FAQ

FREQUENTLY ASKED QUESTIONS
TO JOE ROSS AND TRADING EDUCATORS

These FAQs are listed questions and answers from various e-mail correspondence between our trading students/customers, all supposed to be frequently asked in some context, and pertaining to a particular topic.

Links throughout the answers will guide you to further information on our website or from other sources. Should you have any further questions, please consult our Contact Us page.

Q: Are the Live Seminars recorded and available on your website?

A: No, they are not recorded, nor is recording of them allowed at the seminar.

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Q: What is the difference between the Private Tutoring with Joe Ross versus other seminars?

A:  Private Tutoring is characterized by:

• Content: 100% personalized for you
• Familiarity: You get to know Joe—He gets to know you, along with your problems
• Research: You will receive a lengthy questionnaire to fill out and return. The questions are designed to detect where you need help. The training will be custom tailored to your needs
• Thoroughness: You are able to ask all the questions you would like answered
• Vitality: You receive the very latest information
• Live Markets: You will watch the markets live as Joe points out the various situations he will teach about
• You learn Joe’s 5 basic setups and see them in action
• Participation: You demonstrate to Joe that you understand what he is teaching you
• Follow-up is by personal online voice and text chat, E-Mail, forum posts and weekly online chat

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Q: What is the difference between the Online Video Seminars and the Live Seminars?

A: The live seminars are dynamic and completely up-to-date, and are designed to teach you how to trade in any market and in any time frame. Although the carry the title “Day Trading Seminar” what you will learn there can be applied to any time frame, intraday, daily, weekly, etc.

The truth is always the truth—there can be no exceptions. What you will learn at the Live Seminars is the truth—therefore it is applicable to all markets and time frames.

You can use what Joe teaches to trade futures, forex, stocks, CFDs intraday or end-of-day. You can day trade, swing trade, or position trade with what you will learn at the seminar. You will be amazed at the simplicity of the truth in trading that is taught at the Live Seminars.

Because some of the information taught at the Live Seminars changes with the markets, the seminars are not recorded for viewing on our website.

The Online Video Seminars exist for purposes of education and training in area not covered by the Live Seminars. They contain vital fundamental and foundational information in the specific areas of spread trading and option trading.

The Live Seminars are characterized by:

• Questions asked by students
• Discussions among students during breaks, as well as before and after the seminar hours
• The responsiveness of the presenter to the “feel: of the audience. Because each audience is unique, a portion of the information that is brought out at each seminar is unique. Various questions will invoke various answers, which in turn will bring about different lines of discussion from one seminar to another.  For this reason we allow repetition of the Live Seminars for a nominal fee as they become available

 

The Online Video Seminars are characterized by:

• Visualization: You view a series of slides and you hear Joe Ross as he teaches from the content shown on those slides
• Savings: No need to travel or incur travel costs
• Repetition: You have the ability to repeat the seminar numerous times during the time it is in your possession
• Convenience: You take the seminar whenever and wherever it is convenient for you
• Comfort: You take breaks as often as you choose
• Content: The online seminars contain fundamental and foundational information, information that is not highly subject to change. The information is time-tested and vital to today’s markets. They are designed to teach you how to trade and to impart information to you not taught anywhere else
• Printable aid: You will receive a downloadable file which you can print out, containing all of the visual content presented in the seminar
• Support: Follow-up is by E-Mail, forum posts and weekly online text chat

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Q: Can I make a living trading? Or: Is it really possible to trade for a living?

A: Obviously, for some it is. However, we cannot truthfully answer that question for anyone.  It depends on how much a “living” is for you. Some people are content to take a modest living from the markets and some want a lot more. How much money do you need for your living?  We have no idea! And, even if you had the amount of money you suppose you would need or want, would it in any way improve your quality of life?  A living is more than just making money.  A living involves your entire lifestyle. Would you consider trading for a living if you had to work 18 hours/day at it to make the amount of money you want to make?

However, we know you would like to see some numbers so, here they are.  The overall average among professional traders is that they make 6%/month on the amount of money they have in their trading account.  When you compound 6%/month the result is 100%/year, which is an excellent return. It means that if you have a margin account of $10,000, you should be able to double it in a year.

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Q: Where do I put my stop?

A: We assume you are asking where to place your protective stop loss at the time you initiate a trade. What you really are asking is: “How much risk should I take when I enter a trade?  The answer is: “Only you can know that, we most definitely cannot.” There are many variables involved in stop placement, and most of the solutions offered are worthless.  It makes no sense whatsoever to use a fixed dollar amount, a fixed percentage of your account, or a fixed number of ticks or pips for stop placement.  The markets change from one day to another.  Due to variations in volatility, no fixed method of stop placement is going to be any good in all situations.

At our Trading Educators seminars, we show you ways to come up with the amount you might use for your stop placement, in forex, futures, stocks, spreads, and options. We also show you how to figure out objectives and position size. We even show you how to determine which markets and time frames you might be able to trade in.  But there is no way on earth that we can tell you how much risk you can afford to take.  We do not know any of the following:

• Your risk tolerance (level of comfort), emotionally, mentally, physically, or financially
• We do not know how much money you have or it’s intended use
• We don’t know your trading style
• We don’t know how you will behave under pressure
• We don’t know how you will behave during a losing streak
• We don’t know how you will behave during a winning streak
• We don’t know your family situation, etc.
• We don’t know how much greed will affect your trading
• We don’t know how fear will affect your trading:

• Fear of missing a move
• Fear of being wrong
• Fear of losing money
• Other moral and emotional fears

• We don’t know how pride will affect your trading

These are just a few of the things we don’t know. So please, don’t ask us where you should put your stop.  Not only is it the wrong question, but it is a question only you can answer for yourself.  If you need guidance in answering that question, then avail yourself of Personal Tutoring, a Live Seminar, or one of our Online Video Seminars

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Q: Why are your books so expensive?

A: Because they actually teach you how to trade. Rather than us bragging about Joe’s books, let’s allow others to tell you about them. Keep in mind you get what you pay for.

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Q: Is a Ross Hook that it also a doji bar valid?

A: A Ross Hook (Rh) is formed when there is a failure of prices to move higher (rising prices) or lower (falling prices), following the breakout of the #2 point of a 1-2-3 formation.  The Rh has nothing to do with location of the Open or Close of a bar, so a doji bar that becomes the point of a Rh, is as valid as any other bar that becomes the point of a Rh.

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Q: How long should a time stop be?

A: There is no definitive answer to how long a time stop should be. A time stop must be determined by the trader based on testing and experience within the chosen market and time frame. Some traders are content to wait longer than other traders. You simply cannot say a time stop should always be 2 minutes or 5 minutes, or 1 hour, etc.

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Q: I have Analysis Paralysis. Can you help?

A: There are two reasons you have Analysis Paralysis. You can be the victim of one or both of the following:

• You don’t believe in yourself and what you are doing.
• You don’t believe that what you are doing truly works.

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Q: What information do I need to trade online?

A: This is a question that is virtually impossible for anyone to answer.  The best we can offer is that you go to our website, read and learn as much material as you can, and then ask us questions which are more specific.

Sure, we can help. It can be done one of three ways:

• Attendance at a Live Seminar
• Private tutoring in my home
• Private tutoring via the Internet.

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Q: I have trouble Pulling the Trigger on a trade. Can you help

A: There are two reasons you have Analysis Paralysis. You can be the victim of one or both of the following:

• You don’t believe in yourself and what you are doing.
• You don’t believe that what you are doing truly works.

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Sure, we can help. It can be done one of three ways:

• Attendance at a Live Seminar
• Private tutoring in my home
• Private tutoring via the Internet.

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Q: Will The Law of Charts work in any market, any time frame or under all conditions: for example: a panic market or irregular price action.

A: A “Law” is not something that “works.”  A “Law” is something that is always true.  The question asking whether or not The Law of Charts works implies that The Law of charts is some kind of system or method, and you want to know if it “works.”

The Law of Charts as applied to prices describes in graphic form the emotional action and reaction of human beings to the movement of prices.  Therefore, it ALWAYS “works” because as long as people trade markets, you will see the same basic patterns over and over again.

The Law of Charts “works” with any chart graphic that describes an underlying movement that has a range of values.

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Q: How much money do I need to trade full-size contracts in forex, futures, or anything else?

A: The amount of money you need is entirely determined by your broker. If you need a broker referral for futures or forex, send an email to support@tradingeducators.com, or read about the broker we use at http://www.tradingeducators.com/brokerreferral.htm.

 

You can see the Law of Charts working on gas meter readings, water levels of a river or random coin flips….anything that has a range of values. 

On the left we see a chart of water level readings for the Elb river in Germany.

In the case of gas meter readings, the impetus for what you see on the chart is consumption of natural gas, which will have a range of values because usage will vary seasonally.  In the case of water levels in a river, the impetus will be the range of values that will vary due to water usage, and the amount of rainfall, snow-melt, or both. 

In the case of coin flips the impetus is the pure statistical probability of a series of heads or tails.

 

On the right we see a chart of coin flips.

In the case of price charts the impetus is human emotion as seen in the action and reaction of traders and investors to the movement of prices.

If something is true, it is always true.  The Law of Charts is always true—there is no way to get around it. 
The purpose of studying The Law of Charts is to gain an understanding of how and why prices move. Whether or not you make money from this knowledge will be in direct accordance with how you implement that knowledge.

Electricity follows the laws of physics.  But unless you implement the laws that govern electricity the best you can hope for is a shocking experience. With proper implementation you can turn a motor, generate heat, or create light.

The Traders Trick Entry that we teach at Trading Educators is one way to implement the Law.  There are probably dozens, maybe even hundreds of ways to implement The Law of Charts. At our seminars and in private tutoring we reveal four additional ways to implement The Law of Charts.

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Q: Ross Hook: How far can RH be from point 2?

A: It’s kind of a judgment call, but you can use what I have done on page 300 of Trading the Ross Hook, where it states that the #3 point should be between 1/3rd and 2/3rds of a point 1 to 2 retracement.  It is all going to depend on what works for you in the time frame and market you are trading. That means experimenting a little bit.

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Q: Trend Lines: Do you use 1-2-3 highs and lows; and Ross Hooks with trend lines to help buy or sell in better places?

A: The best thing I can tell you is to do what works for you. Personally, I do not use trend lines nor do I use support resistance lines.  I trade a plain vanilla chart with no indicators or studies of any kind on the chart. That doesn’t mean that’s best for you. It’s best for me.  You must do what works for you.  I also do not use Fibonacci retracements. I am aware of them, and I use them in an unconventional way.  But I don’t trade based on them.

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Q: Support and Resistance: Do you use support and resistance to help you to buy or sell in better places?

A: I do not use do I use support and resistance. Nor do I use trend lines lines.  I trade a plain vanilla chart with no indicators or studies of any kind on the chart. That doesn’t mean that’s best for you. It’s best for me. You must do what works for you.  I also do not use Fibonacci retracements. I am aware of them, and I use them in an unconventional way.  But I don’t trade based on them.

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Q: Fibonacci: Do you use Fibonacci ratios to get better entries for buying and selling?

A: I do not use Fibonacci retracements, ratios, or confluence in my trading. I am aware of them, and I use them in an unconventional way.  But I don’t trade based on them.

Nor do I use trend lines or support and resistance lines.  I trade a plain vanilla chart with no indicators or studies of any kind on the chart. That doesn’t mean that’s best for you. It’s best for me. You must do what works for you. I am aware of them, and I use them in an unconventional way.  But I don’t trade based on them.

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Q: I’m concerned that my data supplier does not provide all the trades through their feed.  I’ve heard that they are aggregating the trades and making an average of “X” number of trades.

A: There is one caveat with all data feeds. In order to make them appear faster, providers will typically aggregate trades. I don't know of a single data provider that will, or even could show you every single trade, and even if they did, I seriously doubt that your computer would be able to receive every trade that was made. What you see on your screen is at best an approximation of the actual trading.

Think about it for a moment. Let's put everything that is happening into slow motion so we can see what is really going on. As the prices come into your computer, they are cached for distribution. At some point your computer must distribute what is has saved in its cache. During a distribution phase, the computer is not receiving prices it is posting them to the screen. Although the entire process is taking place in fractions of a second, there is no way you could possibly receive all of the ticks.

To add insult to injury, your computer is probably also doing other things. Windows does things; if you have any kind of spam filter, firewall, antivirus, or program running in the background your computer is monitoring those other things as well. In the fractions of a second it takes your computer to pay attention to its other tasks, you are not receiving ticks sent out by the data vendor.

Your computer is like a one arm wallpaper hanger. It can do only one thing at a time. Your concerns are without real foundation. Any data supplier has similar problems with their computer receiving prices from the exchange, and the exchange's computer has the same kind of problem distributing the data as your computer has receiving it.

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Q: Can I use your stuff to trade Forex?

A: Just about everything we have is suitable for the futures, forex, or stock markets.  A market is a market and a chart is a chart.  

Charts look alike in all markets and make the same formations. That is because they reflect human emotional reaction to the movement of price. Apart from trade management, which is different from one market to another and from one trader to another, the important thing is to understand how the market works, how prices move, why they move, and how far they are expected to move.

If you take our online video day trading course, just about everything in it was based on trading either the futures or the forex markets. The material in any of the futures books applies equally to the forex, and the stock markets. There is nothing unique about forex. It’s a market. If you can trade one market you can trade any market. That is the real secret of trading. once you understand how it all works, you can trade anything.

We have hundreds of forex and stock traders who use our materials to trade forex.

If you need or want private tutoring in forex, we have that available as well.  With today’s technology one-on-one training is easily done over the Internet. 

Do you see any real difference in the charts below? The top one is futures the bottom one is forex.

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Q: What methods or systems do you teach?

A: We don’t teach any methods or systems.  When we have a method for sale, it is self-explanatory and does not require teaching.

What we do teach is how to trade in any market and in any time frame through an understanding of the foundational aspects of the market that underlie market dynamics.  If you understand market dynamics you are more than half-way to success as a trader.  We also teach the proper mind set for trading, and show you how to manage trades, set stops, and profit objectives.  At Trading Educators you learn how to trade. With that understanding, you can trade any market in any time frame you choose.  You can then develop your own methods and your own systems, or simply trade the setups we teach at our live seminars and private tutoring.

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Q: What does my broker mean when he asks me if I want the debit or credit to the buy or sell side of a spread?

A: There are 3 ways a broker might ask what you want to do when you open any kind of spread.

• Where do you want the premium?
• Is this a credit or a debit spread?
• Are you paying or collecting for the spread?

They all mean the same thing.

If the buy side of the spread has more premium than the sell side, you want the premium to the buy side.

If the buy side of the spread has more premium than the sell side, you have a debit spread (You are paying more to get the spread than you are collecting).

If the buy side of the spread has more premium than the sell side, you are paying for the spread.

Just the opposite is true if the sell side had the greater premium. Then premium is to the sell side, you have a credit spread, and you are collecting for the spread.

This problem with brokers is as old as the hills. Most of them don’t even know why they are asking that question, and most of them have never done a debit or credit spread. So the fact that your broker asked you that question, means he is one step ahead of most other brokers.

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Q: Which order type would be the best for let’s say Crude Oil or the EuroFX on a 5 or 3 minute chart?

A: There is no best order type for any  market or time frame.  The best order type depends on your strategy.
The type of order you use is one of the tactics you use to carry out your strategy. 

• Do you absolutely want to be filled? If yes, use a market order. 
  
• Do you absolutely want to be filled if prices reach a certain level or go through that level? If yes, use a stop market order.
  
•  Do you want to be filled if prices reach a certain level but not be filled at a price past that level?  If yes, use a limit order.
  
• Do you want to be filled if prices reach a certain level but are happy if prices are filled within a range you specify, but not be filled at a price past the specified range? If yes, you a stop limit order.

Keep in mind that limit orders and stop limit orders have no requirement to be filled. They can be passed right over and leave you behind with no fill.

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Q: What does it mean when #2 point is very close to Ross Hook?

A: Most of the time it means you should expect sideway action to follow.  Unless prices break through the Rh with force, you are probably going to see a consolidation area, with the #1 point of the 1-2-3 as the low of the area and the Rh as the high of the area.

However, the areas of so-called accumulation at the low and distribution at the high are not as long as in years past. This is due to people trading with indicators, which also causes markets to mostly swing instead of trend.

Trading the Ross Hook - hardcopy book >> Follow this link to view the Table of Contents

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