Chat with Joe Ross

U.S. Chat log from: Wednesday, June 24, 2009

Live Chat with Joe starts Wednesday at 8.00 PM U.S. Central Time!

	JoeRoss joined.
JoeRoss	Wow! Look at all the faceless people :-)
JoeRoss	Good evening faceless people
realspace	Good evening Joe
JoeRoss	You can choose a face by clicking on action above and choosing an Avatar
JoeRoss	I can always tell when the world is ending by the number of people who show up on the European chat.
JoeRoss	Today we had double the usual
JoeRoss	The end of the world today was the Swiss franc.
realspace	I am new to the room. Joe, can you tell me what kind of questions we can ask in this room?
JoeRoss	real: You can ask about almost anything but the sex life of my corn. :-)
realspace	I scanned through a few of your past chat logs, and came to know that you are still trading and have as many as 50-100 postions at any one time. How do you manage so many positions and how did you decide on those positions?
Philippe	hi all Hi Joe
JoeRoss	real: all of those positions are either covered calls or short puts. There is virtually no managment needed except for 1 or 2 days per month. In some cases once every few months.
JoeRoss	I decide those positions by virtue of the return they offer.
JoeRoss	Hi philippe
JoeRoss	Hi Joy
Joy	Joe: Good evening to you! Hope you have had a lovely afternoon and supper!
marsh	Hi Joy
JoeRoss	Joy: I watched a movie and ate some fruit. I worked my tail off in the garden early this morning. I go out there to till the ground and feed the mosquitoes with my sweet blood.
Joy	marsh: Hello! How are you :-)
JoeRoss	I'm back down from 114 positions to around 80. I have to build up the pile again.
Philippe	a few weeks ago you were talking about developing a method for income generation. how far is that Joe?
Joy	Joe: Oh no! That sounds like a lot of work! And those mosquitoes are terrible!
JoeRoss	Philippe: The short puts and covered calls are the income generation plan.
marsh	What are you planting Joe? Is it a commodity we can short because you'll be growing so much?
Joy	marsh: You are so funny :-) I wonder if Joe is planting those Sexy Corns :-)
JoeRoss	Joy do you remenber that small account I started in March?? $10,000. Well it is now over $14,000 from doing covered calls and short puts.
Joy	Joe: That is incredible! We really just need to follow your guide and you take care of us!!
marsh	I've got corns on my feet that no one thinks are sexy. Even the doctor ran out of the room screaming.
JoeRoss	I planted sexy peas this morning; harvested squash and tomatoes, and tomorrow I will harvest some fresh lettuce. Bell peppers, too.
Joy	Joe: Yummy! You must have the best salads for Father's Day celebration!
JoeRoss	Welcome to amy, joanne, and brian344.
marsh	The economy is so bad that even master trader Joe has a victory garden.
JoeRoss	joy: absolutely the best.
Brian344	::smile
Joy	Joe: I want to visit your Victory Garden in October when I come to see you for the seminar :-) And help you plant those sexy peas!
JoeRoss	Brian is 344 your age in months?
Brian344	no ::blush
JoeRoss	Joy by then I will have eaten those sexy peas.
Joy	Joe: I will help you plant some new ones then :-)
JoeRoss	ok if you come down to Austin
JoeRoss	If you want to know what happened to the Swiss franc, read my blog.
JoeRoss	I'm taking a poll: How many took out their calculator to see if Brian was 344 months old?
realspace	Joe, do you only trade options? do you trade outright futures/stocks position on intraday basis?
Brian344	Just started to read your book "Trading Futures By the Book" ... and I will take the 28.6 years of age!
JoeRoss	real: If it walks and breathes, I will trade it.
Joy	Joe: I didn't take out the calculator yet, but read your blog. Thank you! That makes sense out of the SNB now for me.
realspace	what do you mean?
JoeRoss	real: I trade stocks, futures, forex, options, spreads, and barter for lots of things. I will trade anything intraday.
JoeRoss	I recently traded a private tutoring session for 3 silver ingots
JoeRoss	If you have something I want, I will trade you for it.
realspace	I looked into options, especially options on futures, but I didn't find them to be appealing due to lack of liquidity and large bid/offer spread.
deskjockie49	Joe, when you trade forex, are there any particular currency pairs that you favor?
JoeRoss	desk: No favorites. I often trade the exotics.
deskjockie49	I've looked at those too but the spreads are huge.
JoeRoss	I will only trade in forex if what I want is not available in currency futures
deskjockie49	I see
JoeRoss	desk: You have to trade them long term. they are not for day trading.
deskjockie49	yes, they are not as liquid as the majors
realspace	i don't agree with you Joe on this.
JoeRoss	For example: The Brazilian real is hot, so is the Turkish lira.
realspace	oh, you mean the exotics, then it has to be long term then.
deskjockie49	yes, the spreads are so great that a quick scalp doesn't make sense
realspace	why bother to trade those exotics when you have majar pairs to trade each and every day?
marsh	Recently, Andy had a natural gas spread where the bid-ask spread of the far out contract was as great as the anticipated profit.
JoeRoss	real: Because the exotics make a huge amount of money and you don't have watch them all day long
JoeRoss	marsh: I can believe it.
deskjockie49	the euro/dollar pair made a big move yesterday that made me some money
Joy	Joe: Did you hear it was rumored that US government had ordered all US embassies to buy and store a year worth of local currencies (i.e., currencies used in the countries where the embassies are located?)
deskjockie49	buy the rumor, sell the fact
JoeRoss	Joy: Yes I know about it.
deskjockie49	there's a rumor that we're going to a one-world currency too
Joy	Joe: So it is true! Then it is horrible news for USD (which you have taught us for a long time!)
deskjockie49	there are all kinds of rumors out there.
JoeRoss	Joy: I'm not sure what was in the last TMC. I get them all mixed up in my mind, but did it have the link to how Bernanke is going to solve the dollar crisis?
JoeRoss	If it did, be sure to read it. It is 36 pages long, but well worth reading. If not, it will be out this Friday. It is a must read.
JoeRoss	hi robks
robks	Hi JOe
Joy	Joe: Maybe it is this coming issue? I could have missed it - let me check the June 19 edition again.
JoeRoss	Joy: I just looked it wil be in TMC 2.26 this coming Friday.
realspace	How did you get started as a trader? Did you ever trade on the exchange floors?
Joy	Joe: THANK YOU! I will make sure to read it!!
amy	hi, joe, u are here, i just finished cookingand dinner !:) so happy talk u here. i want to ask a question about major , now i am study in college for , then transfer to university, what major do you think is useful for trading?
JoeRoss	real: I got enchanted at the tender age of 14. I started really trading at age 22. I have never traded on the floor, although I've fallen to the floor numerous times in my life.
JoeRoss	amy: Become a Finance major
deskjockie49	how did you come up with the Ross hook and the Trader's Trick Entry?
amy	thanks
robks	How would you describe your style of trading? systems trader or position trader or a little of both
JoeRoss	desk: Simple observation produced the Rh and the TTE, along with a bit of divine inspiration
deskjockie49	divine inspiration is always good
realspace	desk, what is your experience with Ross Hook and the Trader's Trick Entry? How successful are you to use them with your trading?
JoeRoss	robks:: None of the above. I am a momentum trader.
deskjockie49	real, I am just now learning Joe's Rh and TTE
Joy	amy: Good luck in school and follow Joe - you will learn so much from Joe: no matter how young or how old :-) Joe changed my life!
deskjockie49	I trade mostly forex cash market
JoeRoss	desk: should we be happy or sad for you? :-)
deskjockie49	intraday. using a bounce off moving averages system
robks	what is your method of assessing momentum,
deskjockie49	happy. I'm netting about .5% per day
deskjockie49	not extravagant, but solid
amy	I think it's really helps to get a mentor like you to help jump to a higher level faster. your advice and encouragement helps boost my confidence.
deskjockie49	I risk about 1/2 % per trade. I've learned that risk management is the true secret to success in trading
amy	joy , thanks.
JoeRoss	robks: I know you would like a free seminar here in the chat, but there is not time or space for that. If you want to know how I assess momentum you have to come to a seminar or take private tutoring, or read through several years worth of chats. Maybe you will find it there. Then again, maybe you won't.
Brian344	Joe do you use the trading style like in your book for es, forex etc? (from the book "trading Futures by the Book" or do you change it up depending on what you are trading...
JoeRoss	Brian: I change with the markets.
JoeRoss	Most people are looking for the perfect way to trade. It doesn't exist. Every market and every time frame present their own hurdles. And those hurdles change with volatility.
marsh	desk: Joe has a method similar to bouncing off a moving average: Sweet Chariot.
deskjockie49	yes, it's a fairly common system
Brian344	ok
deskjockie49	again, though, risk managment is the key to success no matter what entry style you use
JoeRoss	Sweet Chariot, is one of many methods.
deskjockie49	in my humble opinion
robks	what is open to discuss in this forum can we talk about any movements or examples in futures market
JoeRoss	robks: you can talk about them as long as it doesn't take up a lot of time and causes everyone to have to look at charts.
deskjockie49	Joe, I like to look at charts! especially examples of the Rh!
JoeRoss	desk: I like to look at them too.
JoeRoss	I like making money from them even more
deskjockie49	yes indeedy
deskjockie49	but you can't learn how to make money without studying them:)
robks	do you have a current surmation of the crude market
JoeRoss	robks: how about a crude summation of the current market?
robks	that will do
deskjockie49	lol, good one, Joe
JoeRoss	robks: Only kidding. Summation of crude: It will go up. Summation of current stock market. It will go down.
deskjockie49	summation of currency market - it will go up and down!
JoeRoss	I think a great example of how markets change can be found in the method we call Joe's Easy Bonds
robks	desk jock, If you make only .5% and you risk .5% how are you profitable. Your possible gain should always be more that your risk. Or do I have your numbers wrong
deskjockie49	no, my win/loss ratio is around 80%
JoeRoss	When we started that method, it worked like a charm for 3 years. Then it became erratic and worked on and off for over 1 year. Now that crazy thing has been working like a charm again.
realspace	Joe, after 50 years of trading, what is the single most important factor for trading successfully over the years?
deskjockie49	so I win more often than I lose.
JoeRoss	real: Discipline and self-control
deskjockie49	amen to that Joe
deskjockie49	it's hard to learn but absolutely necessary
robks	winning more often than you lose does not mean you are profitable.
Joy	Joe: Do you know what changed back that made Easy Bond work again now?
deskjockie49	it does if you are making a consistent daily increase of .5%
deskjockie49	that's what I meant by .5%
deskjockie49	sorry for the misunderstanding
robks	ok
JoeRoss	Joy: I really don't know. I tried to figure it out but it gives me a headache. All I know is that markets change and that method proves that they do.
Joy	Joe: OK... thank you :-) And please don't get a headache!
deskjockie49	Joe, can you elaborate a bit on what you mean by "markets change"? in what way do they change?
JoeRoss	Was is direction? Was it momentum? Was it volatility? was it a combination of things? Who knows.
JoeRoss	desk: read my last statement
deskjockie49	got it
deskjockie49	you were giving the answer before I got in the question!
JoeRoss	Here's another one that proves they change: In the early 1980s trading Swissie was the day traders market. I could almost guarantee 12 ticks MIT from my entry.
deskjockie49	I understand what you are saying.
deskjockie49	you have to be flexible
deskjockie49	change with the market's flow
JoeRoss	After awhile it dropped to 10, then 8, then 6. At 6 ticks I had to trade 60 lots. But 60 lots caused me a lot of split fill problems, so I moved to trading the pound.
JoeRoss	After about a year. I looked at the franc again and it was giving 12 ticks. So I changed back.
JoeRoss	Markets change and you have to change with them. You always have to know you risk as well as your risk tolerance. You have to know and understand that trade management is totally different from money management and that measured on a scale trade management is far more important than money management -- but that both are intertwined.
deskjockie49	isn't risk management a part of trade management?
JoeRoss	desk: Not in my book. they are completely different but still intertwined.
realspace	i agree, you can lose a lot of money with a sound money management but a poor trade management
marsh	In the 1970's, commodity prices rose rapidly, and many "market gurus" made lots of money. But in the 80's, these markets went sideways, and all these "gurus" lost it all back plus.
deskjockie49	can you explain what you mean by 'trade management' as compared to 'risk management? and how they are different?
JoeRoss	Most famous guy who didn't change was Richard Dennis. He made a fortune in the 70s and lost almost all of it in the late 80s and early 90s
JoeRoss	desk: tune in next week and ask the question again.
JoeRoss	We are out of time.
JoeRoss	Good night all.
deskjockie49	ah. ok
robks	good night
Joy	Joe: THANK YOU for the great lessons today! Time passes fast when you are learning great wisdom :-)
Joy	Sweet dreams - love and kisses to you!
marsh	Thanks, Joe.
JoeRoss	Let's just say there are 5 areas of managment -- and they are all co-dependent: Business; Money; Risk, Trade; Personal
JoeRoss	Good night
Joy	THANK YOU Joe!
marsh	Read "Trading is a Business" by Joe Ross
	JoeRoss left.

Next Chat with Joe Ross:
Wednesday, June 24, 2009
Time: 8:00 - 9:00 P.M., U.S. Central Time.

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