Euro Chat with Joe Ross
Chat log from: Thursday, September 27, 2007
| mgeo joined. | |
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| mgeo | Hi joe, did you look Canadian dollar this week, I suppose yes, any options play? |
| JoeRoss | Hi everyone. |
| JoeRoss | mgeo: I want to wait until there is less time until expiration. |
| crosten | Joe, why do people say that oil price is high due to the weakening dollar, I don't understand ? |
| JoeRoss | crosten: Oil is priced in dollars. So if the dollar goes down, oil prices rise, and oil is priced high in terms of the dollar. |
| mgeo | There are 9 days to expiration options in CAD... is that a 1-2-3 high in Canadian daily chart? |
| JoeRoss | mgeo: I think soon we will be able to sell CAD calls with little worry about CAD rising. |
| JoeRoss | mgeo: I didn't realize there were only 9 days left. I haven't been paying attention. It should be very safe now to write calls, maybe even calls and puts--strangle. |
| JoeRoss | I guess the time has just slipped away from me. |
| JoeRoss | I have been very busy lately, and have had students all this week. |
| crosten | joe i read how you use CCI in trading the Ross Hook book, but how did you use CCI to stay in a trend which you took on the BP the best trade you ever made? |
| JoeRoss | mgeo: Yes, we are looking at a 1-2 in CAD but not yet a 3. |
| mgeo | Or it's a 1 2 ...3? or continuation.... what's your idea? |
| JoeRoss | crosten: That's too complicated to go into in the chat. I would need charts and a lot of time to explain it |
| JoeRoss | mgeo: Right now we have a 1-2 high and we also have a Trader's Trick this morning to go long. My opinion (which is worthless) Is that prices will go down, because the Canadian Government does not want the CAD to stay above $1. |
| mgeo | And why is that??? |
| JoeRoss | However, the Canadian government may have nothing to say about it if the traders want to take prices higher. |
| crosten | Are you talking intervention joe? |
| JoeRoss | mgeo: The U.S. is Canada's largest trading partner. If the CAD goes high, the U.S. will stop buying from Canada. |
| JoeRoss | crosten: The Canadian government could try to intervene, but they cannot stop the traders from taking the CAD higher if the traders start buying the CAD. |
| JoeRoss | mgeo: Canada could price itself out of the market, it the CAD goes much higher. U.S. companies can buy for less somewhere else if CAD goes higher. |
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| JoeRoss | Hi sav. |
| sav | Hello all. |
| sav | Hi Joe |
| crosten | joe are you still holding onto your euro trades? the euro made a new high today seems like normal for the euro to make new highs nowadays? |
| JoeRoss | crosten: I'm still long the euro. |
| crosten | What is your target joe? 1.45 ! |
| JoeRoss | The euro is very strong right now. And it looks as though the ECB may raise interest rates again. If they do, goodbye dollar. |
| JoeRoss | crosten: Short term 1.45, medium term 1.50. |
| crosten | joe I don't suppose you sold every single dollar in your bank and bought euro a long time ago? |
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| JoeRoss | crosten: I certainly tried to do that :) |
| JoeRoss | But I have to keep some money here as operating capital. |
| nathan | Good evening and hello. |
| JoeRoss | Hi Nathan. |
| crosten | joe what do you like about CFDs? |
| crosten | New high on oil! |
| JoeRoss | crosten: CFDs are one of the most versatile trading instruments I have ever seen. Maybe the most versatile. But right now I wouldn't trade them. |
| JoeRoss | $83.00--Wow! Go oil! |
| sav | Joe if the euro is going to get stronger and stronger wouldn't it make sense to start trading the european markets which are valued in euros (i.e., DAX) than the US markets especially if you are living in Pounds or Euros. |
| nathan | I don´t know if I am right but the dow is sleeping and the market seems to be nervous? |
| crosten | What do you mean by versatile Joe, can you name good thing about CFDs? Why wouldn't you trade them now? |
| JoeRoss | sav: It depends on how often you convert dollars you win into euros. |
| JoeRoss | nathan: The market is very nervous. |
| JoeRoss |
crosten: Look up versatile in a dictionary. I can't give you a better word than that, but it is the best thing about CFDs. I wouldn't trade them now because they are not traded on a regulated exchange where everyone sees the same price. Right now CFDs are like forex, you are at the mercy of the broker. |
| crosten | joe do you use CCI to trade intraday. |
| JoeRoss | crosten: Sometimes I use it intraday, but not very often. |
| crosten | What's the indicator that you use most often on intraday ? |
| JoeRoss | crosten: I usually don't use indicators intraday. |
| crosten | joe do you trade head and shoulders, triangle? |
| JoeRoss | crosten: No. |
| nathan | This month your former easy bond is doing good. |
| JoeRoss | nathan: The revised easy bond method is doing even better. |
| JoeRoss | nathan: Did you get the upgrade? |
| nathan | No Joe, is it free? |
| crosten | joe what is the value and multiplier that you normally use on volatility stop? |
| JoeRoss | nathan: There is a $35 administrative fee. |
| nathan | Of course I'll take it then. |
| JoeRoss | crosten: There is no normal value to use on the volatility stop. |
| nathan | It's a pleasure and I am thankful anyway for the bond method. |
| JoeRoss | nathan: Write to susan and tell her you want it: support@tradingeducators.com |
| crosten | Are you saying that we should change the value every now and then? |
| JoeRoss | crosten: I'm saying the you have to curve fit it to the market and time frame you are trading and as often as every couple of days if necessary. |
| nathan | I found out that I wasn´t able to trade Andy's great Profit Popper Method, because of my well being feeling. That was hard to accept. |
| crosten | joe do you sell strangles and straddles? |
| JoeRoss | nathan: You mean you were not comfortable with it? |
| JoeRoss | crosten: Sometimes I sell strangles, but straddles, only rarely. |
| nathan | Yes because of my psyche or however it's called. |
| JoeRoss | nathan: It's good that you know that. It is always best to trade where you are comfortable. |
| crosten | When you sell options, how many days do you normally hold them ? |
| nathan | Its hard to leave money on the ground to make me feel better. But it was right to do |
| JoeRoss | crosten: I try to stay under 20 days. |
| JoeRoss | You did the right thing, Nathan. |
| JoeRoss | All traders leave money in the market, no matter what their trading style is. |
| crosten | Joe who are the traders who usually push prices to make new highs ? Smart traders ? |
| JoeRoss | crosten: When prices make new highs it is because of true demand. |
| crosten | Great answer. |
| JoeRoss | Prices can never go where there are no orders. So when prices make new highs it is because traders are willing to pay a higher price. |
| nathan | Do you know if NQ has got much slippage? |
| JoeRoss | There is either a shortage or a perceived shortage of whatever the item is. |
| crosten | Joe, which market are you currently active? |
| JoeRoss | nathan: I really don't know. I haven't traded NQ in more than 4 years. |
| JoeRoss | crosten: euro, but now that mgeo told me there are only 9 days left in CAD, I may jump in there as well. |
| nathan | I ask because of the search of new markets instead ER2. |
| JoeRoss | nathan: I know what you mean. Losing ER2 to ICE is going to make a lot of traders sad. |
| sav | Nathan, I've traded NQ and there is not a lot of slippage. |
| nathan | Thanks, sav. |
| JoeRoss | Thanks for telling us sav. |
| nathan | Good to know. |
| nathan | Unfortunately the point value is minimal in NQ. |
| crosten | Joe, what is the best book to read on money management? |
| sav | Only problem I have with NQ is the tick value otherwise I like it. |
| mgeo | What relationship do you want to see in volume and open interest when selling options? |
| JoeRoss | crosten: I have no idea which is the best book on money management. I'm more interested in trade management. |
| JoeRoss | sav: I agree. $20/point isn't very much. |
| JoeRoss | mgeo: I want a volume of at least 50, but I don't look at open interest. |
| crosten | ok then how about the best book on trade management besides yours? |
| nathan | If you have got a good method it could fit more contracts and more commission. |
| JoeRoss | crosten: I do not know of anyone who has written about trade management. Maybe someone has. |
| JoeRoss | That would be a good research project for you, crosten. |
| JoeRoss | Tell us what you find out. |
| nathan | Did anyone of you compare how his trades would have done in NQ? |
| crosten | Ok. |
| nathan | The ER2 trades? |
| JoeRoss | The last time I traded NQ was 2003, and at that time you needed to see at least a 31 point daily range to make any money in it. |
| JoeRoss | Does it have that much range these days? I haven't checked or looked at it in a long time. |
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| sav | I am going to trade the DAX as of next year and say goodbye to my beloved ER2. |
| crosten | joe what do you think about Buffet having a stake in bear? |
| JoeRoss | sav: I can't say I blame you. |
| nathan | No it doesn´t seem so. |
| JoeRoss | crosten: ????????? |
| mgeo | Joe, with your experience, do you still have down months? |
| fabio | Hi everybody.... sav sure you will have low commissions in DAX than than in ER. |
| crosten | joe what is your understanding of swing trades? |
| JoeRoss | mgeo: I can't remember the last time I had a down month. It was long ago. |
| crosten | bear is Bear Sterns. |
| JoeRoss | crosten : What's to understand? |
| mgeo | And a down week? |
| JoeRoss | mgeo: Occasionally a down week. Maybe twice in a year. |
| sav | Yes Fabio that is true but the margin required for DAX is quite high. |
| nathan | I hoped to trade ZG intraday but there's not enough volume in my opinion. |
| crosten | Do you swing trade Joe? |
| JoeRoss | crosten: I don't think about anything Buffett does. He is an investor and I am a trader. |
| sav | Yes Nathan I've tried ZG intraday every now and then. It is very thin I don't like it. |
| JoeRoss | crosten: I don't swing trade. There are much better ways to trade. |
| fabio | sav - yes but you move a lot money with 1 contract of DAX than ER.... two months ago I calculated the costs and DAX has no competitors in the world. |
| nathan | I thought there could be a 1-2-3 high in Dow next month so therefore it needs to fall. |
| crosten | Joe, are you expecting another rate cut next month? |
| fabio | Joe why with the market order it happens you will be not entirely filled (i.e. with 10 contracts) and with stop order yes? |
| sav | I agree Fabio the DAX is the way forward especially the way I trade, do you trade the DAX? |
| JoeRoss | crosten: I think they will cut .25 in October and .25 in December, but if they don't I think they will cut .50 in December. But what does it matter what I think. My opinion means nothing. |
| nathan | sav: Beyond DAX next year what are you trading now? |
| crosten | Joe, can you please start a blog? |
| fabio | sav - yes I trade DAX every morning from 9.00 am to 10.00 am. Preferably more near 9.00 as I can.... |
| sav | I tried the ES and even though I was successful it is so time consuming waiting for a setup. |
| JoeRoss | fabio: When you get a split fill or partial fill it usually means one of two things: 1. there was not enough liquidity. 2. the market was fast. |
| sav | Fabio is that 9:00am European time. |
| fabio | yes... Berlin, Rome, Paris time.... |
| JoeRoss | nathan: I started a bog 2 years ago. It is on our website. I think Andy posts things to it daily, or.... |
| sav | Do you trade the afternoons or not. |
| crosten | I can't find your blog Joe, where is it? |
| JoeRoss | crosten: Look under resources. I think it is there somewhere. |
| fabio | Joe - I thought that if I send a market order, I should be filled for all my contracts, but in paper trading I saw that it is not the case, so I always send stop order to be sure to exit with all my position if things go bad.... limit for the profit... |
| JoeRoss | fabio: You thought wrong. |
| crosten | Joe, why have you been so active selling CAD options? |
| JoeRoss | crosten: Because I'm making money with them. |
| nathan | Thanks Joe for your time and good night to all. |
| sav | Fabio, what time frame do you trade the DAX in? |
| JoeRoss | www.tradingeducators.com/resources/trading_articles.htm That's where the blog is. |
| JoeRoss | good night nathan. |
| fabio | sav- no i don't trade in the afternoon... only from 9.00 to 10.00... only one trade, right or wrong... obviously with Joe's tactics... |
| JoeRoss | It's time to go. |
| JoeRoss | See you next week. |
| fabio | I trade 5 min time frame. |
| JoeRoss | bye all |
| fabio | Ho Joe, see you next week. |
| sav | Thanks Fabio I trade the same way in the ER2 but in the US morning. |
| sav | Goodbye all. |
| fabio | Maybe we can exchange our methods, ciao |
Next EURO Chat with
Joe Ross:
Thursday, October 4, 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)
COME BACK WITH YOUR TRADING QUESTIONS & COMMENTS!
