Trading Educators Inc. - Joe Ross - Day Trading and Online Trading

Euro Chat with Joe Ross

Chat log from: Thursday, June 21, 2007

	maxdata joined.
	joeross joined.
joeross	Welcome to the chat
maxdata	Thanks
joeross	Any comments or questions?
joeross	Do you trade gold?
maxdata	Yes
maxdata	i do
maxdata	Also soybeans
	crosten joined.
crosten	hi joe
crosten	Joe, is there a psychological reasoning behind a range?
crosten	I mean prices in a range?
maxdata	You use options in gold trading?
joeross	Looks like gold may be putting in a bottom. There is a 1-2-3 low on the daily chart.
joeross	Hi crosten. I think there probably is a psychological reasoning behind a trading range.
joeross	It seems that during a trading range a couple of things are happening. 1. Prices are pretty much at fair value in the eyes of traders. That means sellers are willing to sell and buyers willing to buy. 2. Supply and demand can pretty much be eliminated as a factor. It takes real demand to cause a market to trend up and and oversupply to cause a market to trend down.
joeross	max: I have used gold options many times in trading the gold market.
crosten	Great answer.
crosten	Joe, are you looking at the futures gold or spot gold?
joeross	crosten: gold futures
joeross	I'm thinking to write about it in this week's chart scan.
crosten	joe if we continue to have a down day tomorrow, that wouldn't be a 123 right ?
joeross	crosten we have a 1-2 in place. If we get a higher high and a higher low we will have a 1-2-3
joeross	low.
	nathan joined.
nathan	Hi
joeross	Hi nathan
crosten	Joe, are you skeptical about placing a trade based on 123 low, if you look at the overall trend it is down?
nathan	joe when trade bonds and want be in before reports, how do you know which direction?
joeross	crosten: if you look at the overall trend in gold, it is a rising coil on the weekly chart.
maxdata	Do you trade the eminis?
	murra joined.
joeross	nathan: The only way I know of to be in before the reports is to be ready to buy a high breakout or sell a low breakout. You have to have everything in place, all orders possible ahead of time.
joeross	max: This year I have moved to the e-mini Russell.
murra	hi joe and all
joeross	hi murra
nathan	Just like easy bond? or else ways?
joeross	nathan: Yes, just like Easy bonds.
crosten	Great! Joe, why do you prefer to trade the emini russel compared to the mini snp ?
nathan	Is easy bonds the best timeframe for entering in bonds general?
murra	The fourth attempt of b/o trading range generally is genuine but the fourth b/o of envelope or the explosion joe?
joeross	crosten: In my opinion the e-mini S&P is an ugly, difficult market to trade. The point size is too small to be worth trading. The e-mini Russell gives you 10 ticks to a point and $100. It moves quickly. E-mini S&P is only 4 ticks to the point and $50. That's not worth trading in an ugly market.
joeross	nathan: I like the hourly charts for trading the bond method. But the daily bond chart is also very good at times. Lately, it has been excellent.
crosten	joe , ICE is buying the emini Russell , what are you going to do ?
joeross	murra: 4th time through the envelope would be my choice.
joeross	crosten: I don't know what you mean by ice is buying the e-mini Russell. Why would the CME want to sell it to them?
crosten	ICE is buying the contract i read it in the news ? Note: (crosten is correct. ICE has purchased the exclusive rights to the entire set of Russell Indexes. It will disappear from the CME in August 2008).
crosten	Jo, after years of trading, do you see a drop in volatility during the summer months? A lot of people say that volatility will drop in the summer months as traders are taking a holiday.
nathan	What do you trade bonds daily?
joeross	crosten: That is not something I've ever noticed, at least not in the futures.
joeross	nathan: Easy bonds on the 60 minute, and other setups on the daily.
joeross	Other bond trades, that is.
murra	For e-mini russell which time frame joe is better.
maxdata	Do you trade the FED news?
joeross	murra: I like the 30 minute ER best. But there is also a lot of action on the 5, 10, and 15 minute as well.
nathan	What i meant is: do you prefer to trade in bonds trends or reversals or...?
crosten	Joe, at least not in the futures, what do you mean by that? Foes that mean the spot currency or stock market will have a drop in volatility?
joeross	max: I trade FED news only as I see the result of it in the market.
joeross	nathan: I like bond reversal bars a lot on the daily chart.
maxdata	Where do you trade most?
joeross	crosten: I don't think volatility will drop in the currency markets. There is no reason for that to happen just because it is summer. But i can see where it might drop in the stock market.
joeross	max: Most of my trades these days are in gold and in bonds.
crosten	joe in your chart scan last week you wrote the following - Did you know that the probability of financial ruin of a system 50% accurate with a 1 to 1 pay off risking 10% of capital on each trade is .99%; with a 2 to 1 payoff, the probability of financial ruin falls to .008%? Where did you get these statistics from ?
murra	In your opinion which is the best way to trade e mini russell?
maxdata	Where would think entering ZG?
joeross	crosten: From a friend of mine who researches such things. He writes a very expensive private newsletter.
joeross	murra: I like reversal bars and train tracks. :)
crosten	What newsletter is that Joe? I like to read on stuff like that.
joeross	crosten: It is not a newsletter you can get. It is very private and sold as research to very large trading firms. Subscriptions are extremely limited in number.
maxdata	Can you say the name at least?
joeross	I get the info from him privately because we are long-time friends.
joeross	max: I cannot say the name without compromising my friend. He is not supposed to be letting me read that letter.
maxdata	I mean the company that writes that letter?
joeross	max: I cannot do that.
maxdata	ok
murra	i don't know if i can ask.. look a emini russell 15 minute is forming a good 3 segment is it right?
crosten	Joe, what is train tracks?
joeross	crosten: come to a seminar. I teach it there.
maxdata	Where are your next seminars?
murra	::up
maxdata	Shat is that segment murra?
joeross	murra: I looked. Yes it is right.
joeross	max. Next seminars are in Italy and Germany in November.
crosten	Joe, can you please give me an idea of what train tracks is? Is it a range or something like that? pls
joeross	crosten: Please don't start with the begging. It makes me uncomfortable. There are some things I teach only at seminar and in private tutoring.
nathan	Do you trade reversals like in the strategy where bands need to be flat or do you trade them other ways?
maxdata	You mean bollinger nathan?
nathan	yes
joeross	nathan: I like them at the end of trends and swings. But they are also good with Bollinger Bands.
maxdata	Private tutoring is only available in Texas?
joeross	max: it is also available in Europe, if we can arrange the dates ahead of time.
maxdata	You come to the country you mean...
maxdata	What is the cost?
joeross	I gave murra private tutoring in Italy. Max where are you living?
crosten	Ok, Joe, you like to trade reversal bar on the 30 mn? Why do you love to trade on higher time frame?
joeross	max: I do it in whichever country I am in when I am in Europe.
maxdata	Ah ok.
joeross	max: 1,500 euros/day
maxdata	normally its 3 days?
joeross	crosten: take a look at the beautiful reversal bar on the 15 minute ER2 this morning. I like them even Better on the 30 minute. The higher the time frame the bigger the moves usually.
joeross	max: As many day as you need up to 3. 1, 2, or 3.
joeross	What country are you in, max?
crosten	Joe, do you trade breakout on the e-mini russell?
joeross	crosten: Breakout of what?
crosten	Breakout of highs and lows? Like ross hooks.
maxdata	Spain
joeross	crosten: If it is a Ross Hook, I trade the Traders Trick.
nathan	When reversals have longer range do they have a higher rate of failure?
joeross	max: It would not be too hard for you to come to Italy or Germany.
joeross	nathan: Sometimes that is true. If all the momentum is used up on the one bar, then the next bar won't usually go so far.
crosten	Joe, do you believe that someone can make a living just trading the ross hook exclusively?
maxdata	You could come also to make 3 day holiday in Spain... ;)
joeross	crosten: I know for a fact that traders make a living trading the Ross Hook exclusively.
crosten	Great
joeross	max: When I travel there are two of us. That means extra airfare, food, and hotel costs. You would have to pay that.
maxdata	Two?
crosten	Joe, can you go and have a holiday in Asia?
joeross	max: Yes. At my age, my wife doesn't like me to travel alone.
maxdata	Ok got it!
maxdata	Well done!
maxdata	You plan to come to Spain?
joeross	crosten: Asia is too far for me to go. I do not do well traveling long distances. I have to be very careful to not get pneumonia.
joeross	max. I think perhaps next Spring there may be a seminar in Barcelona.
maxdata	Ah ok
maxdata	Difference between private and seminar?
nathan	Is there a difference between your U.S. and your European students?
joeross	max: Private is tailored to your specific needs.
murra	But we can wait a congestion and waiting we can try to trade b/o of consequential long reversal bar is it right Joe, please?
maxdata	One day is 8 hours?
joeross	nathan: There are cultural differences and so there are differences in the way students approach the markets.
crosten	Joe, do you trade the corn market?
joeross	We have many good traders in italy. In Switzerland we have some of the best in the world who are our students.
joeross	murra: Yes, it is right.
nathan	Well, cheese seems to be healthy
joeross	crosten: Not very often. I used to trade it a lot, but not anymore.
joeross	max: One day is from 9AM to 4PM with 1 hour for lunch.
joeross	And a few breaks for lavatorio.
crosten	Joe I realize that you do no trade the yen, which currency pairs do you trade ?
joeross	crosten: I don't trade currency pairs unless it is absolutely necessary. I despise forex trading, and would rather trade in currency futures.
joeross	crosten: I trade yen with Sushi Bar method. But I do it in the futures.
murra	for emini russell which hours is better Joe?
nathan	Do you expect sfr to rise?
joeross	murra: 8:30-10:00 AM Chicago time.
crosten	What is the reasoning behind that Joe?
crosten	I mean the timing.
joeross	Gentlemen: Thanks for a very nice chat. I will see you again next week. It is time for me to go to work.
joeross	Ask me next time, crosten.
nathan	Thanks Joe, bye
crosten	thks Joe
joeross	Bye to all: Have a good evening. Don't eat too much pizza, or sausage.

Next Chat with Joe Ross:
Thursday, June 28 , 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)

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