Edition 944
August 12, 2022
"I do not take a single trading magazine, nor do I read a business newspaper, and I am infinitely happier for it." Master Trader Joe Ross
Dear Traders,
Master Trader Joe Ross passed away September 2021, and prior years he was continously sending me folders filled with Chart Scan and Trading Articles. The emails would be titled "More to follow" and I would reply, "Keep'em coming". I am calling these lessons "hidden vault" material because if Joe were still alive, this is exactly what would be shown in your inbox every Friday morning. This is not regurgitated material; this is new stuff written by Joe or as he would refer to it with such passion, "This is good stuff".
As we continue to receive newsletter sign ups, new students from every continent will start to learn trading Joe's way especially in this challenging market. This is where he would reinforce to his students, yes, that includes you, that learning to trade is possible even in this environment, "A chart, is a chart, is a chart". His writings will stand the test of time to provide teaching lessons and guidance.
The proceeds of Trading Educators will continue to support Joe's wife, Loretta, of 62 years of marriage, which she is our number one priority. We thank everyone with continued support and prayers for her well-being in late stages of dementia.
As expressed in the past editions, the trading world has lost a unique and passionate trader and his material will continue to be relevant. Let's start learning to trade Joe Ross' way with our future Chart Scan publications. I am here to help, so feel free to email me with any comments, questions or concerns.
All the best,
Martha Ross-Edmunds
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Correlation
Hey Joe! It is known that markets are manipulated by insiders in order for them to earn money which means most of the retail traders lose their money. However, this raises a couple of questions. How then markets can be correlated? If they are mostly manipulated how it is possible that e-mini Nasdaq highly correlates with e-mini S&P 500, e-mini Russel 2000 etc.? The insiders would have to manipulate these markets exactly the same way on purpose wouldn´t they?
The second question is how is it possible for the above indexes (their price) to be calculated by stocks they include if the indexes are manipulated? I simply do not believe that price of an index follows real value stocks it includes. However, on internet you read for example e-mini Nasdaq index is counted from the stocks it includes. Some of the stocks go down, some up and if you add up all of them together you get the price of the index. However, if the market is being manipulated, this looks like nonsense. I think the index is an alone entity and the reality is that it does not reflect movement of prices of stocks it includes. However, if I am right, how is it possible that markets are correlated?
The above was sent in as two questions, but I’m going to answer it as one.
When you are talking about manipulation, you must specify which time frame is in question.
Most insider manipulation takes place intraday—in and out in the same day. Insiders in general, are not trend traders. They seek control of prices to the greatest extent possible. Many of them stand aside when prices begin to trend. On a daily or greater basis, markets trend only by way of pressure from the public. When the public is in control, the insiders restrict their day trading considerably, trading only around the open for the most part. They know they are not in control and they are painfully aware that the public is erratic and emotionally out of control. To an insider public control of prices is of the utmost danger.
Overall, the stock indices are going to be mostly correlated over the long-term, but not necessarily over the short-term. However, even intraday, traders of one index watch the other indices for clues as to which way prices will go. For example, if you watch the TF, you will see it often moves pretty much on its own, since it represents small stocks only. That is what is happening as of this writing. One can hardly say that right now, NQ and ES are doing anything remotely like the TF and the YM. Currently, the indices are not correlated at all.
You said: “Some of the stocks go down, some up and if you add up all of them together you get the price of the index.” Absolutely not so, unless you are talking about the un-weighted NQ. The NQ in the futures market is weighted, as are the TF, the YM, and the ES.
You must also keep in mind the way the indices are weighted. They are not a strict reflection of price movement. More weight is given to some stocks than to others. That is why currently the YM is moving up considerably compared with the NQ. Foreign buying by Europeans and Asians into the most heavily weighted stocks is causing a melt up in the YM and the GX (DAX), all the while, TF is moving up because those stocks are more affordable. TF doesn’t look like any of the other indices.
You are making some wrong assumptions about correlation and manipulation. Long-term the markets reflect the reality of what people are willing to buy or wish to sell. But short-term, manipulation is rampant throughout the day, particularly during the first 20-40 minutes of trading.
© by Joe Ross. Re-transmission or production 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: Success Killing Plagues
I received permission from CEO Glen Larson of Genesis Financial Technologies to reprint an article he wrote. Years ago I was one of Glen's first customers. It has been a pleasure to work with him and his staff since way back in the 1980s. Most of the charts you see here in Chart Scan come from Trade Navigator, the charting and trading program created by Genesis Financial Technologies. Glen writes:
"This month's success killing plague is known as 'So many markets, so many opportunities, so little...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.
Where are my links to Joe Ross' two free eBooks? Not received - send an email for the links!
Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Etsy Inc (ETSY) Ratio Spread Trade
Ratio spreads can be extremely safe trades.
On 21st June 2022, we entered ETSY Jul 29 2022 +60P/-2*55P for a credit of 0.65 par 1*2 spread. Our breakeven price at expiration was about 45$ below price action!
On 20th July 2022, we closed half our position for 0.05, keeping 60$ of the initial credit.
On 29th July 2022, the second half of our position expired worthless. At that time, ETSY was trading more than 54$ above our breakeven price.
Our annualized return on margin was 61.91%.
Philippe
65% OFF - NOW is the Time!
Join Master Trader Joe Ross' Instant Income Guaranteed (IIG) program which rolled out on December of 2014.
This program will continue until September 30, 2022 so take advantage to learn IIG's option strategies with Philippe Gautier's master mind within his detailed guidance.
Use coupon code during checkout: iig65
Includes 2-Months FREE of Detailed Guidance
(BONUS - Starts after completing Joe's online courses.)
IIG Performance Record Updated! Check it out: Performance Track Record
© 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 Andy Jordan
Educator for Spreads, Options, Swing, and Day Trading, and Editor for 20+ years with Traders Notebook, daily advisory newsletter.
Trading Article: Practice
If you play tennis once a week against an opponent who plays tennis five times a week, who is likely to win? If you play chess or backgammon twice a year against someone who plays every day, who will mostly likely win?
You don't have to start trading real money right away. Whenever someone goes...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.
Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Ambush Traders Again in a Gold-Rush: Catching Reversals in the Gold Market
One of the top markets over the last couple of months for Ambush Traders has been the gold market. Whether it's the Gold Future, Micro-Future, or XAU/USD forex pair, Ambush Traders are in a crazy gold rush!
Here are the results of these trades, trading only one Gold Future (GC) contract:
Yup, that's almost $20k profits with almost no drawdowns in between within just a couple of months! Looking at the statistics you can see that we got a profit factor of over 3 and the maximum drawdown was just about 20% of the profit!
Now the Gold Future is a large contract and not suitable for small accounts. But you can do these trades also in the E-Micro Gold which is just 1/10 the size or the XAU/USD forex pair.
That's what makes Ambush Signals so great, it works with any account size offering three subscription models depending on your goals.
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!
Don't miss the next Gold trade and join Ambush Signals today!
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.
Join Master Trader Joe Ross' Instant Income Guaranteed (IIG) program which rolled out on December of 2014.
This program will continue until September 30, 2022 so take advantage to learn IIG's option strategies with Philippe Gautier's master mind within his detailed guidance.
NOW is the time!
65% OFF
Use coupon code during checkout: iig65
Includes 2-Months FREE of Detailed Guidance which starts after completing Joe's online courses.
Check out IIG's Performance Track Record
We hope you will join our IIG trading team!
Even though Master Trader Joe Ross passed away September 7, 2021, his trading knowledge of over 60 years will carry a trading legacy and will live on. As you learn about Joe Ross and understand what he was trying to teach his students, you will find that within his writings, he had a very special gift. Most importantly, it was his students that kept him striving to provide comprehendable trading material to actually teach traders and become independent, to rely on anyone, but themselves.
Joe Ross has been trading and investing since his first trade at the age of 14, and is a well known Master Trader and Investor. He was able to survive all the up and downs of the markets because of his adaptable trading style, using a low-risk approach that produces consistent profits.
Joe Ross is the creator of the Ross hook™, and has set new standards for low-risk trading with his concepts of "The Law of Charts™" and the "Traders Trick Entry™." Joe was a private trader and investor for much of his life, but a serious health situation in the late 80's caused him to shift his focus, and that is when he decided to share his knowledge. After his recovery, he founded Trading Educators in 1988, to teach aspiring traders how to make profits using his trading approach.
Joe Ross has written twelve major books and countless articles and essays about trading. All his books have become classics, and have been translated into many different languages. His students from around the world number in the thousands. His file of letters containing thanks and appreciation from students on every continent is huge: As one student, a successful trader, wrote: "Your mastery of teaching is even greater than my mastery of trading".
Joe Ross holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles. He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk, Virginia. He is listed in "Who's Who in America." After 5 decades of trading and investing, Joe Ross still tutors, teaches, writes, and trades regularly. Joe is an active and integral part of Trading Educators. He is the founder and contributor of the company's newsletter Chart Scan™.
Joe's philosophy for helping traders is:
"Teach our students the truth in trading - teach them how to trade."
"Give them a way to earn while they learn - realizing that it takes time to develop a successful trader."
Joe sets forth the mission of Trading Educators as follows:
To show aspiring futures traders the truth in trading by teaching them how to read a chart so that they can successfully trade what they see, and by revealing to them all of the insider knowledge they need in order to understand the markets.
To enable them to trade profitably by training them to properly manage their trades as well as their mindset and self-control.
To accomplish our mission for our students we educate them so that they know and understand:
Benefits for our Clients:
- Where prices are likely to move next.
- Independence from complicated trading methods, magic indicators, and black-box systems.
- Independence from opinion, anyone's opinion, including their own.
- Independence achieved through knowing how to read a chart.
- Independence through having knowledge of insider actions.
- Independence achieved by taking holistic and eclectic approaches.
- Independence coming from knowing how to manage both the trades and themselves.
- Independence because they understand and trade what they see.
- Independence because they have learned how and why prices move as they do, through studying the truth in trading and the truth about markets.
Students learn only proven methods and techniques, which helps them to preserve capital and create more consistent profits; they are offered simple methods that will assist them to earn while they learn.
- They learn to work smarter and more effectively.
- They learn to treat trading as a business; we offer no Holy Grail or magic systems.
- They learn to adapt to changing market conditions.
- They learn a systematic approach to trading rather than a mechanical system for trading.
- Why prices will move there.
- Who and what cause prices to move.
- How far prices are likely to move when they do move.
- Their own role in the movement of prices..
- How to take advantage of the knowledge they receive.
- How to properly manage and exit a trade which they have entered.
- How to manage themselves and acquire the discipline needed to become successful traders.
Read some personal testimonials which Joe has received.
WE APPRECIATE YOUR TRUST IN US AND THANK YOU FOR YOUR BUSINESS!
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A WEALTH OF INFORMATION & EDUCATION:
Joe Ross-Trading Educators' popular free Chart Scan Newsletter has been published since 2004.
Note: Unless otherwise noted, all charts used in Chart Scan commentary were created by using Genesis Financial Technologies' Trade Navigator (with permission).
Legal Notice and Copyright 2022 Disclaimer - Published by Trading Educators, Inc.
Chart Scan is a complimentary educational newsletter.
This newsletter and future publications are created to keep Master Trader Joe Ross' lessons readily available to traders that want to learn and improve their skills. My father passed away on September 7, 2021 and will be greatly missed, but his writings will stand the test of time for generations to come. Take it to heart and learn from the best through Master Trader Joe Ross' trading examples and articles which have impacted thousands of traders on every continent for over 60 years.
Happy trading,
Martha Ross-Edmunds
© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent
