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Edition 738 - August 3, 2018

trading education

 

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. 

 

Master Trader Joe Ross shares trading education

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.

Joe Ross shares trading success with Traders Trick Entry and Ross Hook trading methods example trading education

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.

 

 

Master Trader Joe Ross shares trading education

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.

 

Philippe Gautier shares his Instant Income Guaranteed trading education

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

Joe Ross and Philippe Gautier share trading success with Instant Income Guaranteed options selling example trading education

Receive daily trade recommendations - we do the research for you.

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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. 

 

 

Andy Jordan Educator for Futures Trading Strategies on Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook

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.

 

 

Marco Mayer shares trading success with Ambush Trading Method example trading education

by Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading MethodAmbush 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).

Marco Mayer shares trading success with Ambush Trading Method example trading education

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!

Marco Mayer shares trading success with Ambush Trading Method example trading educationMarco Mayer shares trading success with Ambush Trading Method example trading education

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.

 

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Note: Unless otherwise noted, all charts used in Chart Scan commentary were created
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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.

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.