Edition 649 - November 18, 2016

TRADING EDUCATORS presents..

Say Hello to Ambush Signals

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method, AlgoStrats.com

You've been curious about the Ambush Trading Method EBook for a while, but haven't been sure, or didn't want to go through the hassle of setting up your charting software accordingly. Or the thought of having to calculate the entry price for each of the markets scared you off. Or if you simply aren't ready to invest in the Ambush Trading Method EBook as you haven't been sure if it's actually for you in the long run.

You will be excited to learn about our new service, Ambush Signals for the Futures markets. Watch my short presentation to find out more about Ambush Signals.

Join Marco Mayer - Ambush Signals!

© 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.
 

Trading Plan Series - Part 8

by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and
Editor of Traders Notebook Complete and Traders Notebook Outrights

In Part 8 of our Trading Plan Series, Andy talks about the "typical part" of a trading plan the entry strategies and setups.

© 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.

The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

SPIKE REVERSAL

Spike reversals have almost always been good for me. They are a definite setup, and with the proper filters, which we teach in our "Trading All Markets" online recorded webinar, it’s possible to approach 90% winning trades.  There have been times during my trading career that I traded only spike reversals. However, the one in the graph would not have been taken. The reason is the gap opening on the bar following the reversal bar. 

To the best of my knowledge, gap openings result in 50% good trades and 50% bad trades. However, 50-50 is not breakeven because of commissions and fees. It means I miss some beautiful trades, but I always want the probabilities to be in my favor.

© 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.

Blog Post - Reaching Your Trading Goals

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

As a trader, it's essential that you set specific goals. Trading is chaotic enough without trying to achieve unstructured goals that are difficult to manage and reach. Making profitable investments requires you to prepare carefully. You have to develop hypotheses regarding current market conditions. You have to devise...read more.

© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.

Instant Income Guaranteed - EWZ Trade

Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 11th May 2016, we gave our subscribers a new type of trade for EWZ, the Brazil ETF, which was showing accumulation on a pullback on the weekly chart.

We entered a "complex position" for a net credit (still working with OPM, i.e. other people's money, as usual), but with unlimited upside potential.

• On 12th May 2016, we entered the trade for a credit of $1.20 (or $120 per position).
• On 14th October 2016, we closed the trade @ $4.15, after 155 days in the trade.

Profit: $535

Margin: $760

Return on Margin annualized: 165.77%

These are low maintenance, low stress trades with lots of upside potential. 

We presently have 15 of these trades opened. We took partial profits on some of them.

This new technique allowed us to take advantage of the recent sector rotation moves in the market, with stocks like US Steel (X), to name only one.

If you are interested in learning this new technique, come and join us!

Philippe

Instant Income Guaranteed

  ♦  SIGN UP TODAY!  YOU ARE WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

© 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 2016 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 648 - November 11, 2016

The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

VOLATILITY STOP

In past issues of Chart Scan I mentioned that The Law of Charts has many implementations. One of them is the Traders Trick Entry. But there are others. One implementation of The Law of Charts is done using the Volatility Stop study (VS).

When you have a trading range and prices ultimately break beyond the trading range, you have a defined trend. When they subsequently form a Ross hook, and then violate the point of that hook, a trend has been established. This is what happened in gold futures based on the daily chart. A low was in place at the base of a trading range. Prices violated the high point of the trading range, and then violated the point of the Ross hook. The VS could then come into play. I will not have time or space to describe in detail the parameters of the VS; however, it is a wonderful device for curve fitting to the reality of a trend. Unlike a moving average, the VS is reflective of current volatility in the market.

The way I use it is to curve fit so that VS shows containment at the base of the new swing that is being formed. From that point you can stay in as long as you do not get a Close below the VS. Some implementations of the VS enable you to offset the VS line by pushing it ahead one day, so that you can know where you will place your protective stop tomorrow. You can change the number of bars to be placed into the moving average of the volatility, and you can use a combination of offset, moving average, and a multiplier to make that VS line snuggle right up to the lows of the trend. The parameter settings for the chart below were a multiplier of 1.5 and 14 bars in the moving average of volatility. The rest of the story is on the chart.

© 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.

Question from a Subscriber:

A reader asks: "I bought a system that requires a minimum account size of $20,000.   If you were me, how would you manage it?"

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

Well, since I’m not you, I can only tell you how I would manage it. If I lost $10,000, I would stop trading and examine my losses to discover if a logical trading plan of action is being pursued. I would separate losses into technical and psychological failures. I would examine each of them separately to discern if any consistent losing behavioral patterns are evident, such as violating the rules of the trading system or if self-discipline is not being maintained. If I were winning, I would be sure to remove my initial startup capital from my account, once my account size had doubled.

Your question brings to mind a sad story about a friend of mine. It took place years ago in a market situation much like we are seeing today in the metals. He was trading the Mexican peso with insider information, and managing an account of $200,000. Each participant in the managed account put up $20,000. In very little time, the account grew to $500 thousand. At that time, with that amount of money, you could really move the peso and cause prices to move against you. There was simply no room for that much money to be traded in that market at that time, and they had no desire to be market movers. So my friend began to trade silver futures, also with inside information. Silver was on a rampage along with gold. Before long, they had $1.2 million in the account. However, their timing was terrible. They were caught in the fiasco when the Hunt brothers tried to corner the silver market. Silver began to crash, and soon their account was wiped out. All the money was lost, the entire $1.2 million. I asked my friend, "When you had $1.2 million in the account, why didn't you at least take out the seed money? Why didn't you take out the $200,000? He said, "No one wanted to touch that money. We were on a roll!" Lesson learned: Take the money when it is there to be taken. At least take out your seed money.

© 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.
 

AA TRADE

Instant Income Guaranteed
Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 12th July 2016 we gave our IIG subscribers the following trade on AA, which gapped up on earnings and was showing strong accumulation. The trade was suitable for very small accounts, with an initial margin of only $180. We decided to sell price insurance as follows the following day:

• On 13th July 2016, we sold to open AA Aug 26 2016 9P @ $0.10, i.e. $10 per option sold, with 43 days to expiration, and our short strike at a major support zone, 16% below price action.
• On 21st July 2016, we bought to close AA Aug 26 2016 9P @ $0.05, after 8 days in the trade, for quick premium compounding

Profit (average): $5

Margin: $180

Return on Margin Annualized: 126.74%

We have also added new types of trades for our IIG daily guidance, "no loss" propositions with unlimited upside potential, still using other people's money to trade.

Philippe

Instant Income Guaranteed

  ♦  SIGN UP TODAY!  YOU ARE WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

© 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.
 

Traders Notebook Outright Futures Trading

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

Traders Notebook Outrights gives you high probablity trades that are hand-picked for optimum results. If you are a futures swing trader looking for real trades while learning the correct way to place stops and the art of trade management, this is for you.

Traders Notebook Outright Guide explains the Outright trading service from Trading Educators. It shows you around on the Outright Campus, and how to use the information provided by the service.

© 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.

This Week's Blog Post:  Vacation trip to Samaná

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

From Saturday October 29 until November 5 my wife and I took a vacation trip to Samaná, Dominican Republic. From Santiago, where we live, it takes about a 3 hour drive to get there. I love the region of Samaná because it is still very virgin compared to Bavaro or Punta Cana with only a few hotels.  Read more.

© 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.

AlgoStrats:FX Live Account Gain With Low Risk

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

Marco Mayer's AlgoStrats:FX Live Trading account gained about +4% with a very low target risk of 0.5% per trade in October.

To learn more, here's a video where Marco walks you through the recent performance of AlgoStrats:FX:

© 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 2016 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 647 - November 4, 2016

You asked for it and we listened. Andy Jordan is now offering a new service called Traders Notebook Outrights for swing traders.  Also, scroll down to read about Marco Mayer's AlgoStrats:FX Live Trading Account which gained about +4% with a very low target risk of 0.5% per trade. 

The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

A Traders Trick Entry (TTE) Question

This week someone asked me: "Joe, would you have taken the Traders Trick even though prices finished in the lower half of the price bar?"

My answer was "I would not take it!" We were looking at a Traders Trick Entry ahead of a breakout of the #2 point of a 1-2-3 low at the end of a swing. However, since my objective would have been scalp money around the #2 point, prices would have  had to move quite a bit on the next bar just to reach the high of the of the #3 bar. As you can see, price did not reach the #2 bar until a day later.

Over the years, many refinements have been made to the TTE. These refinements have made using them result in a very high win percentage. You can learn about the TTE refinements by signing up for the Traders Trick Advanced Concepts Webinar.

© 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.

Question from a Subscriber:

A reader asks: How do you handle fear? I seem to have plenty of it.

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

Let’s get one thing straight. Fear, for the majority of traders, is a very real thing. You have it, I have it. Others have it as well. What is it that traders fear? The top three, in order, are:

1. Fear of missing a trade.
2. Fear of losing money.
3. Fear of being wrong and losing face.

In order to become a professional trader, you must learn to deal with fear. The first step is to acknowledge that you have it, which is what you have done. Once you admit to fear, you can begin to deal with it.

When you notice the impulse to trade based on strong fear, it is usually best to literally step out of the trap by stepping out of the situation.

You need to get up, walk away from the computer. Turn off the television if it's tuned to a financial station, take a walk, get something to eat, go outside and cut the grass, water the lawn, or do anything that will move you out of the fear/panic mode.

Don’t return to your trading desk until you have managed to achieve some emotional control over your fear/panic reaction. If you can’t get a grip on your fear, then don’t come back that day.

Most likely you will find that even if you keep thinking about the miserable market conditions while you water the lawn, simply getting away from the keyboard and monitor is enough to make a difference. It removes the demand to take action, and gives you the mental space to gain perspective and let go of your impulsive, fear-based reaction.

© 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.
 

SLCA TRADE

Instant Income Guaranteed
Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 7th September 2016, we gave our IIG subscribers the following trade on SLCA, which was showing strong accumulation. We decided to sell price insurance as follows, in 2 equal steps:

• On 8th September 2016, we sold to open SLCA Oct 21 2016 33P @ $0.30, i.e. 30$ per option sold, with 43 days to expiration, and our short strike well below a major support zone.
• On 12th September 2016,we sold to open SLCA Oct 21 2016 33P @ $0.50 on a good till cancelled order.
• On 20th September 2016, we bought to close SLCA Oct 21 2016 33P @ $0.20, after 10 days in the trade, for quick premium compounding.

Profit (average): $20

Margin: $660

Return on Margin Annualized: 110.61%

We have also added new types of trades for our IIG daily guidance, "no loss" propositions with unlimited upside potential, still using other people's money to trade.

Philippe

Instant Income Guaranteed

  ♦  SIGN UP TODAY!  THIS IS WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

© 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.
 

Traders Notebook Outright Futures Trading

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

Traders Notebook Outrights gives you high probablity trades that are hand-picked for optimum results. If you are a futures swing trader looking for real trades while learning the correct way to place stops and the art of trade management, this is for you.

Traders Notebook Outright Guide explains the Outright trading service from Trading Educators. It shows you around on the Outright Campus, and how to use the information provided by the service.

© 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.

This Week's Blog Post:  Overconfidence

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

When traders are hot and seemingly cannot lose.  When they make several trades that perform exceedingly well, there is a surge of human pride. They feel like...read more.

© 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.

Golden October for AlgoStrats:FX

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

Marco Mayer and his subscribers had a great trading month in October. The AlgoStrats:FX Live Trading account gained about +4% with a very low target risk of 0.5% per trade. This was possible thanks to a winning rate of about 85% while having a profit to loss ratio of about 2:1 at the same time. Sounds awesome? We think so too, especially considering we're trading just once each day and usually are done trading within 2-3 minutes.

Don't forget this happened not just on some spreadsheet with some numbers on it or on a simulated account, but on a real money account that is fully transparent to all AlgoStrats:FX subscribers.

To learn more, here's a video where Marco walks you through the recent performance of AlgoStrats:FX:

© 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 2016 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 646 - October 28, 2016

Let's be real. How many times have you encountered failed promises to "get rich quick" with your trading, and have taken huge hits to your bank account?  Well, you won't find that here.  Our philosophy is very clear and concise:

"Teach our students the truth in trading - teach them how to trade," and "Give them a way to earn while they learn - realizing that it takes TIME to develop a successful trader."

Invest in yourself today!  Private tutoring is available with any of our three professional traders.  Ask them the difficult questions, revise your trading plan, or whatever you feel that needs extra attention taking you to your next level of trading.

The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

Trading Tops and Bottoms

How do you trade markets that form "V" bottoms, or for that matter, "A" tops. The method I usually follow causes me to miss the first part of the move, but I feel that with "V" bottoms and "A" tops it is better to be safe than sorry. Typically, when prices form sharply-turned bottoms and tops, the move is considerable once it becomes established. Such was the case shown on the chart below. I've pointed out on the chart the way my method would allow me entry into the trade. It follows the rules for the Law of Charts. The Law states that the breakout of the #2 point of a 1-2-3 low defines a trend; a breakout of a Ross Hook establishes a trend.

Prices formed a potential #2 point at .7342. The pattern then corrected, but not enough to establish the #2 point. A #2 point by definition requires both a lower high and a lower low to form before a #2 point is in effect. Prices moved to .7343 where, by definition of both a lower low and a lower high following the move to .7343, there was a defined #2 point. Prices then made a higher low and a higher high, putting into effect the #3 point. Two bars later, a Ross hook was formed when prices failed to move higher. A Traders Trick Entry was in effect at .7459, leaving plenty of room to cover costs and take a profit. The rest is history, and it seemed that prices would soon arrive at .8000.

© 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.

Question from a Subscriber:

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

A reader asks: "Hey Joe! I’m pretty new at this. Can you tell me the rules for buy and sell stops?"

When the market trades above (“trades through”) a buy stop price order, it becomes a market order. The first down tick after the market order price is activated determines the highest price at which the buy stop order may be filled. The rule to remember placing stops is this, "Buy above and sell below." Buy stops are placed above the current market price, and sell stops are placed below the current market price. If a buy stop price is hit, the order then becomes a market order to be filled electronically or by the floor broker at the best price possible. If a buy stop is hit at 40, and the market trades 40, 45, 50, then 45, the worst fill a trader can receive is a 50, because 45 is the first down tick. In general, you must expect to get the worst fill possible. Anything better is a bonus. The exception to this rule is a fast market condition, when no one is legally held to any price.

© 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.
 

SLB TRADE

Instant Income Guaranteed
Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 31st May 2016, we gave our IIG subscribers the following trade on SLB, which was showing accumulation on a pullback. We decided to sell price insurance as follows the following day:

• On 1st June 2016, we sold to open SLB Jul 15 2016 70P @ $0.80, i.e. $80 per option sold, with 44 days to expiration, and our short strike below a major support zone.
• On 6th June 2016, we bought to close SLB Jul 15 2016 70P @ $0.40, after 6 days in the trade, for quick premium compounding.

Profit: $40

Margin: $1,400

Return on Margin Annualized: 208.57%

We have also added new types of trades for our IIG daily guidance, "no loss" propositions with unlimited upside potential, still using other people's money to trade. 

Philippe

Receive daily trade recommendations - we do the research for you!
Instant Income Guaranteed

  ♦  SIGN UP TODAY!  THIS IS WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

We review and supply the following:
 

• our daily fills (entries, exits)

• full real-time statistics of our weekly trades, closed trades for the current month, monthly statistics (detail and summary) since the beginning of IIG

• daily market commentary (indices/sectors, volatility indices, main commodities related to our trade)

• new trades for the following day

• comments on our open trades, with all relevant news

• updated earnings dates for our open positions

• full details (days in trade, days to expiration, underlying close and price change, etc.) on our open trades (classic trades, complex positions, remaining rolled trades and covered calls)

• active good till cancelled orders

• dividends for the stocks owned

We also supply quite a number of extra "slides" in the appendix which are quite useful for new subscribers: recommendations, answers and explanations on the most frequent questions, techniques for entering trades, historical trades and real life examples, broker information, etc.

© 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.
 

Trading Idea

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

Andy is looking into the seasonal Feeder Cattle spread long May and short March 2017.

Traders Notebook Outright Futures Trading

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

If you are interested in outright futures short term swing trading, you should check out our new service Traders Notebook Outrights.

Traders Notebook Outright Guide explains the Outright trading service from Trading Educators. It shows you around on the Outright Campus and how to use the information provided by the service.

© 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.

Blog Post - Time

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

You pay a price for every profit you take with time and effort required to obtain it. Not to mention the years of experience upon which your knowledge and system methodology have...read more.

© 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.

This Week's Blog- FOMC Days = Crazy Days?

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

This Tuesday, we'll have another Federal Open Market Committee (FOMC) day. Whenever the FOMC meets and releases its rate decision and its statement, it’s seen as one of the most important data releases in the markets in the currency markets. But is it really such a market mover? What kind of moves can we actually expect on such a day? Well, let's find out and look at some statistics! Read more.

© 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 2016 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 645 - October 21, 2016

We offer different trading advisories for a variety of markets, so enhance your trading style today!  Check them out to find your best fit.

Instant Income Guaranteed - Stock Options

AlgoStrats: FX - Forex

Traders Notebook Complete - Futures, Options, and Spread Trades

Traders Notebook Outrights - Futures

The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

Where’s the Ledge?

I received a chart with a question: "Where is the ledge?" Below you see the chart with the ledge as I drew it. In order to understand the concept, you have to know how a ledge is defined within The Law of Charts. A ledge comes when prices are trending or swinging. It consists of 4 to 10 bars and has two matching or close to matching highs and two matching or close to matching lows. There must be at least 1 price bar between each of the matches. In the case below there were two bars between the matches. Entry is made when prices breakout in the direction of the most recent swing or trend. Entry was 1-tick above the high of the ledge as shown by the dark arrow. The swing in this case was up from approximately 58.00 to between 63.50-64.00.

© 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.

Question from a Subscriber:

"Have you ever felt as if the more you know, the less you know, and the more you become confused? Why is this?"

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

People have the tendency to believe that the accuracy of their forecasts increases with more information. This is the illusion of knowledge – that more information increases your knowledge about something and improves your decisions. However, this is not always the case. Increased levels of information do not necessarily lead to greater knowledge. There are three reasons for this. First, some information does not help us make predictions and can even mislead us. Second, many people may not have the training, experience, or skills to interpret the information. And, finally, people tend to interpret new information as confirmation of their prior beliefs.

Let me give you an example of how too much information can lead to a paralysis of confusion.

I met a man who was an avid student of the teachings of W.D. Gann. Gann believed in the movement of prices along a 45 degree angle. He also believed that time intervals of 3, 5, 9, and others had great importance. So the man I knew created moving averages of 3-bars, 5-bars, 9-bars and multiples thereof. Of course, 3 x 9 equals 27 and so he kept 27 bar moving averages. 5 x 9 is 45, and so he also kept 45 bar moving averages. He also watched 135-bar moving averages (3x45) and others. He looked for agreement among all of these moving averages, which of course, led to great confusion, since it was rare indeed and most likely coincidental when all of the moving averages showed some sort of agreement (confluence). So this man suffered greatly from paralysis of analysis. He simply had too much information, and he was unable to pull the trigger on a trade.

I will never forget the statement he made to me: “Joe, I know so much. Why then is it that I never seem to be making money?”

I think from the above description you should be able to figure it out, just as I did.

© 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.
 

WYNN TRADE

Instant Income Guaranteed
Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 1st August 2016, we gave our IIG subscribers the following trade on WYNN, which was showing accumulation on a pullback. We decided to sell price insurance as follows the following day:

• On 2nd August 2016, we sold to open WYNN Sep 16 2016 75P @ $0.47, i.e. $47 per option sold, with 44 days to expiration, and our short strike  23% below price levels when we gave the trade, making it pretty safe.
• On 11th August 2016, we bought to close WYNN Sep 16 2016 75P @ $0.14, after 9 days in the trade, for quick premium compounding.

Profit: $33

Margin: $1,500

Return on Margin Annualized: 89.22%

We have also added new types of trades for our IIG daily guidance, "no loss" propositions with unlimited upside potential, still using other people's money to trade. 

Philippe

Receive daily trade recommendations - we do the research for you!
Instant Income Guaranteed

  ♦  SIGN UP TODAY!  THIS IS WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

We review and supply the following:
 

• our daily fills (entries, exits)

• full real-time statistics of our weekly trades, closed trades for the current month, monthly statistics (detail and summary) since the beginning of IIG

• daily market commentary (indices/sectors, volatility indices, main commodities related to our trade)

• new trades for the following day

• comments on our open trades, with all relevant news

• updated earnings dates for our open positions

• full details (days in trade, days to expiration, underlying close and price change, etc.) on our open trades (classic trades, complex positions, remaining rolled trades and covered calls)

• active good till cancelled orders

• dividends for the stocks owned

We also supply quite a number of extra "slides" in the appendix which are quite useful for new subscribers: recommendations, answers and explanations on the most frequent questions, techniques for entering trades, historical trades and real life examples, broker information, etc.

© 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.
 

The Whipsaw Song by Trading Tribe

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

Once in a while I stumble over a nice article, video or any other source of information about trading on the internet that I would like to share with all of you. 

I found this video a long time ago and honestly, I like it a lot. It is fun to watch and the rules mentioned in the video are very simple to follow, and explains what a trader really needs. I’ve tried many different ways in trading, but I always coming back to the simple things because this is what works best for me. Using a simple strategy does not allow me to “doubt” on my entries. I do not have to re-think where to enter, where to put my stop, and where to take profits. For me, simple is GOOD.

Enjoy the video!

Traders Notebook Outright Futures Trading

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

If you are interested in outright futures short term swing trading, you should check out our new service Traders Notebook Outrights.

Traders Notebook Outright Guide explains the Outright trading service from Trading Educators. It shows you around on the Outright Campus and how to use the information provided by the service.

© 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.

This Week's Blog - Waiting for Confirmation?  Don’t wait too long!

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

In his newest article, Marco writes about why waiting for the confirmation of a trading idea often comes at a high price. Read more.

© 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 2016 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 644 - October 14, 2016

Don't be alone on your trading journey.  We are here for you.  Let us educate, guide, and improve your existing trading style.  If you're new to the business, then you have found the right place!

The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

CRUDE OIL

At the time I wrote this issue of Chart Scan crude oil was leaping higher. Where it will be by the time you get this issue of Chart Scan, I have no idea, but it's a good example.

The question I received was, "Is it okay to take gap open entries on Traders Tricks?" The only honest answer is take a look at the market to see if they usually work in that particular market. Based on what we can see on the crude oil chart, I would have to say it's worth taking a shot at it. Surely on both TT entries there was plenty of room to cover costs and take a profit. Both entries filled my requirement that I get paid to trade, and get a free trade while I'm at it.

© 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.

Here are two ways to know when prices are getting ready to break out from a trading range.

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

When prices are in a trading range, count the number of closes above or below a specific price near the vertical mid-level of the trading range. If 70% of the closes are above the mid-level price, and the market cannot rally and close above reaction highs, a severe correction may be imminent. If prices break and cannot close below reaction lows, expect a rally to carry prices above the reaction highs. E.g. Let’s assume that a futures chart is showing that about 90% of the Closes are above 445.00, yet prices cannot Close above 455.00. If prices finally do Close above 455.00, a strong buy signal would then be in place.

Another way to determine that prices are about to break out of a trading range is to note if you have a 1-2-3 followed by a Ross hook within the trading range. If both are present, the percentages favor a breakout to follow, and entry by way of a TTE is acceptable.

A 1-2-3 formation followed by a Ross hook is a consistent objective chart pattern for defining that a trend or swing is in process. Once the point of the Ross hook has been violated, this pattern is enough to establish that a trend or swing does exist.

© 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.
 

MON TRADE

Instant Income Guaranteed
Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 6th April 2016 we gave our IIG subscribers the following trade on MON, which showed high premium with short strikes above support levels and buying activity. We decided to sell price insurance as follows the following day:

• On 7th April 2016, we sold to open MON May 20 2016 82.5P @ $1.30, i.e. $130 per option sold, with 43 days to expiration, and our short strike right at a major support level;
• On 19th April 2016, we bought to close MON May 20 2016 82.5P @ $0.65, after 12 days in the trade, for quick premium compounding.

Profit: $65

Margin: $1,650

Return on Margin Annualized: 119.82%

We have also added new types of trades for our IIG daily guidance, "no loss" propositions with unlimited upside potential, still using other people's money to trade. 

Philippe

Receive daily trade recommendations - we do the research for you!
Instant Income Guaranteed

  ♦  SIGN UP TODAY!  THIS IS WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

We review and supply the following:
 

• our daily fills (entries, exits)

• full real-time statistics of our weekly trades, closed trades for the current month, monthly statistics (detail and summary) since the beginning of IIG

• daily market commentary (indices/sectors, volatility indices, main commodities related to our trade)

• new trades for the following day

• comments on our open trades, with all relevant news

• updated earnings dates for our open positions

• full details (days in trade, days to expiration, underlying close and price change, etc.) on our open trades (classic trades, complex positions, remaining rolled trades and covered calls)

• active good till cancelled orders

• dividends for the stocks owned

We also supply quite a number of extra "slides" in the appendix which are quite useful for new subscribers: recommendations, answers and explanations on the most frequent questions, techniques for entering trades, historical trades and real life examples, broker information, etc.

© 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.
 

This Week's Blog Post - Don't Let Your Emotions Influence Your Decisions in Trading

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

Trading is nothing more than a long, random statistical run. An experienced trader knows that even if he is in a losing streak right now, as long as he sticks to his already approved trading plan, he will come out a winner in the long run. Read more.

Traders Notebook Outright Futures Trading

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

If you are interested in outright futures short term swing trading, you should check out our new service Traders Notebook Outrights.

Traders Notebook Outright Guide explains the Outright trading service from Trading Educators. It shows you around on the Outright Campus and how to use the information provided by the service.

© 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.

Why Entry Signals are Important and How to Test Them

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

In his new video Marco talks about why he believes Entry Signals are the most important aspect of a trading strategy. He then shows you how he likes to "prototype"-test entry signals and why it's important to do so.

© 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 2016 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 643 - October 7, 2016

Experienced traders find time to work and play.  If you're not at the level you desire, don't waste another day, contact us for help.

The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

GAPS

“Hey Joe, I noticed that when I look at older charts as presented in books and historical data, I see a lot of gaps. There doesn’t seem to be so many these days. Can you explain?”

Prior to extended hour trading, prices would have lots of hours between trading sessions. As an example let’s look at a weekly gold chart. Gold traded at the Comex Exchange between the hours of 7:20AM US Central Time and 1:15PM, almost 6 hours.

However, people traded in gold for 24 hours—leaving 18 hours during which gold prices moved. The move in prices was reflected at the Open. There were many gaps, even on weekly charts as shown above. Gaps were so significant they even had names. The first gap out of consolidation was called a “breakaway” gap. If prices continued to rise, the next gap was called a “runaway” gap. At some point prices would make one last effort to move higher. That last effort often resulted in a final gap opening called an “exhaustion gap.”

With extended trading hours it is a rare week that will show any kind of gap at all in a futures market. Daily gaps have also become uncommon. However, daily chart gaps are still frequently seen in the stock market. There is a premarket and an aftermarket in stocks, but not a lot of price movement takes place during those hours.

© 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.

Question from a Subscriber

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

"I just want to be prepared for the next legal holiday. I’ve been basically a Dow investor for years and now I've begun trading the Dow futures. Do you have any information about the Dow Industrial Average relative to legal holidays in the U.S?"

Thanks to Yale Hirsch’s excellent "Stock Traders Almanac" for the following: “The Dow closes higher before one day holidays 67% of the time, and three day holidays 75% of the time. It closes on Friday greater than Thursday 57% of the time, but when Friday closes weaker than Thursday, it also closes lower on Monday 73% of the time. This study was based over 100 years’ research.”

If anyone knows where you can still get a copy of the almanac, please let me know. I have the above information only in my notes.

© 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.
 

Read Joe's latest blog, "In and around Uruguay" to find out how he spends his free time away from trading.

TAP TRADE

Instant Income Guaranteed
Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 5th September 2016, we gave our IIG subscribers the following trade on TAP, which showed high premium levels at distant short strikes in a low volatility environment. We decided to sell price insurance as follows the following day:

• On 6th September 2016, we sold TAP October 21 2016 85P @ $0.85, ie. $85 per option sold, with 45 days to expiration, and our short strike 18% below price action;
• On 28th September 2016, we bought to close TAP October 21 2016 85P @ $0.30, after 23 days in the trade

Profit: $55

Margin: $1,700

Return on Margin Annualized: 51.34%

We have also added new types of trades for our IIG daily guidance, "no loss" propositions with unlimited upside potential, still using other people's money to trade. 

Philippe

Receive daily trade recommendations - we do the research for you!
Instant Income Guaranteed

  ♦  SIGN UP TODAY!  THIS IS WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

We review and supply the following:
 

• our daily fills (entries, exits)

• full real-time statistics of our weekly trades, closed trades for the current month, monthly statistics (detail and summary) since the beginning of IIG

• daily market commentary (indices/sectors, volatility indices, main commodities related to our trade)

• new trades for the following day

• comments on our open trades, with all relevant news

• updated earnings dates for our open positions

• full details (days in trade, days to expiration, underlying close and price change, etc.) on our open trades (classic trades, complex positions, remaining rolled trades and covered calls)

• active good till cancelled orders

• dividends for the stocks owned

We also supply quite a number of extra "slides" in the appendix which are quite useful for new subscribers: recommendations, answers and explanations on the most frequent questions, techniques for entering trades, historical trades and real life examples, broker information, etc.

© 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.
 

Traders Notebook Outright Futures Trading

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

Today I will show you a trade from the other day with our new service. As you can see below, we were looking for a few entries in several markets.

We were filled in the long Soybean Meal trade at 301.5 with an initial stop at 299.0 (the risk was $250 per contract traded). During the overnight session the market moved a bit, but everything was very quiet. At the open of the day session the market moved strongly lower but we were happy of not getting stopped out of the trade. Only ½ hour later the market was back up to our entry level and it climbed higher all day long. We took firsts profit at 304.0, then at 306.4 and finally at 308.3 as you can see on the daily chart below.

If you are interested in outright futures short term swing trading, you should check out our new service Traders Notebook Outrights.

Traders Notebook Outright Guide explains the Outright trading service from Trading Educators. It shows you around on the Outright Campus and how to use the information provided by the service.

© 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.

The Forex Trump Trade & Synthetic FX Pairs

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

In the Forex world, the RUB/MXN cross has become known as the Trump Trade. But is it really? And how would you trade it if your broker doesn't offer that pair? If you'd like to know or ever wondered what synthetic Forex pairs are and how to create them, check out Marco's latest article on our blog!  Read more.

© 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 2016 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 641 - September 23, 2016

“Destruction will come to the Traders of iniquity.” Master Trader Joe Ross

The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

BOND TRADING

Someone asked me recently, "Can you trade the T-Bonds with cluster breakouts? Can I use the same technique you have in your 'Day Trading' book?"

The answer to the first question is "Yes!" You can trade the T-Bonds with cluster breakouts. The answer to the second question is "No," T-Bonds are a different market with different movement. You would have to make some sort of adjustment to your objectives and to your exit points. In other words, you would have to change your management.

To tell the truth, I've never tried trading T-Bonds on cluster breakouts. Certainly, you would have to do the trading only when T-Bonds were making swings or trends on the daily chart. It would not be something I would try to do every day. I think it would be murder to trade bonds with cluster breakouts when the market was going sideways.

Here's the 60-minute T-Bond chart at a time the daily chart was trending. You be the judge.

© 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.

Some thoughts about trading

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

I’ve been asked many times: “Is there any meaning in trading? Does it serve a purpose? Does it produce anything of value to anyone?”

Those are good questions, and ones that I have frequently thought about over the years.

When I first began trading futures, a fair number of contracts actually ended up in a delivery — certainly more than we see today. Today only 3% of contracts result in delivery.

The economic and social justification for the futures markets is to provide a venue in which producers and users can hedge against excessive fluctuations in price. Price stability within the economy is seen as a desirable thing, and so it is. In effect, the hedger is seeking price insurance, and the speculator provides the insurance policy.

With hedging as its justification, speculation in futures serves as a way of providing liquidity, efficiency, and price discovery. The speculator serves as the person who is willing to take the risk the hedger wants to avoid. Without that justification, trading futures is nothing more than outright speculation.

Put options in the stock market provide the same thing by enabling an investor insurance against falling stock prices.

However, it is difficult to see how trading from a 1, 3, or 5-minute chart meets the criteria for providing liquidity and price discovery for the hedger. Does a producer or consumer need to hedge for only 1 minute? It is hard to argue on the basis of short-term intraday trading, that anyone is actually providing a social or economic benefit of any kind, other than to another day trader.

Whereas with longer-term trading it is easy to see the social and economic benefits provided by the speculator, or investor, it is virtually impossible to see that such benefits are derived from short-term trading. That renders day trading as nothing more than speculating. To that extent, the markets may have become giant gambling casinos.

That raises a question: What is the difference between the gambler and the speculator? True speculation is based on taking advantage of the realities of the market. Gambling is an attempt at trying one's luck.

Since trading is a business, the business-like speculator is willing to accept the risk of price fluctuation in return for the greater leverage that comes with that risk in the hopes of earning substantial profits. The business-like speculator makes his trading decisions based on knowledge gathered from information about the behavior of the underlying: Research, financial analysis, seasonality, historical and current trends, chart analysis, fundamentals, the market dynamics, and knowledge of those who trade it.

What about the gambler? How does he make his decisions?

The gambler makes his trading decisions on gut feelings, hopes, dreams of getting rich quick, tips from the broker, “inside information” from friends, opinions uttered in the financial news media, and from the improper understanding and use of indicators, oscillators, moving averages, and mechanical trading systems. In general, he is looking for a way to shortcut having to truly learn what is going on. He or she is in a hurry to make money. Unfortunately, most people who attempt to trade fall into this category. Many wannabe traders are gambling, and they don’t even realize it. Anyone who attempts to trade without essential knowledge of what the markets are all about and how they truly function, is gambling.

There is one more aspect to this subject. It has to do with morality. I am often asked if trading goes against the teachings of the Bible. Is it a sin to trade? Is it a sin to speculate in the markets? I have been asked this question numerous times even by church pastors. A friend of mine said it this way: “You did not pay to be born. Life is a gift that was freely given to you. The ways in which you repay God for your life is by using your natural talents to the best of your ability and constantly creating positive change in your life and the lives of others. This quest fulfills the meaning of life, to make the world a better place because you were here. What are your talents and abilities? What is the most important goal in your life? How do you exercise your talent on a regular basis to achieve that goal? How are you creating positive changes in your life and the lives of others? What is the legacy you will leave behind to show mankind that you ever existed? May God bless you and your efforts to become the best person and the most consistently profitable trader you possibly can be!”

In my own life, I use my trading to support a charity which works with the poor, for missionary work, and my local church. I believe that produces both economic and social benefits to the world in which I live.

© 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.
 

SLCA TRADE

Instant Income Guaranteed
Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 23rd May 2016, we gave our IIG subscribers the following trade on SLCA, right after exiting a trade on the same stock. With strong support around $22, we decided to sell price insurance as follows the following day:

• On 24th May 2016, we sold SLCA July 15 2016 18P @ $0.20, i.e. $20 per option sold, with 51 days to expiration, and 34% between price action and our short strike (difficult to make a trade any safer).
• On 3rd June 2016, we bought back SLCA July 15 2016 18P @ $0.10, after 10 days in the trade, for quick premium compounding.

Profit: $10

Margin: $360

Return on Margin Annualized: 101.39%

We have also added new types of trades for our IIG daily guidance, "no loss" propositions with unlimited upside potential, still using other people's money to trade.

Philippe

Receive daily trade recommendations - we do the research for you!
Instant Income Guaranteed
 

  ♦  SIGN UP TODAY!  THIS IS WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

We review and supply the following:
 

• our daily fills (entries, exits)

• full real-time statistics of our weekly trades, closed trades for the current month, monthly statistics (detail and summary) since the beginning of IIG

• daily market commentary (indices/sectors, volatility indices, main commodities related to our trade)

• new trades for the following day

• comments on our open trades, with all relevant news

• updated earnings dates for our open positions

• full details (days in trade, days to expiration, underlying close and price change, etc.) on our open trades (classic trades, complex positions, remaining rolled trades and covered calls)

• active good till cancelled orders

• dividends for the stocks owned

We also supply quite a number of extra "slides" in the appendix which are quite useful for new subscribers: recommendations, answers and explanations on the most frequent questions, techniques for entering trades, historical trades and real life examples, broker information, etc.

© 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.
 

This Week's Blog Post - Market Technicians

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook

Are you in the middle?  Most people are.  Read more.

© 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.

Drawdown is the norm, not the expection

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

In his article "Drawdown is the norm, not the exception", Marco writes about why being in a drawdown most of the time is nothing unusual or bad in trading and why it's not a good idea to try to avoid drawdowns altogether.  Read more.

© 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.

Learn all you need to know about AlgoStrats:FX during this presentation by Marco Mayer. What is it, what's the idea behind it, why it is different from other services and how you'd profit from AlgoStrats:FX as a subscriber!

Join AlgoStrats:FX today!
 

Feel free to email questions to This email address is being protected from spambots. You need JavaScript enabled to view it., or post it in our Blog or Forum.  Follow me on Facebook and Twitter!

© 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 2016 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 640 - September 16, 2016

This is the final day before the Ambush Trading Method goes up in price.  Grab a copy at the low current price while you still can!

The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

TRADABLE MARKETS

"Joe, would you analyze the attached futures for me?" So, here goes. This chart is easy to analyze using a combination of old-time, classical charting techniques, along with The Law of Charts and the Traders Trick Entry.

I've marked two gaps on the chart: a "breakaway gap" and a "runaway gap." The next gap up on the daily chart will bear the title "exhaustion gap," and should be the beginning of a correction or sideways area of distribution. Taking the Traders Trick Entry ahead of a breakout of the Ross hook is already showing a profit. 2 to 2.5 points should be taken so that you are paid to trade. Using that kind of management takes the pressure off the trade and off yourself as well. Then it is just a matter of where you now want to place your protection. Certainly you should not allow yourself to do any worse than breakeven on the remainder of your position. If I were trading a 10-lot in this situation, I would take 6 lots off at the point of the Ross hook, and move 4 lots to breakeven. However, that's me. You have to come up with your own management within your own financial, mental, and emotional level of comfort.

© 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.

START OUT STRONG

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

Trading is a challenging business. Not only is it tough to repeatedly pick one winning trade after another, it is also hard to control our emotions. Our emotions often get the better of us. Our expectations tend to influence how we feel as we trade, and when we doubt our abilities, we may have difficulty maintaining a winning attitude. One good approach to staying optimistic as you battle with the markets is to build up psychological momentum: start off ahead of the game, and build on that success. However, many traders set themselves up for failure. They start off making trading errors, and dig themselves into an emotional hole from which they have trouble climbing out.

The expectations you have regarding a trade can dictate how you approach it. If you feel you are about to make a mistake, then you probably will make a trading error.  You might have a perfectly good idea for a trade, for example, but you may feel so on edge that you have trouble taking advantage of it. It often starts out innocently enough. You have a good trading plan, but you make a few little errors. Perhaps you trade under less than ideal market conditions, or you set your stop too close to your exit point and get stopped out. Maybe you don't put up enough capital to make your trading plan work.

Whatever it is, you may make a few poor decisions, end up with a losing trade, and feel disappointed. Making one bad trade isn't a big deal, but what happens when you make another losing trade, and then another losing trade, and so on? At that point, you may feel that it is hard to get out of the minor slump you are in.

How can you set yourself up to win? First, realize that trading can be much like a self-fulfilling prophecy: you secretly believe that your trading plan won't produce a profit, and then you subtly self-sabotage your plan by feeling uptight, overly exacting, and constrained. It is vital to feel relaxed and carefree when you start out the trading day. Think optimistically.

Second, why not cheat a little? When you start the trading day, wait for an ideal trade, a trade you can afford to make which has a high probability of winning. If the first thing you do is make a profitable trade, even a small one, you'll feel good on your first trade, and then you can start building on your solid start.

When you set yourself up to win, you feel good, and this good feeling can help you trade more creatively. Instead of feeling uptight, you will trust your instincts and be more willing to risk capital. You won't make minor mistakes like risking too little capital, or placing your protective stop too tight and getting repeatedly stopped out. If you trade with wavering confidence, these minor errors can happen below your level of awareness, and at that point you may start mounting losses. Why set yourself up for a series of losers? Start off strong. Set yourself up for success, and build up the psychological momentum you need to trade with a winning mental edge.

© 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.
 

FMC TRADE

Instant Income Guaranteed
Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 3rd August 2016, we gave our IIG subscribers the following trade on FMC, right after a strong move up on earnings. With strong support around $44, we decided to sell price insurance as follows the following day:

• On 4th August 2016, we sold FMC September 16 2016 42.5P @ $0.45, i.e. $45 per option sold, with 42 days to expiration.
• On 11th August 2016, we bought back FMC September 16 2016 42.5P @ $0.20, after 8 days in the trade, for quick premium compounding.

Profit: $25

Margin: $850

Return on Margin Annualized: 134.19%

We have also added new types of trades for our IIG daily guidance, "no loss" propositions with unlimited upside potential, still using other people's money to trade.

Philippe

Receive daily trade recommendations - we do the research for you!
Instant Income Guaranteed
 

  ♦  SIGN UP TODAY!  THIS IS WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

We review and supply the following:
 

• our daily fills (entries, exits)

• full real-time statistics of our weekly trades, closed trades for the current month, monthly statistics (detail and summary) since the beginning of IIG

• daily market commentary (indices/sectors, volatility indices, main commodities related to our trade)

• new trades for the following day

• comments on our open trades, with all relevant news

• updated earnings dates for our open positions

• full details (days in trade, days to expiration, underlying close and price change, etc.) on our open trades (classic trades, complex positions, remaining rolled trades and covered calls)

• active good till cancelled orders

• dividends for the stocks owned

We also supply quite a number of extra "slides" in the appendix which are quite useful for new subscribers: recommendations, answers and explanations on the most frequent questions, techniques for entering trades, historical trades and real life examples, broker information, etc.

© 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.
 

Trading Idea

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook

Sorry, no trading idea this week.  Root canal is no fun!

© 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.

This Week's Blog Post - Markets Tend to Part the Foolish from their Money

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook

Sometimes you feel that you are able to throw caution to the wind. That is when you must be careful to not spit into it.  Read more.

© 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.

The price of Ambush Trading Method will increase to $1,299 on September 17, 2016.

Grab a copy at the current price while you still can!

Ambush Trading Method - All-Stars Portfolio

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

Here's an important update with Ambush Trading Method using the All-Stars Portfolio for small accounts E-Mini S&P 500 (ES), Australian Dollar (6A), Natural Gas (NG), 10 Year US T-Note (ZN)) trading one contract per market, except ZN where we use two contracts. For more information regarding the portfolio and long-term performance, see the Ambush Performance Page.

Last week was a difficult one for many traders, and as Ambush just made new equity highs at the end of August, how did it continue to perform? Here's the answer, play by play, Ambush had another crazy week making almost $5,000 performance in the small portfolio, making new all time equity highs across the board again:

As you can see Ambush killed it again in the markets, in the E-Mini S&P 500 alone there was one trade with a profit of about $2,000. That's also the answer to the question why we're raising the price of Ambush. The old price simply is in no relation to the crazy performance Ambush delivers anymore. This week alone, buying Ambush at the old price, it generated more than 5 times the profits of its costs trading the small Ambush All-Stars portfolio!

So don't miss your chance to get Ambush still at a bargain. Odds are price will increase further in the future and you will never be able to get on board at such a low price again.

The price of Ambush will rise significantly on September 17th, this is your chance to get it at a bargain price!

© 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.

On Vacation

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

I am having a great vacation traveling in South Germany to enjoy the last days of the summer and to visit family and friends. We started in Munich for a weekend, then to Heidelberg, and are now enjoying the last week in Black Forest hiking and mountain biking! Fortunately, we had two weeks of nothing but sunshine! Here's a few of my favorite pictures while on vacation.

Learn all you need to know about AlgoStrats:FX during this presentation by Marco Mayer. What is it, what's the idea behind it, why it is different from other services and how you'd profit from AlgoStrats:FX as a subscriber!

Join AlgoStrats:FX today!
 

Feel free to email questions to This email address is being protected from spambots. You need JavaScript enabled to view it., or post it in our Blog or Forum.  Follow me on Facebook and Twitter!

© 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 2016 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 639 - September 9, 2016

"Wisdom is found on the lips of a Trader who has understanding, but a rod is for the back of a Trader who is devoid of understanding."  Master Trader Joe Ross

The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

MARKET CONDITIONS

Quite often I am asked about what condition a market has to be in to be tradable. Sometimes it is easier to show with a picture when a market is not tradable other than to be a very short-term scalper.

When prices have a "boxy look to them, the market becomes very difficult to trade. What causes a boxy look? If you look closely at the chart, I will attempt to explain.

Notice the following:

• Volume at 8:30, the opening minute is only 2,417. 3 minutes later the per minute volume is 4,193, an acceptable amount it would seem. But is it? Volume does not take into consideration liquidity. Liquidity consists of both decent volume and good participation, meaning buyers are hitting the offer and sellers are hitting the bid. The volume of 4,193 might have involved as few as two traders.
• Prices tend to make multiple exact highs and lows, giving the chart a boxy look.
• Opens and Closes tend to cluster at the same level.
• Prices do not look much different from the way they looked in the early morning Globex trading.

If we go to a 5-minute chart things do not look a whole lot better.

Volume in the first 5 minutes of trading was 11,580, which amounts to an average of only 2,316 contract/minute. Not a very healthy volume for doing much of anything. The 5 minute chart displays the same type of problems we saw on the 1 minute chart. Double highs and lows, and clusters of Opens and Closes. The "boxiness" of the 5 minute chart is a sign of lack of liquidity. All this means that traders are not trading. The action that is going on is limited to a few traders who are literally picking each others´ pockets.

The e-mini S&P 500 has often been as you see it on the charts above. The situation goes back on and off for at least 10 years. Is it any wonder that 90% or more of newbies are getting their heads handed to them in this market? Unless you go out to the larger time frames you are facing a very difficult situation.

© 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.
 

DON'T CATCH A BAD MOOD

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

Winning traders are eternal optimists. They must be to survive. Markets are constantly changing. What works in one market doesn't necessarily work in another. You can't complacently expect to perfect a trading strategy or method at a particular point in time and expect it to work forever. But many traders hold these unrealistic expectations. It's common to hear even a seasoned trader complain, "It's all a sham. There's no way to make money in trading anymore. The amateurs have left and there's no way to take profits from professionals." It can shake your confidence to hear such a bleak outlook. It can make you feel as if you might as well just throw in the towel and put your money in a mutual fund. But if you want to master the markets and take home huge profits, you can't let pessimists sway you. Don't catch their bad mood. Stay optimistic, sharpen your skills, and remain ahead of the crowd.

Seasoned traders have seen markets change over and over. They'll warn you that to stay profitable, it's necessary to continually search for new ways to trade profitably. This fact of trading can provide comfort when you hear your friends complain about how "it's all changed" and there's no longer a viable way to make a profit.

Sure, it's not going to be easy, but it's always possible. Acknowledging that trading is hard can actually soothe you. If you know that it's not your fault that market conditions change, then there's no reason to feel pessimistic and beat yourself up. It's not your fault. You didn't do anything wrong. Change is merely the nature of the beast. Your job is to avoid giving into pessimism. Instead, you must continually pick yourself up after being thrown down and courageously face market challenges with a fighting spirit.

An optimistic attitude alone isn't going to guarantee success, but it's an essential prerequisite for continuing to stay profitable. To stay on top, you're going to have to think creatively and you might have to change the way you've been doing things. Maybe you can't make as much profit as you were used to making on merely a few trades. Perhaps, you have to make more trades or just expect less per trade. Maybe you have to move into new sectors or into trading commodities or bonds. Again, it's not going to be simple, but with effort and practice, you can learn to adapt your trading style to new circumstances, instead of catching the pessimism that is rampant when the majority of traders are losing.

So when you hear a novice or old-timer complain, "it's impossible to make a profit," don't let it shake your resolve. Don't catch a bad mood. Everyone is different. You're different from other traders. You have your own resources and your own style. Maybe your friend with a bad attitude is right. Maybe he or she can't trade the markets anymore. Maybe his or her account is too big or too small. Whatever the issue is, don't make it your problem. Just go your own merry way and keep searching for a new set of tools that will make you profitable. They are out there. All you have to do is persistently search until you find 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.
 

CHK Trade

Instant Income Guaranteed
Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 8th May 2014, we gave our IIG subscribers the following trade on CHK, which was in an established uptrend. We decided to sell price insurance as follows the following day:

• On 9th May 2014, we sold CHK June 06 2014 28P @ $0.45, i.e. $45 per option sold; the short strike was slightly below price action (4% away) but below the last support level, with only 27 days to expiration.
• On 13th May 2014, we bought back CHK June 06 2014 28P @ $0.21, after 4 days in the trade.

Profit: $24

Margin: $560

Return on Margin Annualized: 391.07%

We have also added new types of trades for our IIG daily guidance, "no loss" propositions with unlimited upside potential, still using other people's money to trade. 

Philippe

Receive daily trade recommendations - we do the research for you!
Instant Income Guaranteed
 

  ♦  SIGN UP TODAY!  THIS IS WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

We review and supply the following:
 

• our daily fills (entries, exits)

• full real-time statistics of our weekly trades, closed trades for the current month, monthly statistics (detail and summary) since the beginning of IIG

• daily market commentary (indices/sectors, volatility indices, main commodities related to our trade)

• new trades for the following day

• comments on our open trades, with all relevant news

• updated earnings dates for our open positions

• full details (days in trade, days to expiration, underlying close and price change, etc.) on our open trades (classic trades, complex positions, remaining rolled trades and covered calls)

• active good till cancelled orders

• dividends for the stocks owned

We also supply quite a number of extra "slides" in the appendix which are quite useful for new subscribers: recommendations, answers and explanations on the most frequent questions, techniques for entering trades, historical trades and real life examples, broker information, etc.

© 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.
 

Trading Idea

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook

Let's check out a spread trading idea using the Softs at the ICE  going long the March 2017 Sugar and short the May 2017 Sugar.

Traders Notebook - Receive Daily Trade recommendations
Sign up today!

© by Andy Jordan. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.

This Week's Blog Post - Becoming a Consistent Winner

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook

Don't underestimate your time it takes to become a profitable trader!  Read more.

© 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.

The price of Ambush Trading Method will increase to $1,299 on September 17, 2016.
Use coupon code "ambush10" to get an additional 10% off the current price.
Coupon is valid only through September 16, 2016 on the current price. No exceptions. 
Coupon is valid for the Ambush only. It is not valid for the Ambush/Stealth combo.

Grab a copy at the current price while you still can!

Ambush Trading Method - Update

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

As Ambush continues this years gold rush across many markets, we did another update of our Futures Performance Page.

Additionally to up-to-date reports for each single market, there's three sample baskets of portfolios showing you the power of diversification trading Ambush in multiple markets!

Here's one of them for small account ($25k+) trading ES, 6A, NG and ZN:

The price of Ambush will rise significantly on September 17th, this is your chance to get it at a bargain price!

© 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.

AlgoStrats.com - AlgoStrats:FX

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

Learn all you need to know about AlgoStrats:FX during this presentation by Marco Mayer. What is it, what's the idea behind it, why it is different from other services and how you'd profit from AlgoStrats:FX as a subscriber!

Join AlgoStrats:FX today!
 

Feel free to email questions to This email address is being protected from spambots. You need JavaScript enabled to view it., or post it in our Blog or Forum.  Follow me on Facebook and Twitter!

© 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 2016 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.