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Andy, what account size do I need to start trading spreads? Andy: This is one of the “most popular” questions I answer almost every week. But without knowing the person, his/her trading abilities or financial situation, I am not able to give a precise answer. Without knowing all the...

Andy, can you tell me something about the winning percentage? To me it seems any trading method with a winning percentage of over 80% is a real good method? Andy: The winning percentage alone, without all the other statistical figures, doesn’t tell you anything about the trading method. Let...

Hi Andy, should I be looking at fundamentals? Andy: There are a number of reasons that cause many traders to favour technical analysis over fundamentals. For starters, fundamental traders tend to be commercial firms; that is, they are involved in the actual production or consumption of a...

Andy, do you typically use the 8-day low as a trail stop in your spread trades? If not, what's the significance? I use it in addition to my "natural trailing stop". Sometimes the place for my natural stop (low of the last hook for example) is too far away and I need something else, so I use...

Hi Andy, how do you handle “targets”. Very often the market comes close to my first target, but doesn’t reach it. The next day I get stopped out with a loss. Am I doing something wrong? I know, it is against what you can read in most trading books, but maybe you should take your profits...

Andy, how much time do I need every day for spread trading? Andy: The trading itself doesn’t need much daily time. Approximately 10 – 20 minutes are required to check the charts each day, looking for new entries, checking your open positions, and giving your orders to the broker. Looking...

Hi Andy, can you give me some ideas about how to calculate the risk for my spread trades? Calculating the risk is a very important factor in trading. You can have the best trade selection but still lose money if you are sloppy in money management. How to calculate risk depends a lot on your...

Hi Andy, can you tell me what happens at the rollover? Is it something that happens automatically, or do I have to do something about it? The rollover is the time when most traders get out of one month to get back in into another month. On the rollover, the volume moves from one month into...

Hi Andy, in your spread recommendations you give us a time window (i.e. 01/10 - 02/22) whenever the trade is seasonal. Do you recommend to enter the trade only between these two dates? Seasonality doesn't always start and end at a precise date, and therefore the seasonal time window can be...

Hi Andy, we are almost done with 2007. Any idea how I can get ready for 2008? If you have a trading journal, there is plenty for you to do. If not, you should get one for next year. Here is what you can do while going through your trading journal: - Look at the big winners and the big...

Hi Andy, is it dangerous to take trades in related markets at the same time? Andy: Yes and no! As long as you know the markets are related, and you know what can happen if something goes wrong, everything is fine. The problem comes if you don’t know about the relationship of your spreads...

Hi Andy, can you give me some idea of how much money I should risk on each trade? This is really a tough one because I do not know enough about you, your trading style, or the money you trade. But I will try to give you some general ideas. I personally feel the most logical way is to use a...

Hi Andy! After giving some spread seminars together with Joe, what do you think is the most difficult part for your seminar attendees to understand? Spread trading is a bit different from straight futures trading in many points. It is a more “pure” form of trading. But the most difficult...

Hi Andy! I just wiped out for the second time. Am I some kind of trading freak? Most successful traders failed at some point in their careers and wiped out their account. Many traders lose because they do not understand the nature of the decision-making process, which should be based on...

Hi Andy, I know how to calculate and how to chart an equity spread like long Soybeans and short Soybean Oil. I just multiply each side with its unit value in US$ (50*S – 600*BO) and I get an equity chart. But is it possible to give a limit order for equity spreads? Normally you cannot give...

Hi Andy, I am trading a really small account and very often I can trade only one contract. What would you recommend I do? Trading only one contract is really tough. You are extremely limited in managing your trade. You have only two choices: In or out of the trade. Trading multiple contracts...

I am very sorry, but I just don't find the time to post any new trades at the moment. I hope this will change soon. Happy trading to all of you, Andy

I am very sorry, but I just don't find the time to post any new trades at the moment. I hope this will change soon. Happy trading to all of you, Andy

Trading Idea 06/25 I am looking at the spread long December Soy Meal and short Noveber Soybeans (100*SMZ7 - 50*SX7). http://share.esignal.com/groupcontents.jsp?folder=&picture=SM-S_25062007.gif&groupid=707 The spread broker out of it's 1-2-3 low. Entry was on Friday but would be still...

Trading Idea 06/25 Long the bonds at 106^17, suggested stop at 105^17. First target would be 107^06. No entry on a gap open. Open outcry session only. http://share.esignal.com/groupcontents.jsp?folder=&picture=ZB_25062007.gif&groupid=707 Happy trading, Andy