Supply and Demand Letter Sample

Congratulations on looking deeper into our newsletter. We are extremely happy to have this caliber of teaching to share with you. As you will see from the samples, the Supply and Demand letter is written in a very readable fashion. It chronicles Jon's trades, warts and all. We are not showing just the winning trades, but mistakes and revisions to plans as well. There is a full newsletter from May 10, 2017 at the bottom.

There is not another newsletter on the market quite like this...

The Supply and Demand Letter has over 50 back issues. It was first written as preliminary lessons for attendees of a recent seminar in 2016.

A $5000 trading account was funded to trade at the onset of this newsletter in 2016 as a way to test and prove the trading methods being taught. The trades are shown and discussed throughout these newsletters. This trading account has grown into 6 figures in this short time! If there is interest in the back issues, we may compile them in book form in the future.

Here are some tidbits from the Supply and Demand Letter for you to sample.

Enjoy,

Cody Jones

Issue 7

There is often so much to say about a chart, the unseen and unsaid things that would make for another 20 pages a week- however, I think the main point I am triying to make is that simple mechanical systems work, it's where, in my view Gann made his money...The more complex theories, astronomic calculations, squares, square roots, cube roots, planetary alignment, etc. can all work in one form or another to give some confirmation, sometimes they are very accurate..but for me they have become overlays, over the top of Gann's Mechanical System.

Now its interesting that depending on your rules you may have left your stop above the swing, in which case, you would still be in...This is why your rules are so important. I am trying to demonstrate the need for you to assess your own mindset in regard to your rules. As you become more confident and no doubt have larger positions you have more options..In any case we were given another entry on the outside reversal bar...(regarding the supplied charts). The God of financial Return was generous again last night and I have moved my remaining stop down to behind todays bar. What I am demonstrating here is how to make consistent profits, you may end up in and out of the market, but you are rewarded for your effort.

Issue 10

Trading can be a very complex business, or it can be simple. That is for you to decide, however what I will say is that for me the simpler I make it, the less I have to second guess and the more profitable I have become. I have studied with, and material by many amazing people, some now gone, some still kicking. I have a wall of books and a hard drive of files relating to their work, which I have applied with varying degrees of success.

Now the important thing here is not the volume of material you own or have read, or the people you have learned from, it is that one mans’ million-dollar system may lose another man a million dollars! How is this so?

I do not think this is related to the system but to our subconscious ownership of it. If we do not have buy-in to the development of a system it becomes very hard to apply its rules. Certainly consistently, and the more complex it becomes the harder it becomes. I think that is what GANN was trying to give us, a simple mechanical system that would give consistent results whilst we continued our study.

Issue 11

The Aussie opened nicely and moved down on Monday which was a holiday in the US. However, when it stopped and moved back through the open, I moved my stops down behind Fridays bar to protect profits. I mentioned last week a low may bin in place here for some sort of bounce.

I was dutifully stopped out of my positions in the session- so now we wait. (For those following the 3 contract system these 6 shorts have yielded at least 10K in a month. If you are trading a 20K account that's a 50% return in a month, I challenge you to find a fund that can do this.!)

Issue 13

This is about where the fun ended !! Thursday turned into a nasty down bar which stopped us out, before filling our swing GAP and promptly finding support at 66% of the leg up, then rallying to close in the middle of the bar on normal volume….. What The ??

We have had a pretty good run, and this is our first real failed trade since I started this commentary. We will sit back and wait for another signal - So in this case I scratch my head, swallow my medicine, – and go check out the shiny bits.

SILVER

If you got long last Wednesday you have had a great ride, and the market afforded you another long entry on the outside bar on Monday. Before running into resistance.

I’ll leave you to look at the chart, un-like Gold it did not find a DT but you may care to look at the 87.5 % retracement of the range down and note it did 21 bars down and 11 bars up.

Issue 55

Proof is in the Pudding.

Well I’d never really planned to write these intros each week but somehow I seem to come up with some valid material.

The last few weeks we have been drumming on about being more specialized, and I was talking to a subscriber this week about a particular market, a market they have taken to pulling apart, and once again the simplicity of what I’m doing dawned on me.

I have a shelf full of tools, but like a builder you don’t have to take every tool you own to the top of the building to screw in a light fitting! I use the tools that gel with me for a particular market, in order to achieve my goals.

We were talking about effectively forecasting – where would this move end? -and I don’t mind having an opinion on that, so long as I am not married to it, that is, I can effectively separate my actions (trading) from my opinion (forecast). Easy you might say, well not for me. When I developed the system I talk about in these articles, it went against everything I’d been taught – often against everything I thought, and more often than not against my OPINION of what the market was going to do. The forecast.

Now I have not done a definitive study, but I’ve looked at it enough to know that by trading this method the way I do, I have limited risk, I am with the trend most of the time, and with it when it moves in my favour (see gold and silver this week), and I’m out of it if I’m wrong. Overall, I am accumulating larger profits than hanging in on a forecast with a larger stop, if I’m wrong I give too much back and have to second guess my stops. But that’s me

It’s horses for courses, I had to come to grips with my risk tolerance, I won’t walk past 100 on the ground to maybe get 200 down the road, that’s FOMO based on greed.

A buddy flicked me a concept this morning that I thought was interesting and as I don’t normally watch or trade it any more, I’d not seen this. Tim does such great commentary on the SPI, I thought I’d piggy back - I’ve decided to use it however I’ve given it the Krusty treatment (Krustified it).

Now I’m going to give you an exercise to think about, take a look at this chart, effectively a Forecast it’s kinda neat because it’s not far out in time - in my view it’s as good as any (because it’s now mine J) but come up with one of your own

Print it out and follow it, look at trading that market with the “wage” methodology versus trying to enter and hang on, and see what the results look like

Understand this is offered as an exercise, was done in a few minutes, is as good as the paper it’s written on, and most importantly even if it was my Holy Grail I have NO ATTACHMENT to it. Now, having said that what can we see?

Now it’s not that I don’t do some of this work, it’s fun, but you need a powerful mind and system to trade it, and what I have given you is what I use every day, and it’s the basis to being able to use something like this.

So there it is in all its glory, a forecast !!! Woopde doo …. The Missing Millions, the Holy Grail to some, but the reality of it is I’d be doing you a bigger favour giving you a bucket of carrots …..At least you can eat those.

This is useless without a strong strategy and the ability to trade it.

Any who – what do we see basically the speed angle from August 2011 to the March 2015 top repeating from Feb 2016 taking us out to 2019.

So, what’s all that mean. What do you see?

Immediately I know Sept 2019 is 90 years from the 1929 top !! did you.?
The target looks pretty much like a DT with October 2007
Oct 2007 is 144 months or 12 years from Sept 2019
Sept 2019 may be wave 5
Current market is strong above the speed angle Careering into resistance form the 2008 Dt
16 ( 4²) x 438 is 7008 ( just pipping the old top on 15 October 2007 @6897 - for anyone interested the top came in Sycom. The Pit session high was not until like Nov 1 and only 6880)

I am demonstrating that you must have a basic understanding of what’s going on around you, and of the market your working on. I don’t trade the SPI but I suspect I have a better knowledge of it than most who do. If these comments lead you to have an OH moment, they are designed to.

YOU NEED TO DEVELOP THIS KNOWLEDGE OF YOUR MARKET

There is more, but that’s enough, the point is if you think this is your forecast, go back to March 2009 and paper trade it 2 ways.

As a forecast Long and strong from Feb 2016 asking

what position size,
where are your stops,
what’s your plan, do you sit through the pull backs into June or Nov 2016 ?
when do you change contracts? and

As the wage system I’m describing here.

And then decide which is more profitable with your mind set. This is the sort of work that changed my thinking and I think will help you with your personal strategy moving forward.

If you don’t pick this example pick a run from your favourite market and do the exercise.

It may just change your view of forecasting.

Whatever you decide, again, I reinforce, you need a strong strategy and the ability to trade it.

Hope it helps have fun !

THE MARKETS

GOLD

We Left Gold short with a profit and stops in profit, as below

The week unfolded according to Hoyle and we got another short.

Now the next chart takes you to the short cut to see the stop. I’ve been trailing it behind the bar.

So how far might it go? Well we have support there at a major 50% may be worth a look or the old March low.

What about time?

Well maybe the 11/12 May looks OK - around the same time of the month as the Dec low and 60 degrees from the March low 90- degrees from the Feb Swing - good enough place as any, a few other counts may interest you. For those interested the Moon will be full then also.

I’m giving you the stuff I use every day – you will notice there is not rocket science here.

SILVER – ( SIE )

I did not get into the Silver debate last week, because I entered on different rules, and I’m trying to get you to find one set of rules and master them.

Silver also has similar timing to Gold for 11/ 12 May if you care to do a little work on that market

SOY BEANS – (ZSE)

This is where I left beans on Friday, the Friday pit session saw beans retest out yellow box reversing to create what was a weak very small Double bottom.

Beans do this as they accumulate, when you watch them enough it’s a pretty standard thing.

So I placed an order to go long on Monday but was a little aggressive it gapped over my entry, but I managed a fill when it came back to test the top of Fridays bar, an advantage of being in from of the screen. I thought it may have gone on without me in which case I DO NOT chase the trade EVER.

AUSSIE BATTLER (DA6)

We were stopped out of our Short on Monday for a profit and offered a new Short on Wednesday took profit on 2/3rds same day and now stops behind Thursdays bar

Guys, none of this is rocket science it just strong rule and trade management .

NATURAL GAS – (NGE) DB @ 50%

Last weeks chart here for reference and we were stopped out on Monday

It now remains to be seen if the 50% level can hold

POSITIONS

I have not talked about them in detail and I said I used a different rule to enter the first one, I’ve added the silver trades I’m in to this update

It’s Friday morning in Sydney so anything can happen tonight, however we go to the weekend in a strong position.

You can see we have a couple of trades on that are more like home runs, but we only got to them by continuing to chip away at the rats and mice, and being in the market when it moved in our favour.

DATE	L / S	Market	ENTRY	Current STOP	Risk per remaining contract
24 April	Short	GOLD ( GCEM )	1278	1242	3600
1 May	Short	Gold (GCEM)	1263	1242	2100
1 May	Long	Beans ( ZSEN)	960	968	400
3 May	Short	Aussie ( DA6)	7500	7430	700
18 April	Short	Silver ( SEIN )	1843	1666	8875
26 April	Short	Silver (SIEN)	1760	1666	4700

*Red means at risk - Black is in profit, per contract based on current Stop, on any remaining open positions, Profit may already have been taken on 2/3rds of the opening position size – meaning a loss on the remaining position does not necessarily mean a loss on the overall trade.

(I do my best to check the numbers and dates I transpose, but sometimes I’m a bit dyslexic and mistype one - I apologise in advance)

Have a great week & may the GoFR be with you ….. J