Euro Chat with Joe Ross
Chat log from: Thursday, August 2, 2007
| crosten joined. | |
| beginner joined. | |
| JoeRoss joined. | |
| beginner | Hi Joe |
| JoeRoss | Hi |
| crosten | Hey joe, where were you last week? |
| JoeRoss | There was an emergency regarding some legal work that had to be done. |
| JoeRoss | I came late, and had a lovely chat with one guy. |
| crosten | Joe, I wanted to ask you last week, but what is your view on the market drop last week? |
| JoeRoss | The chat log from last week is online at our website in case you want to read it. |
| JoeRoss | My view is that markets go up and down. The drop was overdue. |
| beginner |
I have a question concerning the True trend method ... when you use this method, do you just connect correction to correction or do you look for trading ranges/congestions and stop trading .. ? |
| crosten | Joe, are you seeing a market top? |
| JoeRoss | beginner: it is a trend trading method. |
| JoeRoss | crosten: which market? |
| crosten | equities |
| JoeRoss | I told you gold would take a dump and you laughed and said I was wrong. But the prediction came true. |
| JoeRoss | No, I don't see a market top. I see a lot of fear and near panic in the market, but not a top yet. |
| JoeRoss | I think we will be seeing a rally very soon, maybe even today. |
| beginner | So when you identify a trading range, you don't mind it and continue trading the true trend method? |
| JoeRoss | beginner: No. If prices go into a trading range I stop using the True Trend Method. |
| beginner | Thank you Joe |
| JoeRoss | As I said, it is a trend trading method. |
| beginner | I have tried the method on several charts ... and the results were great. |
| JoeRoss | beginner: If the method was not great you wouldn't find it in my book. |
| beginner | :-) |
| JoeRoss | I have a quiz for you today. Name the top five commodity trading indexes. |
| crosten | Joe, is a cluster and a range the same? |
| JoeRoss | crosten: Almost. A cluster can be any length as long as it is very tight from high to low. |
| crosten | Commodity index ? Gold bug index ? |
| JoeRoss | Name the top 5 commodity indexes. |
| JoeRoss | Can you name even one? |
| JoeRoss | You'll have to come back next week for the answer. |
| JoeRoss | :) |
| crosten | Are the commodity index useful? |
| beginner | It is fun with you Joe :) |
| JoeRoss | Yes, they are very useful. |
| JoeRoss | It always amazes me what people don't know, yet they are trading. |
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| nathan joined. | |
| nathan | Hi everyone |
| JoeRoss | For example: There are 9 futures exchanges operating in the U.S. How many of them can you name? |
| JoeRoss | Hi nathan |
| beginner | CBOT, CME, NYBOT, NYMEX ... |
| JoeRoss | That's 4, but there are more |
| crosten | ICE, Philadelphia |
| JoeRoss | ICE is right, but not Philadelphia, although they have options on futures. |
| beginner | KCBT, MGEX |
| crosten | Comex |
| JoeRoss | beginner: Correct but there are still 2 more |
| beginner | WCE |
| JoeRoss | WCE is in Canada |
| murra joined. | |
| JoeRoss | Hi murra |
| murra | Hello Joe and all |
| nathan | Joe, why is zg not or only few traded in July and August? |
| nathan | Sorry August and September. |
| crosten | joe do you take trades based on pivot points? |
| JoeRoss | nathan: The July contract is there only for people who have a absolute need for it. The biggest months for gold are December and April. |
| murra | How is the liquidity during August on the mini sp and mini russell Joe? is the same or do conditions change for the summer period? |
| beginner | Joe, just for clarification, every time, when I identify a trading range or a congestion do (when trading the true trend method), I have to stop trading the method .. and start trading it after the breakout from these areas? |
| JoeRoss | nathan: September is just like July, only there if needed. August gold is ready to expire. The volume has moved to October and December. |
| nathan | Thanks. |
| JoeRoss | crosten: It depends on how you define pivot points. |
| JoeRoss | murra: Volume drops off a little bit because of vacations, but the drop is insignificant. |
| JoeRoss | beginner: Correct. |
| crosten | The pivot points based on the formula. |
| JoeRoss | crosten: Which formula is that? |
| crosten | I can't remember but it is based on the close the high and the low. |
| beginner | Joe and what about holidays? were you somewhere? |
| JoeRoss | crosten: I don't know either. |
| JoeRoss | beginner: Which holiday? |
| crosten | joe do you buy new highs in the currency market ? |
| murra | Why you prefer emini russell more than emini sp joe? |
| nathan | Why do you expect Dow to rally short term? |
| JoeRoss | crosten: You mean new highs? If so, yes,I do. |
| beginner | I wanted to say ... vacation:) |
| JoeRoss | murra: I prefer Russell because it has much better movement. |
| JoeRoss | nathan: I expect Dow to rally because at some point people who are short have to take profits. When they buy back their shorts, the market will rally. |
| JoeRoss | beginner: I usually take my vacation in the last 2 weeks of December. And some days when I am traveling to different countries. |
| nathan | Didn´t they buy back yesterday, who was that? |
| JoeRoss | I will be taking one week in October this year to attend a wedding in Germany. |
| JoeRoss | nathan: Yes they were buying back yesterday and today. |
| murra | Which market are you speaking about Joe and nathan? |
| beginner | Joe, when trading a TTE, how much space would you like to see there if you pay for example $6 RT? |
| nathan | Are the US consumers already hit hard by rising interest rate or isn´t it too grave? |
| nathan | murra: Dow. |
| JoeRoss | nathan: So far we have not been hit hard by rising interest rates. |
| crosten | Joe, what charting software do you use to plot point and figure charts? |
| JoeRoss | beginner: I want to see enough to cover costs plus an amount that I think I should be able to achieve. |
| JoeRoss | The amount depends on the market and time frame. |
| JoeRoss | crosten: I am using Genesis Trade Navigator. |
| crosten | Yes joe is see that gold is at 670 now, but it still hasn't dropped much. |
| beginner | For example...daily chart of soybean oil ... is $100 enough? |
| JoeRoss | crosten: But you have to admit your analysis was wrong |
| JoeRoss | beginner: Sure, 100 would be enough. |
| nathan | At what price do think the dollar is cheap enough to buy? |
| JoeRoss | nathan: Do you mean buying the dollar index? |
| crosten | I managed to get out before it went down, phew! |
| JoeRoss | crosten: Good for you. Nice move. |
| crosten | Joe, what moving average do you use for day trading? |
| nathan | I don´t know dollar index, but to select dollar as account currency. |
| JoeRoss | crosten: I don't use any MA for day trading. |
| murra |
emini sp an the daily chart, is in congestion from 27-7 and have make an interesting Rh yesterday, when in the last time of day it goes to close in the measuring bar for open low and close high we must aspect from the b/o but it is interesting trade it intraday with this situation what you think about joe? |
| JoeRoss | nathan: You will see small dollar rallies, but the dollar has been going down for over 30 years. So I don't know how far it will go before it becomes a buy. Maybe never. |
| crosten | Joe, which market do you day trade using tick charts? |
| JoeRoss | murra, it sounds like an interesting strategy. The only way to know if it is good is to trade it. |
| JoeRoss | crosten: Any and all markets |
| JoeRoss | I will trade anywhere I think I can make some money. |
| crosten | joe do you use tick chart side by side with time charts for day trade? |
| JoeRoss | By the way, I read a very interesting statistic today: There are now more euros in the world than there are dollars. |
| JoeRoss | crosten: No. When I use a tick chart that is all I look at. |
| nathan |
Something I don´t understand: when using tick charts, do you need to sit in front of the monitor steady because you don´t know when the number of ticks is reached? |
| JoeRoss | nathan: You don't need to sit in front of the monitor. You take your signal, enter the trade and wait to see what will happen just as with a time chart. |
| ronnie joined. | |
| nathan | But by breakouts you have to wait till the bar has finished e.g. |
| JoeRoss | nathan: That depends on how you trade. |
| nathan | What would be an alternative? |
| crosten | Joe, does that mean that you don't use time charts for day trading? |
| JoeRoss | nathan: If you choose high volume markets you will see the tick bars change quite often. |
| JoeRoss | crosten: I use time charts and tick charts. |
| nathan | Then one has to watch? |
| beginner | Joe, have you ever stayed a long time in a losing trade and hoping it will turn into a winner? |
| JoeRoss | nathan: You don't have to watch tick charts anymore than you watch time charts. |
| crosten | Joe, which market do you use tick charts in particular? |
| JoeRoss | Tick charts force you to trade when the market has the most liquidity. |
| JoeRoss | beginner: If "ever" means a long time ago, the answer is yes, but we are talking about a very long time ago. |
| JoeRoss | crosten: I told you, any and all markets. I will use them when a market I want to trade is not trending. |
| beginner | Could you describe that trade? |
| crosten | joe how many monitors do you have ? |
| JoeRoss | beginner: Let me think about it. I'm not sure I remember which one it was. |
| JoeRoss | crosten: For trading, just 2. |
| JoeRoss | One for each eye |
| ronnie | Hey Joe how's it going? Quick question for you... do you ever enter scalps on limit orders? |
| JoeRoss | One eye for my chart and one for my trading platform. |
| JoeRoss | ronnie: Nope |
| nathan | difficult if one has an eye on the back of the head ::biggrin |
| JoeRoss | Stop or Market--on scalps I want to be filled. |
| crosten | Joe, what is your worst trade? |
| ronnie | i just have been getting whipsawed taking breakouts intraday. |
| JoeRoss | crosten: Worst trade was in the S&P 500 pit trading. I lost $45,000 in 20 minutes. |
| crosten | wow, considering that you trade many markets I am surpise that you have only 2 |
| JoeRoss | ronnie: Then lengthen your time frame or use tick charts. |
| crosten | Can you describe the trade Joe? Was it because of discipline? |
| murra | How did it happen Joe? |
| ronnie | i switched from tick charts to 10 min bars lately. |
| JoeRoss | crosten: I trade only one market at a time for day trading. If I have longer term trades, I look at them only now and then. |
| ronnie | But it's hard to get 1:1 scalp on a breakout. |
| JoeRoss | murra: I was teaching a broker and I wasn't paying attention. The market ran away from me. |
| JoeRoss | I learned to not do two things at one time. |
| JoeRoss | I turned a winning trade into a loser. |
| JoeRoss | ronnie: Which market? |
| ronnie | er2 |
| ronnie | I used to get 1 point all the time. |
| ronnie | Lately, just getting killed. |
| JoeRoss | ronnie: I won't go lower than 30 minutes on ER2 |
| ronnie | I used to find many profitable scalps trading ledges and inside bars on 10 min charts. |
| nathan | But that´s life, you think you lost but finally you win on knowledge and wisdom. |
| crosten |
Joe, do you think about the money when you are trading ? Tom Baldwin says he never thinks about the money when trading? How did he do that? I can't stop myself thinking about the money when trading? |
| ronnie | Now they seem to be more false and take a few times to actually go through. |
| JoeRoss | ronnie: Markets change. Get used to it. |
| ronnie | That's why I asked about the limit orders. |
| JoeRoss | crosten: I never think about the money. I think about executing the trade properly. |
| ronnie | Put one in a few ticks higher after the first breakout attempt. |
| beginner | Joe, did the losing trade turn into a winner? (the trade long time ago) ... |
| JoeRoss | And I think about following my plan. |
| crosten | joe what makes Tom Baldwin such a great trader ? Have you met him? |
| JoeRoss | ronnie: You are placing yourself into the noise. Back out and use a longer time frame and get away from the noise. |
| ronnie | Should I increase my stop as well? |
| JoeRoss | beginner: No the losing trade just got worse until I couldn't stand it anymore and finally had to get out. |
| ronnie | Since I noticed inside bars on 30 mins are usually almost good for 1-2 points, but with a 2 point draw down. |
| crosten | Joe, is the noise in today's market created by the retail traders? |
| nathan | ronnie: I also stopped trading 1-2-3 in ER2, maybe change what you´re trading, ER2 has still good trades. |
| nathan | I found much better now. |
| JoeRoss | crosten: I never met him. Why I think he was great is because he took an entire year to figure out the bonds before he began trading them. |
| ronnie | i like the daily volatility, and cleaner bars than the es, but lately I just have been getting creamed. |
| nathan | Like joe says time changes and markets too. |
| JoeRoss | ronnie, I use 1.5 stop for ER2 30 minute. |
| ronnie | i took a month off and just started again last week. |
| ronnie | Same profit target as well Joe? |
| crosten | You mean he did not trade for 1 year before putting money in? |
| JoeRoss | Hold on no more questions. Let me answer the ones that are there and then say good bye. |
| JoeRoss | ronnie: 1.5 stop, 1 point target. |
| ronnie | Thanks |
| murra | For 15 min how many points joe? |
| JoeRoss | crosten: a lot of the noise is created by the retail traders. |
| ronnie | Have a good day Joe, bye everyone. |
| beginner | Bye Joe and thanks a lot! |
| JoeRoss | crosten: He just stood in the pit and watched for one year. |
| nathan | Thanks for your time and wisdom joe. good night |
| crosten | Wow! |
| JoeRoss | murra: I don't know. I won't trade ER2 on 15 min. 30 or 60 min. |
| murra | Hello joe and tky by everyone. |
| JoeRoss | Bye everyone. Hasta la vista, Tschuss, Arrive derchi |
| JoeRoss | The answer to the quiz will come next week. |
Next Chat with
Joe Ross:
Thursday, August 9, 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)
COME BACK WITH YOUR TRADING QUESTIONS & COMMENTS!
