Edition 844
August 28, 2020
ANOTHER REMINDER ABOUT ANDY JORDAN'S NEW PRODUCT - CHECK IT OUT!
Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete and Traders Notebook Seasonal Spread Trading (TNsst)
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Introducing: Traders Notebook Seasonal Spread Trading (TNsst)
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© 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.
Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete and Traders Notebook Seasonal Spread Trading (TNsst)
Trading Idea:
This week, we're looking at long -500*GFX20-50*ZCZ20+2*400*LEJ21: short 1 November 2020 Feeder Cattle, short 1 December 2020 Corn, long 2 April 2021 Live Cattle (Globex).
Today we consider a so called “Cattle Crush” spread: short 1 November 2020 Feeder Cattle, short 1 December 2020 Corn, long 2 April 2021 Live Cattle (Globex). Unfortunately, we have to leg in/out of the spread. Because we are using a mental stop on this spread trade, I recommend a risk per spread contract of approx. $1,000 - $1,500.
Do you want to see how we manage this trade and do you want to get detailed trading instructions every day? Please visit our website for additional information: https://www.tradingeducators.com/advisory-services/traders-notebook
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Join Andy's trading team 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.
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Escaping Congestion
From late April, until early November, 2018 China Lodging Group (HTHT) took a series of beatings in the marketplace. Its shares were trashed from a high of $49.08 to a low of $24.64, on the weekly chart. From that low point, prices erratically rose and fell until they formed an extended trading range that had been going on since mid-May of 2019.
One lesson I learned long ago was to not attempt entering a trade from 1-2-3 formations when prices are in consolidation. What I need to see is 1-2-3 formation followed by a Ross Hook. At that point I will attempt a Traders Trick Entry ahead of a violation of the point of the Hook.
There were any number of ways to have traded this situation:
- Buy HTHT as an investment.
- Sell a Put at a Strike Price below your entry.
- Do 1 and 2.
- Buy an in-the-money Call.
- Buy an out-of-the-money Call.
- Create a Debit spread: Buy a Call at the nearest strike price and Sell a Call at a higher Strike Price, to help pay for the Call you buy. (income producer)
- Create a Credit spread: Buy a higher price Call and Sell a Call at the nearest strike price. (income producer)
Those are only a few of the ways you might want to take advantage of prices escaping a trading range. Whatever you decide to do, keep it in balance and coordinated to your personal 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.
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Six Steps to Becoming a Successful Trader
1. Focus on trading vehicles, strategies, and time horizons that suit your personality.
2. Identify non-random price behavior.
3...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.
Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Instant Income Guaranteed - VCRA TRADE
On 28th July 2020 we gave our Instant Income Guaranteed subscribers the following trade on Vocera Communications, Inc. (VCRA). Price insurance could be sold as follows:
- On 29th July 2020, we sold to open VCRA Aug 21 2020 20P @ 0.15, with 22 days until expiration and our short strike about 36% below price action, making the trade particularly safe.
- On 29th July 2020, the very same day, we bought to close VCRA Aug 21 2020 15P @ 0.05.
Profit: 10$ per option
Margin: 400$
Return on Margin annualized: 912.50%
Philippe
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.
Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Trading the Russell 2000 like a Pro
One of the top equity markets during the last couple of months has been the Russell 2000 Index for Ambush Traders. Whether they've been trading the regular RTY contract or the M2K Micro version of the Russell, profits just kept on flying in!
Here's a daily chart of the Russell 2000 (RTY), showing the last couple of months of trading. As you can see this market did what markets do 90% of the time, which is why Ambush is such a great trading method. Markets move in boxes/ranges, break out for a few days and then start moving in the next box. The Russell has been boxing a lot lately and so Ambush Traders had a lot of fun!
Here are the results of the trades shown on the chart, trading one RTY contract:
Yup, that's over $10k profits, meaning you'd have made about 1/10th of that trading the Micro M2K contract:
Notice that all of these are actually day trades, even though they're based on end-of-day trading decisions. Ambush is exactly that, an easy way to day trade not for a few tiny ticks with a lot of stress but placing your trades once a day, walk away, and go for the big intraday moves!
Ask yourself whether you want to miss out on such trades or at least not be aware of the signals while trading these markets.
I don't think you want to, so if you didn't already, join Ambush Signals today! For traders who prefer to trade the Micro contracts, we have a special Mini-Version of Ambush Signals that's a lot cheaper.
Happy Trading,
Marco
The Ambush Trading System was created in 2007 by Marco Mayer. Since then it proved itself in the markets for over a decade and did so with exceptional results. It's the only trading system we're aware of that is still going strong after so many years. While Ambush is a day trading system, meaning you will always enter and exit on the same trading day - you don't have to sit in front of your trading screen. You simply place your entry orders when the trading session starts and come back at the close!
© 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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