Euro Chat with Joe Ross

Chat log from: Thursday, April 19, 2007
Oski joined.
SusanL joined.
Bondtrader joined.
shlomi joined.
SusanL Hi, I'm glad you joined! We'll start in 5 minutes :)
Bondtrader Hi Susan, how are you?
SusanL I'm fine, thanks. And you?
Bondtrader Everything great here we have almost summer here in switzerland
crosten joined.
SusanL How warm does it get where you are in Switzerland in the summer?
Bondtrader 30-35 celsius
Oski Hi all
Bondtrader Now we already have 25
crosten Hey bond trader, do you trade bonds only?
joeross joined.
Oski bondtrader nice...
SusanL That's neat. Do you have a nice sun tan?
Oski Here in Dublin we have summer when the rain gets warmer :-)
Bondtrader Not yet I work to much...hihihi
joeross Hi everyone
SusanL Oski from Irland, welcome! One of these days I'd love to come and visit Ireland, smell of green pastures ;)
Bondtrader Hello Joe how are you?
quester123 joined.
joeross I'm fine, Bond. How are you?
Bondtrader Good thanks
Bondtrader Pretty impressive the rally in stocks...!!!!
joeross Yes, the rally is impressive, but you have to wonder why!!!
crosten Joe, you mention that you are long the euro for a very long time, how did you go about do it, is it through a saving account or futures?
Bondtrader Yeah it looks like when nobody knows why it is going up hihihi
joeross crosten: It is neither one.

joeross

 

 Bond: Actually, I have a pretty good idea of why. In the U.S. we have a lot of media hype about stocks and that everything is rosy in the economy. Put that together with the action of the plunge protection team and you have an artificially rising market.
PeterC joined.
murra joined.
joeross Hi Peter and Hi murra
Bondtrader And the Bonds are turning around also...
crosten Joe, can you eleborate how you go about going long euro for a long time ?
PeterC Hi all
Bondtrader Yeah I believe you....
murra Hello Joe and everyone

joeross

 

 crosten: If you ask trading questions, I will try my best to answer them. But when you ask personal questions about my finances I will not answer them. Quite frankly, it is not any of your business.
crosten I mean what instruments do you use going long the Euro?
joeross crosten: I have mentioned what it is on many chats where you were a participant. I use CDs!
crosten Thks

Bondtrader

 

 I made the experience that in the bonds and notes, the TTE entrys are still working but I have to allow more time and move the stop slower to breakeven... I'm still trading in the daily charts... what do you think Joe? Is this a general change in market behavior?
crosten Joe do you think that soros is going to short the pound like he did before, it hit 25 year high this week.

joeross

 

 Bond: I am watching the bonds and the 10 year notes every day. I was rather surprised at the move up on the CPI report. Apparently, traders are of the opinion that the economy is weakening.

joeross

 

 But there are many things that also point to high inflation and rising interest rates. It seems to all boil down to which will be the sacrifical goat: The dollar or the economy.
Bondtrader Yeah I was also still short the 10yr and got stopped out...

joeross

 

 If it is the dollar, then eventually the economy will have hyper inflation. Also if they sacrifice the dollar things will become very expensive in the U.S. and they will have trouble selling the notes and bonds. I think the FED is between a rock and a hard place as we say here in the U.S.
joeross Kill the economy or kill the dollar.
joeross I too got caught short the notes when that spike took place.
Bondtrader Sounds like trouble ahead....
crosten Joe, is soros gonna short the pound?
joeross Today was a day to take some back
joeross crosten: Why don't you ask Soros. I don't know the guy and I have no opinion about him. His actions mean nothing to me.
Bondtrader I'm waiting for a new signal...
Bondtrader Hey Joe, Raymond says hello... do you remember him?
crosten Joe which has a greater influence on gold , oil or the dollar?
joeross I don't remember him by name, but is he that friend of yours from Schweiz?
Bondtrader Yes
joeross The one who married the black lady?
Bondtrader Yes
joeross Yes, I remember him. I can picture his face.
Bondtrader He's is a lot fatter now
joeross Ouch! Not good
joeross But he has a nice family.
Bondtrader He is gona beat me up
joeross Bond: Why?
crosten Joe, which has a greater influence on gold, oil or the dollar?
Bondtrader He does not like when I say he is fat....
joeross crosten: It depends on where you live. If you live in the U.S. it is definitely the dollar, but if you live elsewhere, it might be oil.
joeross If he's fat he's fat, you are telling him the truth.
Bondtrader That's right
joeross Tell him to go on a diet. That wife is probably feeding him too much or the wrong kinds of food.
crosten Joe do you have any favourite trading books besides yours?
joeross I have heard that the Disciplined Trader and Trading in the Zone, are both good books.
joeross crosten: Of course my most favorite book is the book of Proverbs in the Bible.
Oski Yeah, Douglas... but it is a little bit harder to read than your books :-)
joeross Oski: That's because looking at yourself is a lot harder than looking at the markets.
crosten Joe do you have a rule whereby you only start trading after several minutes has pass since the market open?
Oski But Douglas covers the parts of trading which are not mentioned in yours...
joeross crosten: Yes, but it varies from one market to another.
Oski Good to combine together :-)
joeross Oski: I'm sure he does. Marc Douglas knows the pain of losing it all. I don't know that pain.
crosten How about the index futures and bond markets?
joeross crosten: I will usually wait at least 20 minutes for the indexes, and 1 hour 30 minutes for the bonds
crosten Joe do you trade European index futures, if yes which one?
joeross On the Tuesday chat one of the participants said one of the wisest things I have heard in a long time.

joeross

 

 He said: Most people are busy trying to figure out where the market will move next. But what you should be doing is figuring out what you will do next. You have no control over what the market does. The only thing you can control is what you do. The guy who said it is a very successful trader.
joeross crosten: Occasionally DAX and Eurostoxx 50
Bondtrader I totaly agree with you and that guy....
crosten Wise words there, it is one of the market wizards

joeross

 

 He may have gotten that from Marc Douglas. But wherever he came up with it, it ranks a top grade in my book. I will remember what he said for as long as I live. It was as the Brits say "spot on."

murra

 

 Joe: is always a rigid rule for any market to wait? What if a good trade happens in the first minute ( a good breakout) is it better to wait or isit good to entrer. which is the rule?
crosten Joe do you recommend any books to read on bonds?

joeross

 

 murra: If a trade meets with your parameters, I don't care when it is, you can take it. I know I would. I have rules, but I am willing to break them when I need to.
Bondtrader I should write a book everybody wants to read....
joeross crosten: I don't know of any books about bonds?
joeross Bond: Do it! There are a lot of books out there, but very few of them are worth reading at all.
joeross The vast majority are about entry signals, but they don't tell you how to trade once you get in.
Bondtrader Yeah some day I will .....
joeross Then there is all the garbage about indicators, and Gann theory and Elliott theory, and Fibonacci theory--basically a waste of time.
joeross Trading is in what that man said on Tuesday night.
Bondtrader You know what is the only tool I use to trade...?
Bondtrader A simple trendline !!!!
joeross The only thing you can control is yourself. Make a plan and if a trade comes along that fits the parameters of your plan take it.

joeross

 

 You will never know the outcome of any trade in advance. You must take trades that fit your parameters and your plan. Then control any losses that may arise from that trade, by controlling your own actions.
crosten Joe did you attend yesterday's seminar by infinity, I thought I saw you there?
Bondtrader I even stopped looking at Bollinger Bands, they only distort the picture.
joeross crosten: I was not there. I never go to those seminars. I don't want anything like that to influence me.
joeross Bond: good for you. A simple trendline is all you need.
joeross I was taught the True Trend and it works just fine.
crosten What is a true trend Joe?
Bondtrader That's very true... nothing else is of any help... it just confuses the trader.
joeross crosten: It is described in one of my books. I think the one is "Trading is a Business."
crosten Joe do you still use segment counting?
joeross crosten: I use it when I want to detect a trend while it is still in the birth canal.
zak2007 joined.
joeross Hi zak
Bondtrader trading is a business chapter 32 (in the translated german version) I don't know if in the English it is the same chapter.
zak2007 Hi Joe
joeross Still strumming your guitar?
zak2007 Of course :-)
crosten Joe which market do you use market segment?
joeross crosten: All markets when it is appropriate to use it.
Bondtrader I got so much light going on when I read that chapter....
murra I like very much segment as a method because it suggests very well a rising trend.
joeross murra: It is the best way I know of to see the beginning of a trend.
crosten Joe can you program segment counting?
zak2007 3 higher highs and an inside bar is a good long entry.
joeross crosten: I don't know I never tried to program segment counting.
murra It is like a man who came of age
zak2007 Joe do you know the infinity platform and what do you think, is it good?
crosten Joe do you use any proprietary indicators to trade?
joeross zak2007: infinity is good.
zak2007 Thank you, do you have a hint for euro futures tick bar? I have tried 800 ticks.
crosten Joe, how do you define discipline in trading, in your words?
joeross Hold on I have a very important phone call.
PeterC Bondtrader do you only trade bonds?
Bondtrader Well not anymore: bonds 10yr note, 5 yr note and eurodollars.
PeterC Eurodollars outright or spreaded?
Bondtrader I do only outrights so far...
crosten Joe, how do you define discipline in your own words?
PeterC discipline is waiting until a phone call has ended.
Bondtrader Sometimes I also use Eurodollars to hedge another position, which is a spread in a way....
crosten You're not Joe
PeterC Bond ok
PeterC thx
Bondtrader You are welcome
Mary joined.
PeterC I was never thinking about trading ED outright, I might have a look.
Bondtrader Hi Mary
Contenttrader joined.
Mary Hi all.
PeterC Hi Mary
zak2007 Hi
Contenttrader Hello everyone
PeterC Hi Cont.
Bondtrader Hello....Peter: I trade only daily charts...
PeterC Bond for positions or just breakout scalps?
quester123 Bondtrader may I ask how long it took you to become a success at trading.
Bondtrader I stay overnight....as long as it takes to reach my goals or I get stopped out.
PeterC Ok, so you probably trade TTEs and 1-2-3 breaks
PeterC Got it
Bondtrader I'm still learning a lot and I trade for 8 years
quester123 Thanks bondtrader
Bondtrader Peter : you got it
zak2007 Is anyone trading the Eurostoxx here?
joeross Hey guys, I have to go. I'm sorry about the phone call but it was very important. See you next week
PeterC cheers and good night
zak2007 bye joe
Bondtrader ok it was a pleasure
Bondtrader good night everybody
quester123 Joe
murra See you joe and all
zak2007 cu all
quester123 Bye alll

END OF CHAT

Next Chat with Joe Ross:
Thursday, April 27, 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)

COME BACK WITH YOUR TRADING QUESTIONS & COMMENTS!

Do you ever wonder how Joe Ross and his trading partners and associates are able to trade for a living and still find time to teach others how to trade? Follow this link to find out..