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	Hi everyone
JoeRoss	I see 2 new faces :-) welcome
zeus	Hi Joe
EugeneA	Good evening Joe.
limasierra88	Can't be me, I was here last week. :-)
JoeRoss	What's cooking on Mount Olympus, zeus?
limasierra88	Just your usual orgy?
zeus	oh just trying to make a buck or two joe
JoeRoss	Hi brett and sprink
aussiebrett	Evening Joe Evening all
sprink	Hi Joe
JoeRoss	We had a large group on the European chat this afternoon--with lots of questions. My fingers were flying in order to answer them all.
JoeRoss	airtime is here too
Airtime250	Hi ALL
zeus	Joe, I have read 3 of your books going back 15 years and have been trading the hooks, points & 123's
JoeRoss	Hooray for Samurai. Thanks for giving us a face to look at Sam.
zeus	but lately i have been having difficulty with the breakouts
JoeRoss	faces are important. Please clidk on Action and then My Avatar and choose a face.
streetsamurai	lol don't like being a shadow.
JoeRoss	I give preference to chatters who have a face. ;-)
sprink	Joe did you hear of Jim Rogers? He was on Bloomberg last nite ,he sounded a lot like you and all the things you been saying
JoeRoss	I've heard of Jim Rogers. Famous trader.
JoeRoss	Evenin Joy
Joy	Joe: Good evening to you! Hope you have had a lovely afternoon!
Airtime250	zeus: what markets have you been trading?
Joy	marsh: Hi! How are you?
JoeRoss	Joy: I visited a friend in the hospital. He is in a lot of pain.
marsh	I'm OK. It's raining here in Austin. Just a minute. Let me check. Did Hell freeze over too?
zeus	I only trade the ES
Joy	Joe: Oh no, I am so sorry to hear that. I will pray for his healing tonight.
Joy	marsh: You are so funny! I hope you get some much needed rain tonight. :-)
inertia.trader	I'm in Austin too marsh. Boy did we ever need that rain!
Joy	Joe: I enjoyed Andy's webinar this afternoon. THANK YOU for mentioning it.
EugeneA	Joe, I have a question about trading spreads using a single lot. Can you say a few words about trade management for these trades? What book of yours covers this topic in details?
JoeRoss	Is it still raining? It stopped in Cedar Park.
Joy	Joe: He mentioned something interesting in the webinar and also in his recent forum writing that "entry is not as important as exit/trade management" in spread.
JoeRoss	Eugene: 1. I do not encourage trading single lots in spreads. You have very little management capability. The book is "Trading Spreads and Seasonals"
Joy	Joe: Does that mean I may enter a spread once it starts trending even if I missed the proper #2 or Rh breakout or TTE entry?
JoeRoss	Joy: What Andy said is true.
JoeRoss	Joy: yes, one of the things we teach in the spread seminar is that it's okay to chase a spread trade.
Airtime250	That takes some of the pressure off, doesn't it...
Joy	Joe: THANK YOU! That is great to know! I really enjoyed your book so far and will definitely subscribe Traders' Notebook and take the seminar course, too.
limasierra88	Since I missed Andy, may I ask Andy Who?
JoeRoss	Andy Jordan, our spread trader
limasierra88	Thanks, I know some other Andy's, will have to meet Mr Jordon too
JoeRoss	lima: Andy is in Germany, so if you happen to be out that way you can shake his hand.
limasierra88	Used to go every month in another life, but not recently ... anywhere near Aachen?
zeus	Joe...do you think "algorithms" have had an effect on the breakout trading that you talk about in your books??
JoeRoss	lima: I don't know Aachen, but he is about 1 hour from Muenchen
limasierra88	Gotcha.
JoeRoss	zeus: If you trade the way I teach, algorithms will benefit your trading.
EugeneA	Joe: You don't recommend spread trading single lots even if one trails stop?
zeus	I ask the question Joe because I dont see the "stop runs" the way they use to....trades will not hesitate and give much heat before they finally go.
JoeRoss	While most of you are here, I'm letting you know that I will be here next week, but not on August 5 or 12.
Joy	Joe: Will you be on vacation?
JoeRoss	Eugene: That is correct. It is an almost guaranteed way to lose your money.
JoeRoss	There are no stops in spread trading, Eugene.
JoeRoss	zeus: the day they quit running the stops will be the day there is no more market.
JoeRoss	Joy: I am heading for Central America to establish my minitry there.
Airtime250	Joe: Would that mean that it is more advantageous to trade more than two contacts and liquidate 2/3 on the first target?
EugeneA	Joe: Thanks for warning me. Of course, I meant a mental stop.
Joy	Joe: WOW! That is incredible! I hope you will have a wonderful trip on such a worthy cause.
JoeRoss	Airtime: Yes, at least 2.
Joy	acman: Hello our good friend! So glad to see you! Hope you have not been too busy to sleep this summer!
EugeneA	Joe: have a great and safe trip.
Airtime250	What part of Central America? Will you be working to expand an established ministry or pioneering an new one?
JoeRoss	Airtime: Panama for an existing ministry
Airtime250	Wishing you the best!!!
JoeRoss	Thanks for all the good wishes.
limasierra88	Yes, wishes for much success
zeus	Joe..I am talking about a 1-tick breakout from a perfectly set up 123 that trades only a handful of contracts and then goes in the opposite direction for as much as 2-3 handles and THEN goes back and continues the run.....creates a lot of heat in taking the breakout.
JoeRoss	zeus: Your timing is off :-(
zeus	how so?
JoeRoss	zeus: It sounds like you are trading at the wrong time of day.
jkjazz	What is the best time to trade the forex market? Do you use your methodology of Ross Hooks when trading the forex?
zeus	I am at the screen from open to close joe
zeus	I do not recall your books mentioning any specific time of the day to trade
zeus	If you are sitting in front of the screen all day, it's no wonder you are having problems. The best time for trading ES is 08:30-10:00. After that forget about it. If you must trade more try 1:30-2:30. Those are Central times.
JoeRoss	jkjazz: The best time or times are when there is the most volume. That can be one or more times/day. Yes, i used the Rh methodology to trade forex.
JoeRoss	zeus: I have to leave something to teach at the seminars :-D
Joy	Joe: I am sure you will teach that in the October seminar, right? :-)
JoeRoss	The books deal mostly with things that are universally true and have very little change. The seminars deal with things that change often and how to adapt your trading to those changes.
EugeneA	Joe: (single lot spread trading) What if I always settle on the first profit target? Will I be OK without holding runners or my losers will kill me?
JoeRoss	Joy: I will emphasize the right times so often you will get sick of hearing me say it.
marsh	Strategy vs tactics
JoeRoss	Eugene: You won't make enough on your first target to overcome the losses and costs.
Joy	Joe: LOL! I cannot imagine being sick of hearing you say anything. I will only be sick of myself if I cannot practice what you teach in real life trading!
JoeRoss	you need those other contracts to run, that's where the money is.
jkjazz	Which of your books would be the best to purchase for effectively trading the forex?
EugeneA	Joe: Thanks. I see... But what if I then trail my mental stop without cashing-in on the first target? Won't it be the same (or about the same) as multi-contract trade?
JoeRoss	jkjazz: you are under the impression that trading forex is something unique. But it isn't. If you can trade stocks or futures, you can trade forex and vice-versa. When you are trading you are dealing with universal truths--human emotional reaction to the movement of prices. It is the same in all markets, which is why charts all look about the same.
JoeRoss	jkjazz: If you read Trading by the Book, Day Trading, Trading the Ross Hook, or Trading is a Business, you will find all you need to trade forex.
zeus	I have read all of those books more than once Joe but your specific times to trade the day are a new one on me.
JoeRoss	zeus: They are not in the books coz they change too often.
limasierra88	jk raises a good question ... which books in which order would you recommend, given that the charts "all look about the same" (people are people)?
marsh	zeus, is it so hard to look at a 15 minute chart with volume included and see when the high volume time are?
zeus	marsh; its not the same every day
JoeRoss	lima: If you want a progressive order in which to read them, then read them in the order I wrote them: Trading by the Book, Day Trading, Trading is a Business, Trading the Ross Hook. Actually Day Trading (formerly Trading by the Minute and Trading is a Business were written simultaneously)
limasierra88	Thanks
marsh	zeus: then what do you want Joe to do for you?
jkjazz	Have you found a basic range of success in applying the Ross Hook?
JoeRoss	jkjazz: Is 52 years of success enough range for you ;-)
Joy	Joe: I have a question on checking fundamentals for seasonal spreads - by the way, I love the ways you teach us to filter the trades.
Joy	I was practicing and looking at soybean meal, which has been experiencing backwardation.
Joy	When I see the seasonal calendar spread SMZ9-SMQ9 coming up and the spread does reverse and turn, should I filter OUT the trade because of backwardation? Or should I just use it as a check/alert point but go with the trade since the spread seems working toward the direction of seasonality?
jkjazz	Do you have a time-frame you like best for the forex -- 15 min, 1 hr, etc
EugeneA	Joe: Thanks. But what I then trail my mental stop without cashing-in on the first target? Won't it be the same (or about the same) as multi-contract trade?
JoeRoss	Joy: Backwardation is never more than an alert. A spread can be in backwardation for months and never trend either seasonally or counter-seasonally.
JoeRoss	Eugene: I don't recommend it, but if you can make it work let me know.
Joy	Joe: THANK YOU for helping me understand the concept!
JoeRoss	jkjazz: I look for a certain level of volatility. I adjust my time frame to obtain the degree of volatility I'm looking for.
JoeRoss	These are the kinds of things I teach at the live seminars and in the private tutoring.
EugeneA	Joe: Thank you. Undercapitalization is my problem and O
zeus	marsh; I already asked Joe my specific question about why the hooks dont work like they use to and his answer was that i am not trading the right time of the day. He said we must trade at high volume and that he discusses that at his seminars.
EugeneA	I'm aware of it...
limasierra88	How do you like to measure volatility, or is it a "feel" thing?
Airtime250	Joe; You mentioned a lot of really good questions that were asked on the European chat... is there any one topic that stood out today?
limasierra88	I have noticed that it seems to help to use a timeframe that shows some trending, rather than being overwhelmed by noise.
JoeRoss	Eugene: If you are undercapitalized you need to wait until you have more capital, or find a way to build your trading capital. That's what I'm doing with my wife's account. I wanted to prove that I could take a $10K account and double it in 6 months trading a covered-call, naked-put strategy. It has been trading for 4 months and is now at just under $19K. Very conservative, low risk, steady small wins. I may actually double her account in 5 months by trading very carefully. I spend less than one day per month to trade her account.
JoeRoss	lima: There are many ways to measure volatility. Each method claims to be the correct one. I cannot tell you which one is right, coz i don't know. I just use the one that is in the software I trade with. It's called Average True Range. But I've seen significant differences in the way it is calculated among the different software programs.
JoeRoss	Airtime: I wish I could remember. The questions were all over the map. i was so dizzy trying to answer them all, at this moment I don't remember any of them.
EugeneA	Joe: Very impressive! I know that preservation of the capital is the key.
jkjazz	Is the covered-call naked put strategy the one you would recommend to learn to most safely increase a trading account?
JoeRoss	lima: One way to see more trending on your charts is to use tick charts.
Airtime250	Joe: I know that feeling!!!
limasierra88	True, I do that for the most detailed charts.
JoeRoss	jkjazz: It is a strategy that gives up most of the capital gains in return for low risk, option premiums, and dividends on a steady baseis. It is an income generating strategy.
JoeRoss	It's a form of premium accumulation
jkjazz	Which book outlines this strategy?
Joy	Joe: Do you still trail stops (perhaps placed quite far away) as last resort in case of a finanical market crash?
Joy	For those stocks you sell calls against, that is.
JoeRoss	jkjazz: I haven't put it into a book. I created the way I do it late last year in December
JoeRoss	Joy the only way I can lose is if the company goes broke.
Joy	Joe: Thank you! The ultimate income strategy you have for us!
JoeRoss	Joy: if the market crashes I just sell more calls. If it locks into a trading range I sell more calls and puts too.
JoeRoss	speaking of crashes, it's time for me to crash.
JoeRoss	Good night all.
JoeRoss	See you next week, but then not for 2 weeks after that
streetsamurai	good night
EugeneA	Thanks a lot, Joe. Have a good night.
marsh	Bye Joe, thanks
limasierra88	Thanks Joe. No way to copy some of the chat text??
Joy	Joe: Good night and thank you for the wonderful lessons!
Airtime250	Thanks Joe! Thanks Everyone!
Joy	Sweet dreams and kisses!
	streetsamurai left.
JoeRoss	lima you can read the chat logs. I usually get it out there by the next day.
inertia.trader	Thanks Joe. Have a good night.
aussiebrett	good night Joe
limasierra88	Thanks
JoeRoss	Joy: ::rose
	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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