the spread has a good chance to move higher. Traders have to “leg-in” into the spread by selling and buying each leg separately or by selling and buying the spreads involved (December 2018 – July 2019 and July 2019 – December 2019).
Do you want to see how we manage this trade and do you want to get detailed trading instructions every day?
Click here for additional information!
Did you miss our 50% off Summer Sale?
Use Coupon Code During Checkout
tn35
To Receive 35% off!
Hurry Sale Ends on the 24th!
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
In two weeks, Ambush Trading Method made over $7,500 in PROFITS!
Ambush Trading Method has a proven track record. The last few Chart Scan Newsletters have given you examples of winning trades and you can be in on them:
A SPECIAL DEAL IS COMING YOUR WAY!!
Be on the look out for next week's Chart Scan Newsletter, just for our subscribers!
Here is a recap of last week!
Ambush Traders keep on dominating the Natural Gas market
The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Natural Gas Future (NG) traded at the NYMEX, where Ambush Traders are having an amazing run for months now.
Ambush day trades on an end-of-day basis so there’s no need to even check the markets during the day.
As you might know, Natural Gas is one of the all time favorite markets for Ambush. And looking at the following chart it becomes clear why. It’s one of the least trendy markets out there. Like all markets it goes sideways most of the time but even when it trends it’s doing so in a slow manner. Just have a look on the chart and ask yourself what kind of trader you want to be. The one making money on the rare occasion of NG trending (blue arrows) or during the remaining 90% of the time (red boxes).
Here’s the result of all of the trades you can see on the chart, trading one NG contract, including $10 commissions per trade. Yes, that’s over $4620 trading just one contract with a winning rate of over 75% and a profit factor of over 4!
Don’t miss the next trade 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 generate signals on your own and want to know the exact trading rules of Ambush, purchase the Ambush eBook.
Happy Trading!
Marco
Feel free to email Marco with your trading questions, This email address is being protected from spambots. You need JavaScript enabled to view it..
© 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.
Edition 738 - August 3, 2018
Last week a $3,775 profit and this week a $4,620 profit, what?!?
Scroll down to Marco Mayer's trading article about Ambush Trading Method.
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Law of Charts in Depth
I would like to share answers to several questions from my students about the The Law of Charts free material and The Law of Charts In-Depth Webinar, and how to handle short term trading at daily bars when I am not a scalper.
Student #1. When is first tradeable opportunity to trade solo 123 High or Low? The pivot point, then 4 times / or 5 times / HH and HL? / or LH and LL / then two correction bars and TTE is possible? Two correction bars and TTE is possible? I am not sure what this student is asking. No matter that this is in congestion or trading range? Never trade TTE in congestion. However, if you have a TTE followed by a RH within the congestion, you can use TTE to get in early before the point of the RH is violated.
How long must be previous swing in order to allow to trade solo 123 formations in the direction of this swing ? / or opposite direction /? 1-2-3 must occur at the end of a trend or swing. There is no way to tell you “how long,” it is a matter of judgment based on what you see. In general, a trend is a series of higher highs and higher lows (opposite for a downtrend). A swing must be a leg that takes you beyond any consolidation.
Student #2. Where should you take profit from trading daily Reverse bar which goes in opposite direction to swing or trend ? When is no present RH
or 2 point? Should that be closest next Daily paper if there is room available/? Or at trading Reverse Bars is this not important? I would not take any reversal bar unless it is at the end of a trend or swing. If prices are in congestion, then the reversal bar must have its extreme point outside of the congestion. Be very careful about this.
Student #3. If I don't want be a scalper at daily bars. What is essential for taking profit? By scalping to take a quick profit after 7-10 pips, and then move Stop Loss to Break Even. This is a good plan. You have to experiment about which works best for you.
In the case of an hourly chart – If prices are in a 10 hour cluster would you take 30 pips /or more/ and time stop. Time frame has nothing to do with it. You want to be paid to trade. Take money as soon as you can—all of it or part of it.
But at daily bars when I am not a scalper ? Take some money off the table, and then set a trailing stop as you prefer. The main thing is to get paid to trade no matter what the time frame.
Is it most effective to let profits grow at least 30- 40 pips and then move SL at BE ? I cannot answer this. You must decide on what works best for you. There are no rules for how many pips you should try to take. Just stay within your account size and don’t overtrade. I don’t know of any effective number of pips. Deciding what works, is a combination of your money management, your trade management, and your experience.
Student #4. Is the best trading time - morning 8:00- 10:30 – Is it also important even if I don't want make a scalp trade? Always the U.S. morning is best. The first 90 minutes of trading are the most important time of the day. You must look at the volume to see when the most traders are usually in the market. I use a 30-minute chart to see the first 90 minutes. Usually, they will be at the essentially the same time every day, plus or minus 30 minutes.
© 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: Your Money or Your Ego?
Which would you be willing to part with first, your money or your self-esteem? If you are like most traders, you are likely to let your money go before your self-esteem.
Trading stories are full of traders who gladly fed losing trades to avoid admitting the fact that they made a mistake. They hoped against hope that a losing trade would turn around if they could merely wait long enough. In the end, it's better to cut your losses and to move on, but few traders do so. They lose more and more money. Why? The biggest reason is ego. They don't want to admit they were wrong. They don't want to feel like a loser.
A 2006 study showed how people are willing to lose money in order to protect their self-esteem. Participants played a game of chance that was similar to continuing to invest in a losing trade: they were told they could win a jackpot of $10 if they patiently played long enough by feeding the investment in 25-cent increments. Each participant was given $5 in quarters to play the investment game. They had the choice of continuing to put in quarter after quarter to keep an investment going or cutting their losses. In the experimental group, participants were threatened by being told that most people choke under pressure when playing the game and that if they were prone to crack under strain, they would have difficulty. A control group was not given this "ego threat." These researchers also looked at people's self-esteem to see if it would impact the amount of money participants lost. What did they find?
You might think that people with high self-esteem would handle a warning that they might choke under pressure better than people with low self-esteem, but they did not. One might also expect people with high self-esteem to perform better on the investment task than people with low self-esteem, but people with high self-esteem lost more money than people with low self-esteem. Why? People with high self-esteem tend to want to defend their ego. They want to preserve their self-esteem even if it means continuing to lose money on a game they can't win.
What is the lesson? Don't link your net worth to your self-worth. If you think you have value as a person because you make money on winning trades, you will believe that an outcome of a trade determines your self-worth. It does not, however. No matter how much you win or lose, you still have value as a person. If you remember this fact, you will be able to trade more rationally and objectively. But on the other hand, if you let your self-worth be defined by how well you do as a trader, you will be putting your self-esteem on the line with your money, and you will be likely to do anything to maintain your high self-esteem, even if it means losing money. So whatever you do, forget about making it personal. Trading is not personal. It is just business. If you keep your self-esteem out of the picture, you will trade more objectively, rationally, and profitably.
© 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
RDFN Trade
On 13th Jul 2018 we gave our Instant Income Guaranteed subscribers the following trade on Redfin Corporation (RDFN). Price insurance could be sold as follows:
- On 17th Jul 2018, we sold to open RDFN Aug 17 2018 20P @ 0.30 , with 30 days until expiration and our short strike about 15% below price action.
- On 23rd July 2018, we bought to close RDFN Aug 17 2018 20P @ 0.15, after 6 days in the trade for quick premium compounding.
Profit: 15$ per option
Margin: 400$
Return on Margin annualized: 228.13%
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: Overall Balance
Trading in itself is a thrilling activity, and many non-traders never have a chance to experience that level of excitement. However, as thrilling as it may be, it's not the only thing there is in life. In many ways trading is still quite one-dimensional. It doesn't have the richness and nuance of the larger life outside of trading.
In this regard, it's necessary to achieve an overall balance in our lives. There is little gained if we become expert traders, yet leave the rest of our lives in shambles. Eventually, something will begin to disintegrate in our trading as well.
It is always necessary to remember that there is another world out there beyond trading!
© 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
$4,620 PROFIT!
Ambush Traders keep on dominating the Natural Gas market
The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Natural Gas Future (NG) traded at the NYMEX, where Ambush Traders are having an amazing run for months now.
Ambush day trades on an end-of-day basis so there’s no need to even check the markets during the day.
As you might know, Natural Gas is one of the all time favorite markets for Ambush. And looking at the following chart it becomes clear why. It’s one of the least trendy markets out there. Like all markets it goes sideways most of the time but even when it trends it’s doing so in a slow manner. Just have a look on the chart and ask yourself what kind of trader you want to be. The one making money on the rare occasion of NG trending (blue arrows) or during the remaining 90% of the time (red boxes).
Here’s the result of all of the trades you can see on the chart, trading one NG contract, including $10 commissions per trade. Yes, that’s over $4620 trading just one contract with a winning rate of over 75% and a profit factor of over 4!
Don’t miss the next trade 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 generate signals on your own and want to know the exact trading rules of Ambush, purchase the Ambush eBook.
Happy Trading!
Marco
Feel free to email Marco with your trading questions, This email address is being protected from spambots. You need JavaScript enabled to view it..
© 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.
Edition 737 - July 27, 2018
Be sure to scroll down to Marco Mayer's article, $3,775 profit!
DON'T MISS OUT!
50% off Traders Notebook Subscription!
Use Coupon Code: andy50
OFFER EXPIRES JULY 31, 2018
Read what a current Traders Notebook subscriber has to say!
”The Traders Notebook authored by Andy Jordan based upon his experience and Joe Ross’s techniques is a premier daily advisory, with the what why and when of carefully selected futures trades and more.
I look forward to receiving the notice every night that a new Notebook is available with Outrights, Spreads and Options recommendations and some tidbits as well.
The presentation, reasoning and basis of each trade is explained in such a concise articulate way that you eagerly spend more time looking at the charts rather than trying to put together a drawn-out explanation. That is a most efficient teaching technique.
Additionally, Andy is not only a commensurate trader and teacher but also available for you, helping you with your questions and observations. He teaches you not to just place orders, but how to become a “trader”. I believe this is the genuine mission of Trading Educators and it is exemplified by TN.”
Frank M., July 16, 2018
by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
Traders Notebook - Summer Special - OFFER ENDS SOON!
Hi Traders,
Don't miss out on my summer special with Traders Notebook that offers you 50% off our regular subscription price! Take advantage of half the price with a 6-Month or 1-Year subscription with Traders Notebook, but the offer expires on July 31, 2018. Learn while you trade using Traders Notebook, benefit from the trading experiences that are provided to you with a personal touch that no other plan offers. Use coupon code andy50 during checkout and start receiving my trading notifications with guidance. Feel free to email me with questions, This email address is being protected from spambots. You need JavaScript enabled to view it., or check out the Traders Notebook Complete product page for more testimonials and product overview.
I look forward to trading alongside with you,
Andy Jordan
Coupon Code: andy50
Good through July 31st!
© 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 Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
TRADING EDUCATORS' TEASER!!
Andy Jordan's Live Trading Room is currently closed to the public, but will open just for YOU starting September of 2018! More updates will follow.
Listen up Traders Notebook subscribers, in August via email, you will receive special pricing, that's right! It is our way of thanking you for being a preferred Trading Educators' customer.
Check this out, traders!
Trading sample from the Live Trading Room on 07/19.
Long at 67.12 with an initial stop at 66.99 trading 2 contracts with an risk of $260 for both contracts.
Selling the first contract at 67.27 for a profit of $150 and the second contract at the target at 67.82 for a profit of $700.
Total profit of $850 or 3.3 times the risk.
Details on how to sign up will follow in upcoming Chart Scan Newsletter Editions!
Email Andy Jordan with any questions, This email address is being protected from spambots. You need JavaScript enabled to view it.!
© 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 Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Swiss Franc
Will the Swiss National Bank allow the franc to reach parity with the U.S. dollar?
In the past, every time the franc tried to equal the buck, the Swiss National Bank (SNB) intervened and bought or sold francs. Recently, I looked at the daily chart of the franc, and decided that we will probably see the franc reach parity against the dollar in spite of any actions by the SNB.
As long as the euro keeps rising, there is no problem for the Swiss if their currency rises. The Swiss are inextricably tied to the value of the euro. In general, the euro is the anti-dollar. When the dollar falls, the euro rises. The falling dollar rightfully scares the bejeebers out of a lot of investors, and they run to the franc for some sort of feeling of safety.
Of course, the franc is no longer backed by gold, so flight to the franc is a bit silly. The franc is not safer than the euro in many respects, and currently franc bank deposits are paying negative interest. The SNB cannot allow the franc to rise much against the euro because the economies of their major trading partners are all based on the euro, with Germany being the main importer of Swiss products.
What could stop the franc from reaching parity would be a dollar rally—a rally that many think is long overdue. A dollar rally will move the euro down, and the franc will almost surely have to follow.
© 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: Trading Preparations
Are you ready to tackle the markets at any time? Bring it on, right? It would be ideal if we were ready to trade at any given moment, but the human mind has its limits. You don't have an endless supply of energy. After a marathon stretch of trading, for example, you may not be able to tackle the markets in earnest. You may not be able to concentrate fully. You may be easily distracted, and while you are in a state of confusion, you are likely to make trading errors. It is necessary to prepare to trade. It is vital to get your mind ready to trade the markets.
Trading when you’re at your best, and at the right time requires the proper amount of challenge on the one hand, but a good match with your skills on the other. If a trading task is too hard, you will choke. But on the other hand, if you spend your entire trading life blandly fighting boredom, you'll never feel motivated to trade. If trading is a challenge for you, you can get psyched up and be ready to trade at your peak.
Don't make the mistake of thinking that trading doesn't require some preparation. Some seasoned traders actually rate their mental state before they trade. If they are in a bad mood, or feel dazed and confused, they stand aside for the day. It makes little sense to trade in the wrong state of mind. You will end up making trading errors that you'll regret later.
How can you prepare yourself to trade in the proper mental state? The first step is to make sure that you are rested. Many people think they can get away with the minimal amount of sleep or skip nutritious meals. But proper nutrition and adequate sleep are necessary to cultivate an optimal mindset. Trading saps up psychological energy, and psychological energy is limited, so it is vital that you take steps to maximize your energy through proper sleep and nutrition.
Trading in a peak performance mindset requires intense concentration and focus, but it's difficult to maintain this stance when the pressure is on you to perform. Thus, a second step that you can take is to reduce any psychological pressure that may potentially sap up limited psychological energy. The most obvious way to relieve such pressure is to think in terms of probabilities and carefully manage risk. It's useful to remember that you may not win on any single trade, but after a series of trades, you will have enough winners to make a profit in the long run. It's also important to manage your risk. Determine your risk up front and risk only a small amount of trading capital on a single trade. Doing so will ease a lot of the pressure, allowing you to be more open to see the opportunities that the market offers.
It is also important to anticipate any obstacles that may interfere with your ability to trade. For example, if a stressful event is about to happen, such as a move to a new home or a visit from an overbearing relative, it is important to account for such events. You will have trouble trading when you are stressed out. If you anticipate an upcoming stressful event, you should plan to stand aside until the stressful event passes.
Don't think that you can trade the markets without being mentally and physically prepared. Unless you are at your peak, you will make mistakes. Give yourself a break. You can't trade under all possible conditions. If you are rested, relaxed, and ready to trade at your peak, you will increase your chances of taking 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
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
LEN Trade
On 5th Jul 2018 we gave our Instant Income Guaranteed subscribers the following trade on Lennar Corporation (LEN). Price insurance could be sold as follows:
- On 6th Jul 2018, we sold to open LEN Aug 17 2018 47.5P @ 0.46 , with 41 days until expiration and our short strike about 11% below price action.
- On 16th July 2018, we bought to close LEN Aug 17 2018 47.5P @ 0.22, after 10 days in the trade for quick premium compounding.
Profit: 24$ per option
Margin: 950$
Return on Margin annualized: 92.21%
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 Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
$3,775 PROFIT!
While everyone is confused about the Dollar, Ambush Traders continue to cash in!
The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Dollar Index Future (DX) traded at the ICE, where Ambush Traders are having a really nice time lately.
Ambush day trades on an end-of-day basis so there’s no need to even check the markets during the day.
As you might remember we talked about the Dollar Index a couple of weeks ago and I’d like to give you an update! Back in early July a trading range formed (see chart) and Ambush traders cashed in by following Ambush Signals: selling at the top and buying at the bottom of the range. Guess what, everyone is still confused about the USD as no one knows how that trade war is going to end:
Luckily Ambush has no trouble at all in such markets and so Ambush Traders continued having a really good time trading DX!
Where’s the Dollar Index going next? For sure to either the top or the bottom of the trading range it’s in. As Ambush Traders we don’t mind, we’ll be there ready to sell to or buy from the novice traders who’ll then accelerate our profits as they got to get out of their next losing trade.
Here’s the result of these trades, trading one Dollar Index (DX) contract, including $10 commissions per trade. Yes that’s a win rate of 80% and a profit factor of almost 9!
Is it always like that? Of course not, but if you’ve been on the other sides of these trades trying to buy the breakouts you maybe should think about switching sides!
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.
Happy Trading!
Marco
Feel free to email Marco with your trading questions, This email address is being protected from spambots. You need JavaScript enabled to view it..
© 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.
Edition 736 - July 20, 2018
Summer Special!
50% off Traders Notebook Subscription!
Use Coupon Code: andy50
”The Traders Notebook authored by Andy Jordan based upon his experience and Joe Ross’s techniques is a premier daily advisory, with the what why and when of carefully selected futures trades and more.
I look forward to receiving the notice every night that a new Notebook is available with Outrights, Spreads and Options recommendations and some tidbits as well.
The presentation, reasoning and basis of each trade is explained in such a concise articulate way that you eagerly spend more time looking at the charts rather than trying to put together a drawn-out explanation. That is a most efficient teaching technique.
Additionally, Andy is not only a commensurate trader and teacher but also available for you, helping you with your questions and observations. He teaches you not to just place orders, but how to become a “trader”. I believe this is the genuine mission of Trading Educators and it is exemplified by TN.”
Frank M., July 16, 2018
by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
Traders Notebook - Summer Special
Hi Traders,
I am running a summer special with Traders Notebook that offers you 50% off our regular subscription price! Enjoy half the price with a 6-Month or 1-Year subscription and my discount is good until the end of July. I assure you that this offer will not only save and earn you a few dollars, but will benefit your trading experiences while providing you a personal touch that no other plan offers. Use coupon code andy50 during checkout and start receiving my trading notifications with guidance. Feel free to email me with questions, This email address is being protected from spambots. You need JavaScript enabled to view it., or check out the Traders Notebook Complete product page for more testimonials and product overview.
I look forward to working with you,
Andy Jordan
Coupon Code: andy50
Good through the month of July!
© 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 Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Sucker’s Rally?
Are we looking at a sucker’s rally? Is the sucker's rally about to top out? No one can say for certain. But sometimes it pays to look at the big picture.
The move from 2678.25 to 2796.00 in the June ES chart chewed through 117.75 points. Can we expect a lot of buying by Fibonacci traders at 2737.00, a 50% retracement, with prices having reached 2796.00?
It would not be out of the question to see a pile of buying enter the market at that point. I'm sure the insiders will be waiting to see if the Fib traders go long in mass at that level, if indeed the ES reaches that level. The current rally could stall out at any time, which is why I'm keeping a close watch on the VIX.
The VIX is an index of implied volatility. The higher the VIX reading, the greater that fear of losing is what drives the market. At the low in March 2009, the VIX exceeded a reading of 50, and it exceeded 80 in November of 2008. But when traders are complacent, as they are now, the VIX reading is very low, at around 13. In fact, the VIX reading is lower than it has been since May of 2018.
© 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: Be Humble
Seasoned traders observed long ago that after a series of wins, a trader is vulnerable to over-confidence and trading errors. It's quite understandable. Trading is a competitive business, and when you win, someone else loses. Market participants trade because they are greedy for profits, but often sell out of a fear of losing. How do many traders deal with the inevitable feelings of uncertainty and fear? They become ecstatically happy when they win and ready to brag about their good fortune. Out of a sense of relief, many traders can't wait to brag about their accomplishments. It's important to reward yourself for a job well done, but we have to be careful to avoid getting carried away. Winning traders are humble. They know they can be on top in one market and down in the next. The markets are fickle. A strategy that works in one set of market conditions can fail completely in another set of market conditions.
What's wrong with feeling proud after making a big win? A little pride doesn't hurt. Trading is difficult. Few people master it, so when you are doing well, it's natural to feel a sense of accomplishment and pride. That said, it is important that you rein in your pride and stay humble, especially when you are on a huge winning streak. When you feel overly proud during a winning streak, you may be prone to making a mistake. You may feel so overly confident that you take risks you should not take. The more humble you are the more open you are to your flaws, and the more astute your perceptions of the markets.
Too much pride often leads to disaster. Those who are especially proud have a burning desire to brag about their accomplishments. But bragging can go too far. When people speak of their successes too often, others often resent them, and can't wait for them to fail. The overly proud trader is likely to cave in to strong social pressure to continue making large financial gains to save face. There's also a risk of becoming stubbornly proud. Stubborn pride often happens when people have spent so much of their life feeling proud of their accomplishments, and trying to feel superior to others, that they have difficulty admitting when they have made mistakes. At an extreme, the overly proud trader becomes afraid to face mistakes and may even deny that they have faults.
Extreme pride has been the downfall of many traders. Trading is hard enough without introducing additional psychological pressures to feel superior to others, maintain social status, or save face. When pride drives trading decisions, a trader is likely to take unnecessary risks in order to make big wins to keep up appearances.
Controlling pride is crucial. It is important to develop internal standards of self-worth. It is useful to trade as if you are running a race with yourself rather than running a race against other traders. Develop your own rules and standards related to your skill as a trader. When you reach your standard, you can feel a little pride, but don't feel the need to tell others about it. If you can feel proud of your accomplishments, without feeling the need to brag about how well you have done, or exaggerate how well you are doing, then you will have learned to feel a true sense of self-worth.
© 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
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
FN Trade
On 29th Jun 2018 we gave our Instant Income Guaranteed subscribers the following trade on Fabrinet (FN). Price insurance could be sold as follows:
- On 2nd Jul 2018, we sold to open FN Aug 17 2018 30P @ 0.30 , with 45 days until expiration and our short strike about 19% below price action, making the trade very safe.
- On 12th July 2018, we bought to close FN Aug 17 2018 30P @ 0.15, after 10 days in the trade for quick premium compounding
Profit: 15$ per option
Margin: 600$
Return on Margin annualized: 91.25%
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 Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
$2,790 PROFIT!
Ambush Traders catch stock traders with a bull trap twice for big profits!
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.
Like many other stock indices, the Russell 2000 approached the June highs again this week, very close to the price level where Ambush traders sold the RTY for a $1k profit per contract. And guess what happened this time? Ambush had another sell signal very close to the last one at 1712 points which turned out to be very close to the high of the day. And like last time it turned out to be another bull trap handing us almost another $1k profit, closing the trade at 1693.5!
Is it always like that? Of course not, but if you’ve been on the other sides of these trades you maybe should think about switching sides!
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.
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.
Happy Trading!
Marco
Feel free to email Marco with your trading questions, This email address is being protected from spambots. You need JavaScript enabled to view it..
© 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.
Edition 735 - July 13, 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: Commodity Characteristics
Could Crude Oil hit $86/bbl?
If you look at a daily chart, it seems pretty far away. But....
If you look at a weekly chart of Crude Oil futures, you realize it's no big thing for prices to hit that high – especially if the economy continues in an inflationary mode.
The strange thing about commodities is that commodity prices are determined by commodity prices.
When commodity prices are high, it drives producers and users to find alternatives. Demand drops, and eventually, commodity prices drop. High prices bring in more supply, and before you know it you have too few dollars chasing too much supply.
The opposite is true as well. When commodity prices are low, supply drops off, eventually resulting in short supply. Demand increases as producers and users drop alternative sources in favor of less expensive sources. At some point, you have too many dollars chasing too little supply.
After many years of hearing about peak oil, it may come as a shock that all sort of new supply is coming into play. Some huge new discoveries have been made, and technology will soon bring even more oil online. We are far, far away from running out of oil.
So, while $85/bbl is entirely possible, so, too, is $45/bbl for Crude Oil.
© 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: It Takes Guts
Short-term winning traders have guts. They have to. No one has a crystal ball. You can guess what the markets will do, but you can never know what will happen with complete certainty. Only the traders who risk enough money, and make enough winning trades can hope to achieve glory. And living under these conditions takes guts.
Trading can be about 90% market psychology. Do fundamentals play a role? Sure they do, but mass psychology can play a bigger role at times. Consider a current news headline: ZZZ Company recently announced that it was doubling its second-quarter loss to $254 million. What can you do with this information? It's hard to know. On the one hand, you might anticipate the stock price to fall as sales continue to decline and pension costs plague an already vulnerable company. On the other hand, the stock price may be at a bottom, and ready to rise at the slightest news of prosperity. In the end, no one (besides insiders) will know for sure what will happen in the next few weeks or months.
What can a trader do? You have to take a risk and think optimistically. Rather than mull over how much money you may lose on a trade, it's useful to put the trade in perspective. It's merely one trade among many. Think of the bigger picture. You may lose on a single trade, but across a series of trades you will come out ahead overall. By risking only a small percentage of your capital on a single trade, you can allow yourself to feel at ease, and calmly assess where any given trade is going. You can nonchalantly close the trade when it isn't going well, or let it ride when it is winning. Successful traders plan on executing many trades and 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 in mind takes some of the pressure off, and allows you to go from trade to trade in order to allow the law of averages to work in your favor.
Although thoughtful and astute analysis of a company and its stock performance is vital, trading can also be a matter of chance. It may be impossible to anticipate the outcome of any single trade. However, with a large enough number of trades and a trading approach that has a high chance of producing wins, you can expect to come out ahead if you make enough trades.
Although trading involves chance and risk taking, you should not draw the conclusion that winning traders are reckless. They aren't. They approach trading systematically. They develop clearly defined trading plans and they trade them. They wait for market conditions that increase their odds of success. But most of all, they have a positive attitude. They know that if they do their homework and make enough trades, they will take home a profit. There are no guarantees, but if you work hard, and have the guts to take a risk, you will experience the glory of trading like a winner.
© 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
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
PCG Trade
On 24th Jun 2018 we gave our Instant Income Guaranteed subscribers the following trade on Pacific Gas & Electric Co (PCG), after the breakout of the point 2 of a 123 Low. Price insurance could be sold as follows:
-
On 25th Jun 2018, we sold to open PCG Jul 20 2018 35P @ 0.475 (average price), with 25 days until expiration and our short strike about 18% below price action.
-
On 5th July 2018, we bought to close PCG Jul 20 2018 35P @ 0.20, after 10 days in the trade for quick premium compounding.
Profit: 27.50$ per option
Margin: 700$
Return on Margin annualized: 143.39%
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: Fear in Trading
For some traders it is imperative that they run scared. For those traders it is the emotion of fear that can generate the concentration necessary to survive.
Trading is a stressful business. In other fields we see constant demonstrations of performing under stress. It is the ability to thrive under stress that sets athletic superstars apart. It is the ability to go on stage when your stomach is full of butterflies that can make a stage performer into a star.
An effective trader learns to handle stress. His natural instinct of self-preservation is what makes him effective when challenged.
There are other forms of stress besides fear. Selfishness can cause a trader to fight in greedily for what he thinks he must have. Such a trader will trade without any consideration for personal honesty. His attitude is get what you want. Win somehow.
As a trader you must find out who you are and learn to accept yourself that way.
Regardless of the source of your stress, if you are going to trade effectively, you must face the cause of it and learn to deal with it.
Many successes in your trading,
Andy Jordan
© 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
Trading Example: Ambush Traders catch stock traders with a bull trap twice for big profits!
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.
Like many other stock indices, the Russell 2000 approached the June highs again this week, very close to the price level where Ambush traders sold the RTY for a $1k profit per contract. And guess what happened this time? Ambush had another sell signal very close to the last one at 1712 points which turned out to be very close to the high of the day. And like last time it turned out to be another bull trap handing us almost another $1k profit, closing the trade at 1693.5!
Is it always like that? Of course not, but if you’ve been on the other sides of these trades you maybe should think about switching sides!
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.
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.
Happy Trading!
Marco
Feel free to email Marco with your trading questions, This email address is being protected from spambots. You need JavaScript enabled to view it..
© 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.
Edition 734 - July 6, 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: Trade What You See
If you are a student of The Law of Charts, you understand that what drives prices in any market are the actions and reactions of traders to the movement of price. Last week, when I began writing Chart Scan, I saw reversing action in the Canadian dollar.
What was causing that reverse action? Part of it was due to profit-taking by traders who were long and benefitted from the recent run-up in the C$. Part of what I saw was the result of selling action by the Central Bank of Canada. The Canadians have become concerned about the rising C$, which makes their exports less competitive. One other possibility is in the picture, and hints that possibly I was seeing the end of to the carry trade.
With possibilities abounding, what is a trader to do? My solution to the problem never changes — trade what you see.
As I looked at a daily chart of the C$, I could see some significant things taking place. There was no need to guess. The first clue was when C$ futures soared to 0.8168, but gave back much of what it had gained by Closing at 0.81255. That kind of giving back is strongly suggestive of an impending reversal. Sure enough, two days later, more evidence of reversal appeared as an outside, long bar (OB) down with a Close much lower than the Open.
When I see that kind of situation, I am ready to sell short. In my private tutoring sessions, I teach traders to do exactly that, because there are no fewer than two strong signals to go short staring them right in the face. However, even if you don't recognize those signals, a simple reading of the chart is all you need to recognize that the upward momentum has, at least temporarily, been lost.
© 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-Control
You're in the midst of a perfect trade. You entered where you had planned, and you know when to exit. All you have to do now is wait for the price to reach 53 and sell. But it's not moving fast enough. It seems to be hovering around 51 and 50. You're starting to wonder whether or not it will ever move up. Panic sets in and you sell. About an hour later, the price hits 53 and it now seems obvious that you should have waited. Why didn't you wait? Why did you impulsively sell? If you have trouble maintaining self-control, you're not alone. It's a common ailment.
It's quite possible to have a trading plan all worked out, but fail to follow it. When you plan out the trade in a logical state of mind, you have every intention of following it. You know exactly what you will do and when. At a critical moment of trading, however, something in your inner self goes awry. When you should be especially focused on sticking with your plan, you abandon it. Why did you make such an impulsive decision that you may regret later? Some traders feel that everything happens so quickly that there is very little they can do. To some extent they are right. Your mind and body tend to react so instinctively that you can't slow things down and stop yourself from making an impulsive decision. However, you can practice slowing down the processes that precede an impulsive move. You may not realize it, but every action you take is preceded by thoughts. You have an internal dialog with yourself as you trade; it's sort of like having a conversation with yourself.
What you say in this dialog dictates how you feel and how you act. For example, if you tell yourself, "The price isn't moving the way I want. It never does, and I'm a fool for believing that it will," you will obviously feel uncertain, frustrated, and ready to close out your position. In contrast, if you think, "The price isn't where I would like it to be, but it's too soon to tell what will happen in the end. I need to relax, trust my trading plan and see if it comes to fruition," you will be more likely to stay disciplined and stick with your plan. It may seem obvious that what you say to yourself will dictate how you feel and act, but many people underestimate the power of the internal dialog. They don't realize that thoughts can pop into their head at the wrong moment and seriously impact what they do. If you are not keenly aware of what you are thinking as you trade, you are prone to fall victim to your unproductive thoughts. It is vital to monitor your thoughts, and when you enter a trade, maintain your self-control.
© 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
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
PE Trade
On 12th Jun 2018 we gave our Instant Income Guaranteed subscribers the following trade on Parsley Energy Inc. (PE). Price insurance could be sold as follows:
- On 13th & 14th Jun 2018, we sold to open PE Jul 20 2018 25P @ 0.275 (average price), with 38 days until expiration and our short strike about 13% below price action.
- On 26th June 2018, we bought to close PE Jul 20 2018 25P @ 0.10, after 13 days in the trade for quick premium compounding.
Profit: 17.50$ per option
Margin: 200$
Return on Margin annualized: 98.27%
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: Part 2 - What's my real reason for trading?
Last week we talked about the real reasons for trading and what our hidden goals are. I've received a couple of emails asking me if I can name a few of these hidden goals.
There are numerous motives, but here are just a few to help you get the idea:
- There are those with a deep-rooted belief that things always go wrong and good things never happen to them. They have a wish to confirm this fact to themselves (trading works wonderful for this).
- There is the individual who feels deeply insecure and is looking for something to raise his self-esteem and self-worth.
- There is the trader who believes in creating memorable, flourishing triumphs to be remembered by everyone.
- There is the person who uses trading in the same way people use punching bags – to get rid of the day's frustration. And there is the person who uses himself as a punching bag, employing trading to do the damage.
- There are those who are simply hooked on the adrenaline of the action.
It ought to be stressed that none of these hidden motives are illegal, evil, or bad. They may be exactly what someone wants out of trading. But the problem is, not very many of these motives have any relation to the task at hand ─ trading with the discipline necessary to win consistently.
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.
Many successes in your trading,
Andy Jordan
© 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
Trading Example: Profitably trading the Dollar Index in uncertain Times!
The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Dollar Index Future (DX) traded at the ICE, where Ambush Traders are having a really nice time lately.
Ambush day trades on an end-of-day basis so there’s no need to even check the markets during the day.
Due to the uncertainty in the US moving towards a potential trade war, the Dollar Index has been tough to trade lately. While it has been somewhat moving higher it did so in a very unsteady way with a lot of sideways action in between, see this daily chart of the DX:
Luckily, Ambush has no trouble at all in such markets and so Ambush Traders had a really good time trading DX during the last two months! As you can see we had a lot of trades at the tops and bottoms of these trading ranges, whether they’re small or a bit more expanding.
Where’s the Dollar Index going next? For sure to either the top or the bottom of the trading range it’s in. As Ambush Traders we don’t mind, we’ll be there ready to sell to or buy from the novice traders who’ll then accelerate our profits as they got to get out of their next losing trade.
Here’s the result of these trades, trading one Dollar Index (DX) contract, including $10 commissions per trade. Yes that’s a win rate of over 83% and a profit factor of 9!
Is it always like that? Of course not, but if you’ve been on the other sides of these trades you maybe should think about switching sides!
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.
Happy Trading!
Marco
Feel free to email Marco with your trading questions, This email address is being protected from spambots. You need JavaScript enabled to view it..
© 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.
Edition 733 - June 29, 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 - Traders Trick
Question: Would entry 1 tick below the low of the bar labeled as TTE be valid?
The answer is "perhaps!" The definition of a valid Traders Trick Entry is that there be enough room between the point of entry and the point of the Ross hook for the trader to be able to cover costs and take a profit. But does the Traders Trick on the chart below meet that condition? Most assuredly yes, if we are looking at a weekly or monthly chart. Possibly, if we are looking at a daily chart. But would it be a valid TTE on a 1-, 3-, or even a 5-minute chart? Hardly likely at all.
My point here is that a chart is a chart, is a chart. The Law of Charts states that all price charts reflecting markets make certain formations as humans emotionally respond to the movement of prices.
So what's the difference? The difference is in the magnitude of move that can be expected. For the TTE to work, there must be sufficient room for you to be able to cover costs and take a profit.
A TTE 1 tick below the low of the #3 bar might have worked on one of the lesser time frames. I happen to know a person who lost $45,000 because he could not see what I just explained to you!
© 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 - Timely Exit
What is your tolerance for pain? Consider the following scenario. You have 10% of your account balance on the line. For the past two days, prices have been going in the direction you had anticipated, but today, an announcement was made that caused a market move that caused all your profits to be wiped out in an hour. What will you do? See if prices will move back to where you are okay again? At times like these, it is useful to have a clearly defined trading plan with a specific exit strategy.
Trading is inherently uncertain. You never know exactly what will happen next. That’s what makes the business exciting to some traders but nerve wracking to others. How you handle adverse events that make prices move against you depends on your personality. The best way to protect your capital is to use protective stops. When formulating your trading plan, you must decide how much pain you can tolerate. How much money can you lose before you have to exit the trade? You can set this exit point as a formal stop loss, you can use the automatic settings on your trading platform to set a stop, or you can use a mental stop (not recommended).
The problem with a formal stop loss procedure, whether it is a formal order or an automatic setting on your trading platform, is that a transitory change in price can ‘stop you out.’ if the placement of your stop loss does not adequately account for volatility. It’s hard to know how far a stock may move and a temporary drop can ruin your trading plan when a protective stop is not set properly. Mental stops may be more useful, but you run the risk of not being able to exercise your mental stop (think heart attack, nervous breakdown, stroke, personal emergency, computer failure, etc.). You can decide how far a stock price must move against you before you will liquidate the position. When prices reach the exit point, you can decide whether the low price is transitory or represents a significant change in trend. You can then exit the trade.
This all sounds good in theory, but depending on your personality, you may not be able to carry out this strategy. If you have trouble controlling your emotions and you use a mental stop, for example, you may have trouble closing the trade when it reaches your exit point. Some people panic and out of fear don’t close their position when their mental stop is reached. These people may need to impose the proper amount of discipline on their trading actions by using an electronic stop or a formal stop-loss order.
Minimizing trading losses is the hallmark of successful trading, but not all traders are equal when it comes to their ability to trade decisively under strain. If you want to trade profitably, you have to work around your personality. If you are cool headed, disciplined, and are willing to take the risk even under the most stressful conditions, you can use mental stops to protect your capital. But if you are easily shaken by choppy market action, you might want to use electronic, automatic stops to protect yourself. Whatever you do, however, minimize losses as much as possible. It’s the only way to trade profitably in the long run.
© 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
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
FCX Trade
On 23rd May 2018 we gave our Instant Income Guaranteed subscribers the following trade on Freeport-McMoran Copper & Gold (FCX). Price insurance could be sold as follows:
- On 29th May 2018, on a GTC order , we sold to open FCX Jul 20 2018 14P @ 0.14, with 51 days until expiration and our short strike about 16% below price action.
- On 6th June 2018, we bought to close FCX Jul 20 2018 14P @ 0.07, after only 8 days in the trade for quick premium compounding.
Profit: 7$ per option
Margin: 280$
Return on Margin annualized: 114.06%
Philippe
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♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
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© 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 500*GFU18 – 400* LEG19: long September 2018 Feeder Cattle and short February 2018 Live Cattle (CME on Globex).
Do you want to see how we manage this trade and do you want to get detailed trading instructions every day? Click here for additional information!
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
Trading Blog - Don’t get married to a market!
There are so many different instruments to trade like stocks, bonds, futures, spot forex, options and so on. And even when you decide to get into futures, there are tons of futures out there! So where to even start? I was as confused as anyone else about this when I started trading.
That's why it probably feels good to focus on just one market in the beginning. "I just trade the EUR/USD" or "I only trade the ES" or "I'm a Gold trader" are common statements out there. And that's not a bad thing. It's almost impossible to start otherwise, you have to over simplify things in the beginning. Otherwise, you'd never get started trading at all.
But at some point, you should move on and expand your trading world. There are times when it's almost impossible to make a profit in the EUR/USD or when it's better to stay away from the ES. During these times maybe Gold or Crude Oil or AUD/USD are providing really good trading opportunities.
Especially as a day trader, you got to go where the action is. I've seen many traders going under because they kept on trying to milk a dead cow. That's why recognizing when it's time to look elsewhere is one of the most important skills to survive in the long term.
Don't get married to a single market, don't keep on throwing good money after bad just to prove to your ego that you can get the money back from that market. Be flexible, go where the easy buck is.
There's almost always a low hanging fruit…and usually, you know where it is. You're just too stubborn to take it.
Happy Trading!
Marco
Feel free to email Marco with your trading questions, This email address is being protected from spambots. You need JavaScript enabled to view it..
© 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.
Edition 732 - June 22, 2018
by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
Trading Article - Staying on the “Sideline”
Don't get irritated or angered because you haven't put on a new trade in a long time. Whenever there is nothing to trade, don't trade. Accept it and stay on the “sideline." There will be an attempt by the “trading gods” to wear you down by giving you bad markets over and over, and for extended periods of time. This will happen, and it will happen on numerous, often successive occasions. Know this ahead of time so you are mentally prepared for it when it happens.
Just because you haven't entered a new trade for a long time doesn't mean its time to trade. Some traders think there is some kind of invisible statute of limitations on being passive. After two weeks, you've paid your dues and you've proven that you are a disciplined trader. So now you've earned the right to trade again, right? Unfortunately, this is not the case, and you have to stay on the sideline until a good trade shows up.
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
Trading Example - Natural Gas Bulls got trapped badly by Ambush Traders
The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Natural Gas Future (NG) traded at the NYMEX, where Ambush Traders are having an amazing run lately.
Ambush day trades on an end-of-day basis so there’s no need to even check the markets during the day.
In Natural Gas the Bulls and breakout traders got trapped badly on Monday buying like crazy into the market at a price premium. This caused the market to open with an up gap above Friday’s close. Ambush Traders already had their order in to sell and sold right to those novice buyers.
That open turned out to be pretty much the high of the day and the bulls trapped in their long positions quickly got to realize they’ve been on the wrong side of the market that day. While Ambush Traders started to count their profits they had to get out of their long positions as quickly as they got in and Natural Gas closed about 100 ticks lower near the low of the day:
What’s going to happen next in NG? Well we’re back in our trading range now again and looking forward to the next Ambush Trade! The profit rally for Ambush Traders has been going on for a while now as you can see below even though this Monday we got the biggest fish so far:
Here’s the result of these trades, trading one NG contract, including $10 commissions per trade. Yes, that’s over $3600 trading just one contract!
Don’t miss the next trade 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.
Happy Trading!
Marco Mayer
Feel free to email Marco with your trading questions, This email address is being protected from spambots. You need JavaScript enabled to view it..
© 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 - Trend?
Someone sent me the not so beautiful chart you see below. However, it doesn’t matter about what it is or how it looks. There is a lesson to be learned, and I want to show you how I evaluate such a situation.
The question associated with this chart is: Do we have a clue as to which way prices will break out?
I think we do, so look closely to see why I think that. We have 1-2-3 formations in both directions in what appears to be a market with rising prices. Some people call such a market a “rising wedge” or “rising triangle.: That’s because of the way I drew a trendline. However, I could have just as easily drawn horizontal lines indicating that prices were moving sideways.
In the above situation, I favor the direction of the previous trend, which is “up.” Does it matter where I drew the trendline? I don’t think so. Who is to say where to draw it, or whether or not I should have drawn it. Where people draw lines is a matter of opinion. Yours is as good as mine. Basically, I drew a trendline rather than enveloping the sideways consolidation with horizontal lines, because my bias was toward the rising market. I wanted to show direction, not a geometrically perfect trendline. By the way, what is a geometrically perfect trend line?
© 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 - Overconfidence
How should a trader deal with “overconfidence?” Maybe a better question about confidence--trading and otherwise--is not why people are overconfident to begin with, but why they stay overconfident. You see, the problem with overconfidence is not the innate bias toward optimism that most people seem to possess. That’s a good thing it keeps the world moving forward.
The problem is the inability to temper optimism as a result of prior experience. The truth is, we don’t learn well enough from our mistakes. Consider this: If overconfidence is as big a problem as some say it is, it should be a short-term problem at worst. The learning process would ideally go something like this: “We think highly of ourselves, the world and events show us who the boss really is, and we become less confident and more realistic about our knowledge and skills.” Yet usually, this does not happen. Why? It seems to me that what we face as traders is that we fail to mix confidence with caution. It is when we are on a hot winning streak that we begin to think of ourselves and our trading as invincible. I can’t count the number of times I have seen traders make a few nice sized wins and then watched them drift into a state of euphoria thinking to themselves: “At last, I’ve found ‘the’ way to trade. They actually become giddy. They are so happy with themselves. But as the book of Proverbs so clearly states: “Pride goes before a fall.” Overconfidence leads to pride, even as far as arrogance. It is then when a trader must rein himself in and put up the wall of caution. When you are overconfident, you are ripe for a major setback in 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 Philippe Guartier: Administration and New Developments
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
BBY Trade
On 4th June 2018 we gave our Instant Income Guaranteed subscribers the following trade on Best Buy Co Inc. (BBY). Price insurance could be sold as follows:
- On 5th Jun 2018, , we sold to open BBY Jul 20 2018 62.5P @ 0.53, with 45 days until expiration and our short strike about 11% below price action.
- On 11th June 2018, we bought to close BBY Jul 20 2018 62.5P @ 0.20, after only 6 days in the trade for quick premium compounding
Profit: 33$ per option
Margin: 1250$
Return on Margin annualized: 160.60%
Philippe
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♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
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© 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.
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.
Edition 731 - June 15, 2018
HAPPY FATHER'S DAY!
Use Coupon Code During Checkout!
dad10
(excludes Private Mentoring and 1-Month Traders Notebook)
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 -- NQ
It’s truly amazing how much the price of the Nasdaq Mini has changed over the years. We are looking at the e-mini Nasdaq from 2004, shown a 30-minute chart. The reason I chose this chart was because I want to show that regardless of time frame and date, a chart is a chart. The only thing that really changes over the years is how you manage what you see. As long as human beings trade a market, human emotional reaction to the movement of price will cause certain patterns to form. In this case we had a 1-2-3 high formation followed by an opportunity to enter, which we call a Traders Trick Entry.
As you can see, prices formed a 1-2-3 high. I’ve shown you my entry point using the Traders Trick Entry.
Prices moved from my entry at 1501 to as low as 1492. Even using a 50% trailing stop, you could have made 4.5 points.
In my online day trading seminar, I show you how to select a market, a time frame, and how to manage your trades. Follow this link to learn more about the seminar:
If you are not using The Law of Charts™ and the Traders Trick Entry to take profits out of the market, you are missing out on a lot.
There is a logical way to choose a market and time frame for trading. There is a logical and structured way to determine trading objectives and stop placement.
Using The Law of Charts you can even know when to expect a trend to end. We hope you will come to find out our structured and disciplined way to trade.
© 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 - Confidence
When it comes to trading the markets, nothing is certain. How do you cope with uncertainty? Many traders are overconfident. Rather than face the possibility of losses due to market uncertainty, they fool themselves into thinking they are omnipotent. Behavioral economists Brad Barber and Terrance Odean illustrated how novice traders are especially overconfident. They analyzed account records from a large sample of online investors. Overconfident investors showed this ailment after a large windfall. They put on substantially more trades than other investors, yet achieved few rewards for their efforts. By putting on significantly more trades, they paid more in commissions, which in turn resulted in overall lower account balances. Clearly, overconfidence has a price. Are you willing to pay it?
Tom a seasoned trader told me, "Every time I have issues with confidence, I become overconfident. I try to be very humble when I trade. You're only as good as your last trade. It doesn't matter what you did last month, last year, or the last ten years, it's what are you doing today." But Tom does not lack confidence. He may get beaten down, but he doesn't stay down for very long: "I get worried or depressed for a very short period of time. Rather than dwell on it, I immediately shift my focus and think, 'Okay, fine, let's see how we can get out of this?' What's done is done."
Although overconfidence can lead to risky trades that may produce losses occasionally, a lack of confidence can be even more detrimental. It's probably not a good idea to be optimistic to the point of putting on trades without carefully managing risk, such as limiting the size of a position or using protective stops, but a moderate amount of optimism and confidence is useful.
Pessimists often panic, become fearful, and tenaciously deny they are in a losing trade. A moderate amount of optimism keeps a trader calm and inquisitive. Even in the midst of a losing trade, an optimist may be more likely to seek out information and make an informed decision. Finding the proper level of confidence is key. It is a little like walking a tightrope between extreme unrealistic optimism and extreme debilitating pessimism. Finding the right balance will allow you to pick yourself up when you are beaten down.
The winning trader is both confident and realistic. If you want to trade like a winner, you need to develop a true sense of self-confidence. By gaining a wealth of experience, your confidence will be based on your actual trading skills. When you know what you can do and what you can't, you'll feel calm and self-assured. You'll know what you can handle, and you will be able to trade with solid, realistic confidence.
© 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
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
ANDE Trade
On 25th May 2018 we gave our Instant Income Guaranteed subscribers the following trade on The Andersons Inc. (ANDE). Price insurance could be sold as follows:
- On 29th May 2018, , we sold to open ANDE Jul 20 2018 30P @ 0.30, with 51 days until expiration and our short strike about 9% below price action
- On 4th June 2018, we bought to close ANDE Jul 20 2018 30P @ 0.15, after only 6 days in the trade for quick premium compounding
Profit: 15$ per option
Margin: 600$
Return on Margin annualized: 152.08%
Philippe
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♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
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© 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 - What's my real reason for trading?
"The Rorschach test (also known as the Rorschach inkblot test, the Rorschach technique, or simply the inkblot test) is a test in which a subject's perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex scientifically derived algorithms, or both. Some psychologists use this test to examine a person's personality characteristics and emotional functioning." (Copied from Wikipedia)
Trading is a kind of a Rorschach test, mirroring the personality of the trader's needs and desires. We need to ask ourselves "What is my real reason for trading?" because whatever our underlying motives are, they will show up while trading. Pursuing these hidden goals will negatively affect our trading. Not knowing why they exist may cause us to wonder why certain things keep happening over and over. Finding out the real motives behind why we want to trade will help us to understand why we do certain things, and will help us to become better traders.
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
The right mindset to deal with drawdowns
Drawdowns are an unavoidable fact in trading that's tough to deal with. But you probably already noticed that and might have encountered some of the serious issues this can lead to during your trading career. Maybe you tend to stop trading a system or switch systems always at the wrong time. Or worse. But as I've written about these issues before, here's a mindset that has helped me a lot to deal with drawdowns in the long run.
Things got a lot easier for me once I started to treat trading a system or just following a specific trading plan or strategy like an investment. Let me explain.
Let's say you believe in the success and growth of a certain company, Apple for example. Therefore you decide to invest a certain amount of money in it and buy the stock. You get in at $100. Right after you bought the price of the stock goes down to $95. You're down 5% and probably a little bit disappointed about your bad timing. If you're sane that's where you stop worrying. You won't start questioning your investment because the price of the stock dropped $5. You still believe in the company, nothing fundamental changed so you just keep your stocks. A year later Apple trades at $140 and you're quite happy but it might have been a volatile journey up to $135 during the year. Again though that's no big issue as you expect this. Stock prices can be volatile and you don't expect them to move higher in a straight line!
Why not apply the same mindset to trading a system? Take a certain amount of money and invest it into the strategy. As long as you believe in the strategy and the drawdown is within what you expect, why worry? Just keep on trading it, stop worrying about the daily ups and down and questioning it on every little drawdown. Of course, if something fundamental changes or you hit unexpected drawdowns you act. But otherwise, it really helps to treat it like an investment, leave it alone and let it do its thing.
Happy Trading!
Marco
© 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.
Edition 730 - June 8, 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 - Markets Fall Faster…
I believe that markets fall faster than they rise, except perhaps in currencies, where the rate of descent seems approximately the same as the rate of ascent, from one currency to another. A good part of these moves is due to market manipulation, but also when prices are falling there is a huge emotional component—fear and panic. 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 with Wheaton Precious Metals.
Counting from the bar marked “1,” It took 13 bars to reach bar number 13. However, it took only 5 bars to wipe out any gains made since bar number 1.
© 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 - Efficiency and Success
How much time do you spend preparing for the trading day? Do you spend hours scouring the markets for a winning trading opportunity? Do you watch hours of commentary or read all the major financial newspapers? You don't need to spend hours and hours reading about the markets if it doesn't directly lead to a profit. For example, most media coverage of the markets is for entertainment value, so spending hours reading or viewing it is a waste of valuable time. You need to work efficiently and make sure that the time you spend learning about trading and the markets does indeed pay off.
Consider how a seasoned hedge fund manager, prepares. "I look at about 300 charts every day. That gives me a good feel for what the markets are doing overall. I try to see whether a lot of different markets are signaling the same thing and breaking out at approximately at the same time. I wait for that to happen before I take a position. When it happens, it's fairly clear, and I really don't have any problem with courage at that point." The expert trader doesn't spend hours the night before preparing. Instead, the experienced, winning trader can prepare right before the trading day begins. Rather than wasting time on tasks that don't pay off, the winning trader works efficiently.
Veteran traders may work efficiently, but novice traders may need to spend a little extra time preparing. It's difficult to become a skilled and consistently profitable trader. Only an individual with rare talents can rise to the top 2% who make it as a top-notch trader. It does indeed take dedication and hard work. However, some make the mistake of thinking that trading is like a regular 40-hour a week job. The idea that an hour of work directly produces an hour of pay is not pertinent to trading. Trading is more about accomplishing a specific target, and making a profitable trade, rather than putting in a specific number of hours. For instance, if it takes only 15 minutes for a skilled trader to make enough profit to have a year's worth of living expenses, then so be it. Seasoned traders don't have to spend 40 hours a week to make a living, if they have the requisite skills (and novice traders may need to put in more time building up these requisite skills).
The point is that if you're a novice trader, you can't work under the belief that everything you do will have a payoff. You must also consider that there are a fixed number of hours in the day that you can work, so you must spend that time efficiently. Trading is a challenging profession, and you need to focus your psychological energy on what matters most. For example, don't be distracted by learning additional trading strategies that you will never use, or new indicators that are redundant with basic indicators of trend. And don't believe you must keep up with all the media hype. Focus, work efficiently, and in time you will build the skills you need to become a consistently profitable trader.
© 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
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
M Trade
On 16th May 2018 we gave our Instant Income Guaranteed subscribers the following trade on Macy's Inc (M). Price insurance could be sold as follows:
- On 18th May 2018, , we sold to open M Jun 29 2018 28P @ 0.29, with 41 days until expiration and our short strike about 16% below price action
- On 24th May 2018, we bought to close M Jun 19 2018 28P @ 0.14, after only 6 days in the trade for quick premium compounding
Profit: 15$ per option
Margin: 560$
Return on Margin annualized: 162.95%
Philippe
Receive daily trade recommendations - we do the research for you.
♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
Learn More!
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© 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 - Traders "Pro Active" and "Ray Active" – A Story!
Pro Active and Ray Active are both wannabe traders, but their approach to trading is quite different. Ray is consumed with trading for profits. He imagines himself achieving great wealth, and thinks that when he amasses the riches he is after, he'll finally get the respect and recognition he always wanted from his wife, family and friends. He thinks, "If I can only make it as a trader, I can show everyone that I deserve their respect."
Pro doesn't care about what other people think of him. He concentrates on building up his trading skills. He thinks it would be nice to make consistently regular profits, but he doesn't feel that he absolutely has to obtain great wealth. He enjoys trading. It's fun. It’s what he has discovered he always wants to do. He would trade for minimum wage if he needed to. He doesn't want to do anything else. He feels confident that if he applies himself, he will eventually become a profitable trader.
Pro has a strong sense of his own value as a person, and because he lets his own motives and values guide him, he is likely to reach his goal of become a winning trader. On the other hand, Ray is looking for his value through the eyes of others.
If you want to be a happy winning trader you cannot allow your “net worth” to define your “self-worth.” Any confidence you have has to be within yourself.
Winning traders develop or already have a sense of inner, rather than external, self-value. You are, what you think you are, and the only evaluation of yourself that counts is the one that comes from inside you. That is why anyone who wants to succeed at the business of trading must confront him/herself and discover and deal with who they really are.
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 profit big time from novice traders who’re having a hard time trading the Canadian Dollar!
The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Canadian Dollar Future (6C) 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. Now the Canadian Dollar has been doing what it’s doing most of the time, moving sideways in little boxes in a jerky way which is of course driving most traders nuts!
Luckily Ambush has no trouble in such markets and so Ambush Traders exploited and profited nicely from all the losing breakout traders lately! As you can see we had a lot of trades at the tops and bottoms of these trading ranges, whether they’re small or a bit more expanding.
Where’s the CAD going next? For sure to either the top or the bottom of the trading range it’s in. As Ambush Traders we don’t mind, we’ll be there ready to sell to or buy from the novice traders who’ll then accelerate our profits as they got to get out of their next losing trade.
Here’s the result of these trades, trading one 6C contract, including $10 commissions per trade.
Is it always like that? Of course not, but if you’ve been on the other sides of these trades you maybe should think about switching sides!
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.
Happy Trading!
Marco
© 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.
More...
Edition 729 - June 1, 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 - New Zealand Dollar-Japanese Yen Spread
"Hey Joe! I’ve been watching the spread between the Japanese Yen and the New Zealand Dollar. I don’t have a Forex account, so I watch the spread as a differential spread long yen and short kiwi. Based on the chart below, do you think we are looking at a bottom for the yen? "
I think it’s much too soon to call for bottom in the yen. A one-day move is not sufficient for calling a bottom, in the yen or even a bottom in the spread.
The kiwi is still in an established uptrend.
And, all the yen has done is make a one-day spike upward in a trading range, which could be nothing more than stop running.
© 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 - Greed
In the movie "Wall Street," Gordon Gekko argues, "Greed is good." Greed can motivate you to strive for perfection and keep you persisting in the face of adversity, but greed has its downside. It is often said that the markets are driven by fear and greed. The masses have a natural desire for wealth and all the advantages that money can buy. In their zeal, the masses invest in stocks and believe that their investments will allow them to achieve their financial goals. When the price starts going down, though, they fear losing their investment and they sell, often too prematurely and at a loss. The dynamics of greed drive the dynamics of the market.
In the movie "Wall Street," Gordon Gekko argues, "Greed is good." Greed can motivate you to strive for perfection and keep you persisting in the face of adversity, but greed has its downside. It is often said that the markets are driven by fear and greed. The masses have a natural desire for wealth and all the advantages that money can buy. In their zeal, the masses invest in stocks and believe that their investments will allow them to achieve their financial goals. When the price starts going down, though, they fear losing their investment and they sell, often too prematurely and at a loss. The dynamics of greed drive the dynamics of the market.
As an individual trader greed may drive you. Trading is a challenging profession. Not everyone makes it. You have to study the markets and learn how to take out profits from the market action. How to do this is not obvious. Finding profitable trading strategies is an unending search. You may find a strategy that works for a while, but market conditions change and the strategy no longer works. The challenge is to make profits in market after market. Why bother? If you aren't driven to achieve success, you won't make it. You won't persist. You won't try to overcome setback after setback. Greed is a powerful motivator. It is natural to seek out happiness. If you are similar to most people, you dream of eternal bliss. For centuries people have fantasized that if they had immense wealth, they could solve all their problems, but this fantasy is often unrealistic. The human mind is capable of fooling itself into falsely believing that unrealistic fantasies can come true.
Money is a powerful motivator, but many people know deep down that money can't solve all our problems. And those thoughts and feelings that lie deep down in our psyche can often influence us when we don't want them to. Since we know that money isn't going to solve our problems, we can lose hope when everything seems to be going against us. It's important that we acknowledge how greed can be a motivator but also a barrier. It can distract us from focusing on our trading plan. We can become so consumed with the pursuit of money that we fail to appreciate the inherent rewards of trading. Trading offers an intellectual challenge. You can build up your trading skills through practice and experience and feel good knowing that you have mastered a skill that few have developed. Don't focus all your energy on money and the accumulation of it. Instead, focus on developing your skills and enjoying the process of trading. In the long run, you'll find that you will enjoy trading a lot more.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
by Philippe Guartier: Administration and New Developments
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
MU Trade
On 15th May 2018 we gave our Instant Income Guaranteed subscribers the following trade on Micron Technology Inc. (MU). Price insurance could be sold as follows :
- On 17th and 18th May 2018, , we sold to open MU Jun 15 2018 44P @ 0.25 (average price), with 26 days until expiration and our short strike about 17% below price action
- On 22nd May 2018, we bought to close MU Jun 15 2018 44P @ 0.05, after only 5 days in the trade for quick premium compounding
Profit: 20$ per option
Margin: 880$
Return on Margin annualized: 165.91%
Philippe
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© 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 - Inter-Market spread
This week, we're looking at 100*ZMZ18 – 600*ZLZ18: long December 2018 Soybean Meal and short December 2018 Soybean Oil (CBOT on Globex).
Today we consider an Inter-Market spread in the Soybean Complex: long December 2018 Soybean Meal and short December 2018 Soybean Oil. While the spread has been in a long term up-trend since the beginning of 2018, it has retraced from its May during the last few weeks. But the spread has found support at around $18,000 in April as well as in May. With an initial stop below the May low at approx. $17,700 and a potential target at $20,000 or even higher, the risk/reward ratio is in our favor. Please note: To alleviate the problem in spreads wherein tick values are not equal, one can convert the price of each contract into an equity value for each contract. Therefore, we multiply the Soybean Meal by 100 and the Soybean Oil by 600.
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
AlgoStrats:FX Live Account hits new high for the year thanks to a 90 pip profit in AUD/USD
Trading the Forex markets can be tough and a lot of traders have been caught by the reversal in the USD related markets this week. The AUD/USD being one of the strongest markets, making back a week of losses within a single trading day.
Thanks to one of our mean reversion systems at AlgoStrats:FX we could catch almost the whole trading range of that day! As you can see on the chart below, we got in close to the low of the day and out close to the high, caching in a 90 pips profit.
At AlgoStrats:FX there is no "fantasy-trading" as with most signal services where you’re shown trades that actually never happened! All of the trades are real trades, traded in a live trading account. As a subscriber, you get access to all of the daily account statements of this account.
Overall we are up about 5% so far this year using very conservative risk management:
Learn More about AlgoStrats:FX
Happy Trading!
Marco
© 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.
Edition 728 - May 25, 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
Ambush Traders having a crazy winning streak in Natural Gas Futures
The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Natural Gas Future (NG) traded at the NYMEX, where Ambush Traders are having an amazing run lately.
Ambush day trades on an end-of-day basis so there’s no need to even check the markets during the day. Now NG has been doing what it’s doing most of the time, moving sideways in a jerky way:
As you can see we had a lot of trades at the tops and bottoms of that trading range. With Ambush we’re in the trade when the reversal is actually happening and a new top/bottom is being put in place. Not when it’s over which is when other traders notice it after the fact and try to jump in way too late!
Here’s the result of these trades, trading one NG contract, including $10 commissions per trade. Yes, that’s a winning rate of over 90% with a profit factor of almost 30!
Is it always like that? Of course not, but it’s these periods Ambush traders love the most, literally dominating a market often for months at a time.
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.
Happy Trading!
Marco
© 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 - Copper
In this issue of Chart Scan, we look at a very encouraging price breakout on the weekly chart of the price of copper.
The price of copper is one of the best gauges of global economic health. Copper is a key ingredient in transmission lines, plumbing, automobiles, appliances, and electronic equipment. The demand for copper rises and falls with manufacturing, infrastructure spending, and residential construction.
Copper had been suffering a huge decline, but as you can see on the chart below, it reached the critical price of $2.40 per pound. This price of $2.40 happened to be the lowest point copper had reached during its huge correction in 2007. From there prices had gone even lower, and so $2.40 became a point of resistance.
What is happening to cause copper and other industrial metals to move higher? Construction of the new Chinese Silk Road for one. Threats of war for another. Infrastructure spending in the US is contributing as well. Overall, the global economy looks good for copper prices to rise, although we don’t really know how rotten the global economy may actually be. But even if the global economy is not so good, wars and rumors of war are enough to keep copper in demand with steadily rising prices.
© 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 - Maintaining Discipline
Winning traders are disciplined. Discipline means controlling impulses and fighting the urge to abandon your trading plan prematurely. Maintaining discipline is often easier said than done, especially when the market is moving in your favor. It's hard to avoid closing a trade out early in order to lock in profits. Some winning traders face more losers than winners, and when you hit upon a winner, it's tempting to take profits as soon as possible. But since winning traders are relatively rare, it's important to fight the impulse to sell prematurely and let the winning trade run for a while. In order to win big, it is necessary to delay gratification and patiently wait for the price to rise to your exit point according to your trading plan. Discipline is key, and it is vital to take whatever steps are necessary to maintain discipline.
Your mood can play a major role in determining your ability to stick with your trading plan. When you are in a bad mood, you may have trouble sticking with your trading plan. A 1991 study illustrates how feelings of emotional distress can influence your ability to maintain discipline. Participants engaged in a laboratory simulation in which waiting patiently resulted in greater profits. Specifically, participants were asked to pretend they were fishing in a lake, and that they would be given a monetary reward for each fish they caught. Taking too many fish out of the lake early in the game produced immediate profits, but when fish are taken out early, fewer fish are left in the lake to reproduce, and so, few fish can be taken out for a profit in the long run. Thus, waiting patiently to take out fish later is the most profitable strategy. Participants' moods influenced their ability to wait patiently and fight the urge to take profits too early.
You might see how this experiment has relevance for trading. When you are in an unpleasant mood, you may have a strong need to feel better. How can you feel better? Making money usually makes you feel better. You can either take profits out of a winning trade immediately or you can make an impulsive trade to get a quick thrill. Your mood can make all the difference. It is useful to make sure you are in a good mood while trading. When you are in a bad mood, you may act impulsively in order to make yourself feel better.
Of course, if you are a scalper, your plan may be to take quick profits whenever you can, as long as you are a high percentage winner.
Maintaining discipline is vital for trading success but it is difficult at times. The best ways to keep disciplined are to trade with a detailed trading plan, but this may not be enough. You must also make sure you are in a good mood. A good mood can mean the difference between trading impulsively and maintaining discipline.
© 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
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
WDC Trade
On 10th May 2018 we gave our Instant Income Guaranteed subscribers the following trade on Western Digital Corporation (WDC). Price insurance could be sold as follows:
- On 11th May 2018, , we sold to open WDC Jun 22 2018 71P @ 0.79, with 41 days until expiration and our short strike about 10% below price action.
- On 16th May 2018, we bought to close WDC Jun 22 2018 71P @ 0.39, after only 5 days in the trade for quick premium compounding.
Profit: 40$ per option
Margin: 1420$
Return on Margin annualized: 205.63%
Philippe
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♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
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© 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 - The "Crush Spread"
The spread is defined as buying one futures contract, and selling a different, but related futures contract. Specifically, when trading the crush spread, you would buy soybeans and sell its respective products, the soybean meal and soybean oil. This is what is referred to as being crushed. If you buy the soybean meal or the soybean oil and sells soybeans, that is what is referred to as being reversed crushed. Soybeans alone have relatively little value. The value of soybeans is the fact that when crushed, the products have great value globally. Soybean meal is of value to the farms that raise chicken and hogs. Soybean meal is rich with protein and is fed to these animals to fatten them up. Soybean oil is of value across an array of industries. Primarily, soybean oil is used in food as one of many available edible oils. Soybean oil is also being used in a mixture to create an alternate source of energy to compete with crude oil. These uses and others of the products give soybeans their value.
There is more to you than your business. You are more than your trading. A proper fence informs you that the results of one trade are not to be confused with the results of all of your trading. Fences guide you as to the difference between the past, the present, and the future.
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.
Edition 727 - May 18, 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 - Hedging with Currency ETFs
At a time of crisis, it really helps to know what to do with your money. The strange thing is that you can protect your money by buying the money of others. There are two ways to go with this concept: 1. Use your shrinking dollars to buy foreign currencies when the dollar is falling and any one of a number of foreign currencies are rising. 2. When the dollar is rising, short any one of a number of foreign currencies that are falling. Either way, you protect your money while your next-door neighbor is probably losing his.
Recently, a friend of mine got into the Australian dollar based on his belief that the US dollar was going to fall. He entered a long position in an Australian Dollar ETF (FXA), which proved to be an adequate hedge.
Typically, moves in currencies last more than just a few days, and often last for many months, especially if the currency of a nation becomes out of favor with the currency of one or more other nations.
Below you can see that being long shares of FXA during December would have been a good way to protect against a falling US dollar.
Keep in mind that many ETFs pay interest on the money you have with them.
© 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 - Trading Opportunities
Good trading times may be just ahead. Are you ready? It’s times like these when the right mental edge can make all the difference. If you want to take advantage of trading opportunities for the New Year, it’s vital that you approach trading with the proper mindset. Be ready to work hard and do whatever it takes to come out a winner.
Unfortunately, many traders aren’t up to the challenge. They don’t have the proper mindset. They don’t have rock solid confidence, and when they see a high probability setup, they flinch, make a trading error and end up with a losing trade. When market conditions are ideal, though, you must be ready to take advantage of them. Self-reproach is the biggest culprit. Many traders are ready to criticize their actions.
Some traders take setbacks in stride. Nothing seems to faze them. Why? They know how to put any setback into the proper perspective; they readily think, ‘It’s just business. It says nothing about me.’ After years of experience, they’ve seen it all, lived through it all, and have learned that the markets are ultimately in control, and so there’s no reason to get unnecessarily upset about the uncertainty of it all.
Other traders, however, secretly fear that the markets will expose their inadequacies. Deep down, they believe they will eventually fail. A little voice in the back of their mind tells them so. This little voice isn’t correct, helpful, or accurate, but it has a subtle impact on the trader’s every move. These thoughts usually happen just below our awareness. These thinking patterns can be seen as ‘automatic thoughts.’ An event happens, such as the market goes against you, and you automatically think, ‘The truth is out; I can’t keep trading profitably.’ The old saying, ‘I think, therefore I am,’ is appropriate here. If you think you can’t keep up your trading performance, you won’t be able to. You’ll start believing your little voice that tells you that you can’t trade. And you will find that even a minor trading error will upset you.
How do you defeat the little voice? Write down your automatic thoughts after they happen and analyze them. Break them down, refute them, and convince yourself that they just aren’t true. For example, if you face a trading setback and think, ‘This setback shows that I’m not a natural born trader; I might as well give up,’ you will actually feel like giving up. This automatic thought is inaccurate, however. When you look at it more closely, you can see that it is not true. First, setbacks happen to all traders. Setbacks should be expected. By thinking they are rare and significant you are exaggerating their importance. You are ‘magnifying’ the event into something bigger than it really is. A setback may reflect poor market conditions, and it may even reflect a lack of experience on your part to deal with a particular set of market conditions, but it is not so meaningful that it is a ‘sign’ that you are not a ‘natural born trader.’ Keep things in proper perspective.
No one really knows what the future will hold, but the start of the New Year looks promising. Don’t sabotage your efforts through self-doubt and unreasonable self-criticism. You can trade profitably if you put in the time and effort. Think optimistically, work hard, 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
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
KEY Trade
On 25th April 2018 we gave our Instant Income Guaranteed subscribers the following trade on KeyCorp (KEY). Price insurance could be sold as follows:
- On 3rd May 2018, on a GTC order, we sold to open KEY Jun 15 2018 18P @ 0.215 (average price), with 42 days until expiration and our short strike about 10% below price action
- On 10th May 2018, we bought to close KEY Jun 15 2018 18P @ 0.10, after only 7 days in the trade for quick premium compounding
Profit: 11.50$ per option
Margin: 360$
Return on Margin annualized: 166.57%
Philippe
Receive daily trade recommendations - we do the research for you.
♦ SIGN UP TODAY! THIS IS WORTH THE INVESTMENT ♦
Learn More!
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© 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 - How to separate your ego from trading?
One way to separate our egos from our trading is to build fences between ourselves and our trading.
Realize that it’s “okay” if you are not right about every trade. It is not important to be right. It is important to execute and carry out your trading plan with consistency and discipline. Give yourself permission to be wrong about a trade.
Realize that taking a loss has nothing to do with your self-esteem. Tell yourself that taking losses is a part of trading. Give yourself permission to lose from time to time. Your ego must remain intact regardless of what is happening in your trading.
Erecting appropriate fences between yourself and your trading maintains your ability to separate yourself from your trading business.
There is more to you than your business. You are more than your trading. A proper fence informs you that the results of one trade are not to be confused with the results of all of your trading. Fences guide you as to the difference between the past, the present, and the future.
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
Trading Article - Who's next in line?
"Buy low, sell high" is one of the most popular memes in the investment and trading world. And obviously, it does make sense, who wouldn't like to buy low and sell high all the time? I found this to be quite a helpful advice to invest in stocks for example. Wait for a crash, buy it and sell again when prices are back to old highs.
Of course, the problem often is to figure out what's actually a low price and what's a high price. You can also buy high and sell higher to make a profit, which is how trend following works.
So what's the real deal here? I think the actual question to ask is "who's going to buy after me?" or "who's next in line?". Will there be enough traders willing to buy after you did at a higher price? Or if you're short the other way around, will there be sellers standing in line to sell after you did or not?
Think about it. To make a profit that's exactly what needs to happen. If you buy at $100, the only way to make a profit is if there are buyers willing to buy at higher prices. If they don't bid it up after you and you find someone to sell to at a higher price, you won't make a profit. Simple fact most traders are not really aware of.
Obviously, there's always someone who's gonna be the last in line. Someone is going to buy the high of the day/week/month/year/all-time. In poker, there's the popular saying that if you don't know who the patsy is in the round after 30 minutes, it's probably you. That same idea applies to trading. If you don't know why other traders are probably willing to buy at a higher price after you during the day, you might be the last one in the order book to bid at such a high price for today.
Because of that, it's always helpful to ask yourself "Who's gonna buy/sell after me and why?". If you can't answer that question it might be best to skip the trade!
Happy Trading!
Marco
© 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.
Edition 726 - May 11, 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 - Weekly Spread Charts
The chart below shows an inter-market spread between Crude Oil (CL) and Natural Gas, (NG) Both are very liquid markets and of course CL is one of the most consumed commodities on Earth. When NG first began to trade in the 1990s it was a wild and crazy market—extremely volatile. To tell the truth, I was afraid to trade it all by itself. However, trading it as part of a spread with CL took away a lot of the volatility and a lot of the risk.
At the time NG began to trade there was little in the way of seasonal information, and certainly nothing at all in the way of regression analysis to indicate that NG today is trading the same way it did in the early years. All I had to go on then was chart analysis, and I used the Law of Charts on both the weekly and daily spread charts to make my trading decisions.
A few months ago, there was a 1-2-3 low on the weekly spread chart long CL and short NG. Entry was taken just above the spread value at the last Ross Hook (Rh) at 101.40. As of the day I took the picture of the chart the spread had made 19 points (A full point in the spread is valued at $1,000. There was no real entry signal on the daily chart.
Despite the fact that today there is more seasonal and correlation information available, I still like to look at The Law of Charts, the way I have done it for years.
© 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 - Why Stops
Would you ever think of jumping out of an airplane without a parachute? Of course not, but that's what some people do when they trade the markets. They are very willing to put their money on the line, but they don't have much to protect them from a major disaster. Placing a stop, for example, can prevent you from allowing a small loss to turn into a big one, but many traders avoid placing stops. Why do some traders take risks by not placing stops? It can be difficult to know where to place a stop. If you fail to account for volatility, you will get stopped out too soon. Other people are afraid to place stops. Placing a stop requires you to consider the worst-case scenario, and to many, it's difficult to consider failure. It's easier to deny the potential problem, and to pretend it will not possibly happen. Many experts, however, suggest placing stops. They know that nothing is certain when trading the markets. They view protective stops as a kind of insurance policy that prevents a catastrophic loss.
One seasoned trader I talked to, says "I never take a trade without knowing my stop. When I take a trade, I'm pretty convinced it's something worthwhile. I've already figured out my stop. I've accepted the (potential) loss before I ever clicked the button or made the call. So if it starts going against me, I don't feel a flood of emotions." For that trader, stops not only protect him from losses, but they help him control his emotions. Stops give him a feeling of security, and allow him to feel calm and relaxed.
Experienced traders may use stops all the time, but even the most experienced traders have difficulty following them. For example, one trader I know, admits, "I've blown stops and it's painful. The weird thing is that money does not seem to be driving it. Afterwards, I sit and try to analyze the incident. I certainly knew better. I believe trading is something of a self-journey. It involves learning about your character, your self-control, and your ego."
Still another trader also admits he blows his stops: "Sure. That happens all the time. There's nothing I can do about it. That's one of challenges that continue to engross me. Do you hold them or do you fold them? If you fold a long position and prices go up, you get angry because you made a mistake. If you hold a long position and prices go down, you become angry again. Nevertheless, you have to stay focused on what's going on and learn from the experience and try to apply it to the future. You're going to take your lumps in the market."
Even though stops are difficult to set and difficult to keep at times, they are an essential component of risk management. Losses are commonplace in trading. As hard as it is to focus on losses, they are impossible to avoid. Rather than avoid thinking of the worst-case scenario, face it head on. Figure out what could go wrong and where you can place a stop to protect you from a huge financial loss. In the long run, you'll find you will limit losses and trade more profitably.
© 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
Developer: Joe Ross
Trading Example: Instant Income Guaranteed
CAI Trade
On 30th April 2018 we gave our Instant Income Guaranteed subscribers the following trade on CAI International Inc. (CAI). Price insurance could be sold as follows :
- On 1st May 2018, we sold to open CAI Jun 15 2018 17.5P @ 0.20, with 44 days until expiration and our short strike about 22% below price action, making the trade very safe.
- On 4th May 2018, we bought to close CAI Jun 15 2018 17.5P @ 0.10, after only 3 days in the trade for quick premium compounding
Profit: 10$ per option
Margin: 350$
Return on Margin annualized: 347.62%
Philippe
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© 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 - RBOB Gasoline
This week, we're looking at RBQ18 – RBZ18: long August 2018 and short December 2018 RBOB Gasoline (NYMEX at Globex).
Today we consider a RBOB Gasoline calendar spread: long August 2018 and short December 2018 RBOB Gasoline. The spread has found support around 0.21 several times and is now trading right in front of the seasonal time window. The seasonal window is very small with only 9 days but the move can be strong to the up-side with a reasonable risk/reward ratio.
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
Trading Idea - AlgoStrats:FX Traders
A stress free-trade in AUD/USD and a good start into 2018 for AlgoStrats:FX Traders
Like all professional traders, we get a mixed bag of trades at AlgoStrats:FX. Some turn out as losers, others as big winning trades. And some of the trades are not spectacular in any way but nice stress-free bread and butter trades.
Here’s an example of a trade we did in AUD/USD. This is a 60-minute chart and as you can see our sell limit order to go short was filled at 0.75547. We got almost no drawdown on the trade and closed the trade at 0.75341 for a nice 20 pip profit.
At AlgoStrats:FX there’s no "fantasy-trading" as with most signal services where you’re usually shown trades that actually never happened! This means all of the trades are actually traded in a live trading account. As a subscriber, you get access to all of the daily account statements of this account. Here’s the discussed trade in detail, showing the trade statement of LMAX exchange:
Overall we’re up about 3.5% so far this year using very conservative risk management:
Learn More about AlgoStrats:FX
Happy Trading!
Marco Mayer
© by Marco Mayer. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
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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.
