Euro Chat with Joe Ross

Chat log from: Thursday, March 29, 2007
SusanL joined.
crosten joined.
joeross joined.
crosten Hi Joe
crosten

 Joe, what happen to gold shouldn't gold be rising instead of going down as oil hit 66?
joeross Hi crosten:
murra joined.
joeross You must never use the word "should" when speaking about a market. "Should" gives your opinion and the market doesn't care about your opinion.
joeross Hi murra
joeross Hi Susan
murra Hi Joe and everyone.
crosten What happened in the gold market today?
SusanL Hi murra and crosten
Jack joined.

joeross

 

 crosten: I don't know what happened. I haven't even looked at it, but my guess would be that one or more central banks sold gold to keep the price down and the value of their funny money up.
joeross Hi Jack
Jack Hi Joe!

crosten

 

 Joe, regarding your trading methods that you are selling, do the methods make money every month consistently or are there months when the methods lose money at the end of the month?

Jack

 

 Joe I'm wanting to enter a spread trade long YM spread against the ES. How do I know which to use to enter a long trade if the volatility changes between the 2 daily?

joeross

 

 crosten: There are months when the methods lose money, but we keep the losses very small by charting the equity of the method. Once a method drops below a moving average of its own equity, we stop trading it. So we are on the sidelines when a method is losing.

joeross

 

 Jack: I would not use volatility in the sense you are wanting to use it. If you are going to enter that spread you need to have the big picture of which index is doing better overall.
joeross How good they are doing is in almost every newspaper and on TV every day.
crosten Joe, do you keep a record of the equity curve of every method up to date?
joeross Yes, we keep the equity curve up to date every day.
1234leso joined.
Jack Exactly and how do I determine that? By the percentage gain or loss that the index has traded at in the last 2 weeks
joeross Hi leso
1234leso Hello Joe and all
joeross Jack: I just look at which one has been outperforming the other one for about 2 weeks.
crosten I am considering to purchase the profit popper, is it possible for me to view the equity curve first?
joeross crosten: Yes it is
SusanL The link for the Profit Popper Equity Curve is: http://tradingeducators.com/other_products/performances/tradingmethods.htm
joeross crosten: I will send you a picture of it.
Jack So if the dow is making higher % moves up and down than the s&p then I would buy YM sell ES?
crosten thanks
joeross Jack: Yes. Percentage moves is a good way to tell if one is stronger than the other.
Jack Thanks Joe, Simple is best...
joeross Jack: agreed, simple is best

crosten

 

 Joe what do you think of what the fed is doing, last week they drop the tightening bias, yesterday Bernanke said inflation is high, and said that the market is wrong that they drop the bias, what is your opinion Joe ?
SusanL Hi 1234leso :) welcome to Joe's live chat ;)

joeross

 

 crosten: The fed is between a rock and a hard place. They really don't know what to do. If they raise rates they kill the economy and the housing and stock markets. If they lower rates, the dollar could easily go into free-fall. So since they don't know what to do, they do nothing.
Jack Susan, can you contact acman and have him email me about trading spreads?
SusanL Sure Jack, will do that right now for you
joeross I am going to post the link to an article I posted on our forum. I think you will find it to be a worthwhile read.
joeross http://tradingeducators.com/forum/showthread.php?p=2838#post2838
joeross The article has to do with how your human spirit works with your trading.
crosten Bernanke was so clear yesterday, unlike Mr. Greenspan
1234leso Thank you Susan. Joe I'm reading a book that refers to cars and handles when trading the S&P. Do you know the origin of these terms.
joeross leso: a car is a contract. But I've forgotten what a handle is :(
Jack Good stuff Joe! I meditate each day before trading, visualizing successful results at the end of the day and see myself smiling...
crosten Joe, did you take any trades today, if yes what are they?
joeross leso: cars and handles are futures trading terms from the trading floor.
Jack I also have this little device pop-up and remind me to take 5 slow deep breaths, that I'm a profitable trader, etc.... http://www.motivator.ws/motivator/
joeross Interesting, Jack
Jack It's free...
joeross I got robbed today in E-Wheat. I had 2 points and my fill was 3/4ths of a point.
joeross Bad slippage and too wide of a spread in the Wheat, also rather thin volume.
joeross At least it was a win.
Jack Joe, your not following Joe's rules...
Jack Never trade thin markets..
joeross I have been experimenting with E-wheat. I have to find out at what level of volume (if any) the fills become good (if ever).
SusanL Jack, I wrote to Acman and gave him your email. It's now up to him to get in touch with you.
Jack That's all I can ask for... thanks

1234leso

 

 Joe do you think that at least sometimes that technical patterns are deliberately created by market makers especially in small stocks? Also any idea of the derivation of these terms? Thanks Joe.
joeross leso: I really don't think technical patterns are created by market makers.
joeross leso: a car refers to a railroad car. One contract of corn was first 3,000 bushels and then later 5,000 bushels, an amount you could fit into one railroad car.
joeross But for some reason I can't remember what a handle is.
joeross Maybe if you give me sentence where it is used I can remember.

Jack

 

 Oh Joe I've found this Hybrid you have to see to believe.. It's in pre-production in California but being hand built in Europe.. Sorry it's off topic but I knew Joe would appreciate it... Watch the videos! http://www.flytheroad.com/
1234leso I ask because I witnessed a stock rising when there has been substantial selling after the stock has fallen
tipiring joined.
crosten Joe, do you trade wheat electronic or pit?
joeross Thanks jack: I'll check after the chat.
joeross leso: It's probably seen as a good chance to get in cheap.
joeross crosten: I've been trying to trade wheat electronically (E-wheat). Right now the volume is about 1/2 and 1//2 between the pit and the computer.
1234leso thanks Joe. What is the best remedy for being unable to pull the trigger?
crosten All this while, you have been trading wheat in the pit?

joeross

 

 leso: a little trick I came up with years ago to help a guy in Canada was to pick a liquid market and simply buy at the market. Immediately turn around and sell at the market. Just keep doing it. Blind buy and blind sell. You know what? At the end of 1 hour he had made $1,200 :)
murra Joe, I spend much time to analyze the charts. Can i ask you a question?

joeross

 

 crosten: I am trading wheat electronically (E-wheat). The trade was over by 10AM this morning. I made a huge $75.30 on 2 contracts. I was testing to see how the fills would be. They are not good enough for me to trade E-wheat.
joeross murra: sure ask me your question.
crosten I mean for the past year or so am I right to say that you day trade wheat on the pit?
joeross crosten: I have never day traded wheat in the pit. I short term traded wheat in open outcry based on the daily chart.
crosten Joe, I have read your book but I can't find what a cluster looks like, is a cluster the same as matching congestion?

Jack

 

 God I love that little trick about pulling the trigger.... I bought YM and sold ES spreads... And I would liquidate them at the end of every hour... I broke even usually but it sure helps getting you to pull the trigger...
joeross Ah, Leso I just remembered what a handle is. :) A handle is a futures contract traded at an even number, like $1.00, or an exact 100 points.

murra

 

 Can i use same sort of trick to exclude immediately that are not equivalent with my parametric and make visible only the markets in trend or correspondently with my parametric? Do i need software or is there economic solution?
joeross So if a contract is traded at 624.00 or 4 even, and moves up to the next handle, then it would be trading at 625.00 or "25 even"
roquiasson joined.
joeross crosten: Take a look at a 30 minute bond chart today (from 1400 CST yesterday to 0700 CST today and you will see a cluster.
1234leso Great stuff. Thanks Joe, a while back you said you were learning to use ninjatrader, is this the platform you use for all outright futures trades?
crosten Are you referring to the 30 year bond Joe?
joeross murra: I will try to digest your question and answer you in an email.
murra tk you joe
joeross leso: I am using Ninja for all outright futures trades.
joeross crosten: Yes, the 30 year bond.
1234leso Joe, would you please take a look at the hourly 30 year electronic bond, is that a beautiful looking ( nearly) 123 low, would you agree?
1234leso Ninjatrader seems to be the bees knees but it's too complicated for me
joeross leso I see the 1-2-3 low, but there have now been too many bars (4) since the #2 point to be able to use the Traders trick.
Jack leso, I haven't heard that expression "bees knees" in a coon's age..
crosten Joe how many markets do you day trade on a typical day?
joeross leso: I don't do anything complicated with it. I don't even try to program it.
joeross One of these days I'll read the manual.
joeross leso: I made some huge ordering mistakes while learning Ninja, but I ended up winning
crosten Joe I am looking at the 30 year bond now, so a cluster is a very tight trading range right?
joeross crosten: Yes, very tight and very flat. No swings up or down.
crosten Joe how many markets do you day trade on a typical day?
joeross crosten: No more than 2. Today I couldn't get my trade in the bonds or the notes, so I went to the wheat.
crosten Why can't you get your trade in the bond or notes today?
joeross crosten: Because the setup I look for wasn't there. The entry signal did not happen.
crosten Joe, are you currently long gold?
joeross crosten: I'm currently flat gold.
SusanL If anyone is having trouble seeing the chat, this is where you can download the java software for the chat http://java.sun.com/j2se/1.4.2/download.html
crosten Joe do you have any position trade currently?
1234leso Nice one Joe. Yes that's what i thought. Joe if trading electronically and any part of a 123 appears before or after the pit open or close would you trade it.
joeross crosten: No position trade, not at the moment.
joeross leso: Yes, I would trade it.
crosten Joe, what do you think about the big report coming up for wheat tomorrow?
roquiasson Joe, do you see the bullish EUR/USD trend ending or changing soon? thanks
joeross crosten: Are you sure it wasn't today. Wheat made a huge move about an hour ago.
joeross roq: I think it will go to at least 140 very soon.
joeross Well man and women, it is time for me to stop. I have lots of work to do so, I must leave you.
crosten I thought the report was tomorrow.
joeross crosten: Something made it take a huge upward spike today, but you are right the report is scheduled for tomorrow.

1234leso

 

 Joe, most traders in market wizards i think have blown out at least one account and i don't think you have apart from the training you received and discipline you have. Why haven't you?
Jack Thanks Joe! Thanks Susan... These hours fly by!
murra hello joe and everyone good night
1234leso Thanks joe learned some stuff tonight
joeross leso: I am very careful and I try to stay humble and not get to thinking I'm some kind of big important trader.
SusanL Thanks for joining the chat! Have y'all a great weekend!
crosten thks joe
joeross good night, ciao, Tschüß,
Jack left.
joeross bon nuit
SusanL roquiasson, you need to come sooner next time ;)
1234leso bye all

END OF CHAT

Next Chat with Joe Ross:
Thursday, April 5, 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)

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