Hi Gold
thanks very for your post and sorry for the delay in my reply.
You do understand the difference between Arbitration and Position trading? What about cyclical based entry, using short-term money management?
As i mentioned i have only very recently found the spreading trading approach to the markets. I do understand arbitrage. By cyclical based entry, i assume you mean trades based on observable cycles within the instruments you are trading, e.g. seasonal cycles. By ST money management, i assume you mean bracketing your position in the markets with mental (or actual depending upon how you have actually taken a position in the market) profit taking and stop loss orders. If my assumptions are right then, then i can confirm that this is exactly the kind of trading i am interested in!
Joe Ross's system can easily be adapted to do that. Let me explain. You still have to do the same amount of work. There are no shortcuts there. You have to select a security and the proper time to enter. You have to be confident that you will stick with your order when you place it. All of that is the same. The difference is that you will have many more successful trades if you are only looking for a short term gain, about a 100% of margin, and don’t give them back waiting for the once or twice a year Jessie Livermore/ Stanley Kroll, big score.
This is very encouraging to hear. When you say 100% margin what exactly do you mean, leverage?
What you do is enter seasonal trades with a technical bullish signal. Keep close stops. Two or three days later, put in a “target limit order,” less than a thousand dollars. When you choose your entries right, you will catch the first seasonal thrust, and get hit almost all of the time. This is an example of short term seasonal trading. It is not about when you get in, it is all about when you get out.
Sounds good. Consistency, limiting risk, increasing the odds in your favour and therefore your profitability is the way to make it in this business. I can say i very much agree with your last line!
Google “Seasonal spread traders library.”
Thanks for the pointer to your list. I assume i've got the right one - it's on US amazon site and has 4 books on it?
Having traded before you must be aware that when prices move, they move in a giant M. In bull markets the second crest is higher. In short term trading off of a seasonal bottom, you are trying to catch the first crest’s peak with a limit order.
I understand what you are saying, but it doesn't mean much to me in isolation. No doubt it will when i have read a little more on seasonals.
Yes! Ross’s has the ONLY book that teaches trading using “close only charts.” You have to have this, you need to know what everyone else knows.Make it back in one trade.
Again, that's great to hear. I’m surprised to hear that (and glad you told me) as even to a spread novice like me, it seems to make perfect logic to chart the actual spread you are trading! As you say as long as the book is useful, the price tag is neither here nor there (within reason!). I have also been looking at his remote learning courses with his colleague Andy, and the 3 day course with Ross himself. Have you even considered it?
No. Whenever i right this it changes the name of the hyperlink. So that you know exactly which site i mean i'll break up the address so that it cannot treat it as a hyperlink. I mean Bob McGovern on www. spreading .com .I don’t know if he’s a broker.
Try: Moore’s Research -
Jerry Toepke's Weekly Spread Commentary[/b][/FONT][/SIZE][/color]
Thanks. I’ve already come across this and it looks a great resource. There’s plenty on here for the future when I have define exactly what spreads I’m going to be trading. Have you bought any of their reports/books or subscribed? If so how do you find it?
They what looks to be a very good book which I’m considering buying too.
Regards
Syn
