Euro Chat with Joe Ross

Chat log from: Thursday, June 07, 2007
joeross joined.
crosten joined.
crosten Hi joe
joeross Hi
crosten How was your trip in europe?
joeross Very good.
crosten Joe can you comment on the market today, Equities and bonds are down usually they move in the opposite direction ?
joeross crosten: It used to be thought that they moved in opposite directions. But in the past 10 years they often move the same direction.
crosten Joe, why do you avoid all yen trades?
joeross crosten: I have seen too many people wiped out trading the yen. It can make sudden and disastrous moves if you happen to be on the wrong side of the trade.
crosten Joe, do you change your strategy when trading in the summer months?
joeross crosten: I change my strategy when the market dictates that I should. It has nothing to do with the season of the year.
crosten Great! Joe do you look at cycle indicators?
joeross crosten: I don't look at cycle indicators and very little of any other kinds of indicators.
crosten Joe, did you avoid the yen, after watching people get wiped out because it is a difficult market to trade?
joeross crosten: Mostly because of friends of mine who got wiped out. I still trade it sometimes. Our Sushi Bar yen method works just fine. But I would never, ever, hold the yen overnight.
joeross The Japanese government is always intervening for the yen. They are irresponsible loud mouths and they are always trying to suppress the yen prices.
joeross One of the days, the carry trade will stop borrowing in yen and I believe at that time it will explode.
crosten Joe when your friends got wiped out, is it because they were not disciplined?
joeross crosten: That is correct. They failed to have protective stops in the market.
crosten Joe, what method do you like to trade the Russell? trend trading, breakout, range trading etc ?
joeross crosten: on the 30 minute Russell chart you see very few trends. So I trade breakout methods.
crosten


 Joe why do the currency futures and currency spot move in together even though they are in a different market ? I just don't get it; different market different people moving the market right ?
joeross



 crosten: Only partly right. Arbitrageurs trade the spread between cash and futures. In addition, the futures are based on the currency. If the futures vary too much from the cash, the arbitrageurs will enter the market and their actions will narrow the spread.
joeross



 For example: if Yen futures were to move much higher than yen cash, arbitrageurs would enter the market and sell the futures and buy the cash. Their selling of the futures would tend to make futures prices fall; their buying of cash would tend to make cash prices rise. That would narrow the spread.
crosten They must have a ton of money to do that?
joeross crosten: Yes they do. We are talking about tens of millions in a trillion dollar market.
joeross The banks and big brokers have that kind of money.
crosten Great!
crosten Joe when are you starting your online day trading course, I am looking forward to it ?
joeross I do not know the dates for the online day trading course. But The Law of Charts on line course is scheduled for June 22 and the online spread trading course is scheduled for August 22.
joeross I don't know what or when will come after those two.
crosten I really hope you will do the online day trading Joe :)
crosten


 Joe I see that you trade on higher time frames 1 hr or 30 min, do you still use any indicator at this time frames or do you find that they do not work at higher time frame for day trading ?
joeross Crosten: I sometimes use a moving average to show me the longer-term trend.
joeross I hardly ever use any other indicators. When I do use any indicator, it will always have a very special and unique use.
crosten


 Joe, you mention earlier that the Japanese government is intervening in the yen, that was a couple of years ago, do they still intervene this past couple of months ? If they do intervene what are some signs to look out for .
joeross crosten: They are constantly intervening in the yen.
joeross crosten: where do you live?
crosten Singapore
joeross The yen intervention signs are speeches by big-mouth Japanese officials.
joeross Especially the guy who is the head of the Central Bank.
crosten



 I am always surprised that you are able to day trade at a higher time frame, do the big professional traders at goldman and other trade higher time frame like you or do they have small time frame for day trading?
joeross crosten: I don't know what they do.
crosten


 Joe, do you have any idea of how to day trade the grain market, wheat, corn;, they tend to spike in the first few minutes of trading, there is no clear directional move from my observation, how do you approach the grain market?
joeross crosten: I scalp that opening spike move. But it is not easy, because you get a lot of slippage.
crosten I suppose you have to be fast at doing that.
joeross Fast and lucky.
joeross The only way I can avoid the slippage is to use stop limit orders with the stop and the limit at the same price. Lots of times I don't get filled.
joeross If prices go past you and you don't see an immediate fill, you have to quickly close out all parts of the trade. Objective and protective stop.
crosten Great!
crosten Joe, when you are day trading the currency futures what stop loss do you use per contract?
joeross There is no set amount, crosten.
crosten Joe, for scalping the grain market, which market is suitable corn soy bean etc.?
joeross Wheat seems to be best.
crosten Thks, a million thks, I''ll do some observation and try to come with a method.
joeross crosten: ok. See you next time.
joeross bye
crosten take care

END OF CHAT

Next Chat with Joe Ross:
Thursday, June 14 , 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)

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