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

Euro Chat with Joe Ross

Chat log from: Thursday, October 18, 2007

	JoeRoss joined.
	crosten joined.
crosten	hey Joe, were u here last week?
JoeRoss	Crosten: I told you on the chat that I would be in Europe. We sent an email telling everyone I would be in Europe and we announced it in Chart Scan.
JoeRoss	When I am in Europe I cannot do the chat.
crosten	Ok I guess I missed it.
JoeRoss	We always announce the chats in the weekly Chart Scan.
crosten	Joe, 2 weeks ago you said the euro is in profit taking mode, now it is making new highs, nice call.
crosten	Joe, do you have a target for the euro?
	nathan joined.
nathan	Hi and hello.
JoeRoss	My target is first 1.45 possibly by end of the year. Then 1.50 some time next year.
JoeRoss	Hi Nathan.
nathan	Is the bond market expecting the fed to cut interest rates.
JoeRoss	nathan: The bond market doesn't really know what to expect, so it jumps up and down with every report and announcement.
JoeRoss	The opinions are very mixed.
crosten	Joe do know of any trader who is of the same level as you?
nathan	Do you think they get the train and will raise interest rate in the near future?
	zendre joined.
JoeRoss	crosten: I don't know what level I am at, so how can I know where anyone else is?
zendre	Hi all.
JoeRoss	Hi zendre.
JoeRoss	nathan: Ultimately they will have to raise rates. But only when they are more worried about inflation than about recession.
crosten	Joe, did you add your euro position by using a traders trick on the daily charts ?
JoeRoss	Right now the FED is walking a very thin line and their only escape is to destroy the dollar.
zendre	Joe, I am reading your books. What is the correct forum to take any question?
crosten	Yes, Dennis Gartman said that Bernanke is telling everyone to sell dollar and buy gold.
JoeRoss	crosten: I add to my euro position every chance I get, so I am essentially euro-averaged.
nathan	That would be a fine solution for the state to get low debt.
crosten	Nice traders trick.
JoeRoss	zendre: You have to look the different forums and choose one where you think the question will fit. Otherwise ask by email.
zendre	Ok, thanks.
crosten	Joe, are you in any options play?
crosten	89 crude. New highs!
JoeRoss	nathan: Low dollar helps U.S. exports and creates jobs in that area. It helps tourism and creates jobs there, too. It let's U.S. pay off the debt with cheaper dollars. However, in the long run it is self-destructive. A nation's currency is representative of the worth of a nation. So when the U.S. cheapens the dollar it cheapens shares of itself.
JoeRoss	crosten: I am flat.
nathan	Will it have an effect who is going to be next president?
	murra joined.
murra	Hi Joe and all.
crosten	Joe, do you hedge your positions?
JoeRoss	nathan: No effect that I am aware of. Economics and politics are seen as two different things by the public. They see a lot about politics and know practically nothing about economics.
JoeRoss	Hi murra.
JoeRoss	crosten: I am hedged.
crosten	do you hedge by buying options?
JoeRoss	crosten: I do not buy options. I think it is foolish for most traders to buy options.
	Lola joined.
	RobCz joined.
crosten	What instruments do you use to hedge your position?
JoeRoss	crosten: I hedge in the currencies.
crosten	I mean with what instrument do you use to hedge your positions?
JoeRoss	I use futures wherever possible; currency CDs and also ETFs.
JoeRoss	Hi Rob.
RobCz	To All: Good evening.
JoeRoss	Hi Lola.
JoeRoss	Welcome to the chat.
RobCz	Hi Joe.
crosten	Joe, why didn't you open a hedge fund?
JoeRoss	crosten: I am not interested in managing anyone's money.
Lola	Hi everybody.
crosten	Joe, do you use Taylor's trading technique, of buy day, sell day and sell short day ?
JoeRoss	crosten: ????
crosten	Taylor's trading techniques, do you use them, there is a section of the book which he explains about the 3 day cycle of buy day, sell day and sell short day?
crosten	You read the book, right Joe?
murra	In your opinion, Joe, is right to read Taylor's book or because it is badly written it could cause confusion?
murra	Why you think it is the best one book on trading?
JoeRoss	crosten: I read the Taylor book many years ago. I don't remember the 3 day cycle and I doubt if it has any meaning in today's markets.
JoeRoss	murra: Unless you have a "fantastico" knowledge of the English language, you will be wasting your time with Taylor's book. It is a very confusing and horribly written book, and you have to read and re-read many times.
JoeRoss	murra: I don't think it is the best book on trading. It has something in it that meant a lot to me, but I reveal that something only at seminars.
zendre	Joe, I have not found any English language seminar from you. Are there any?
crosten	Then, what is the best book on trading, Joe?
zendre	E.g. In England?
JoeRoss	zendre: Do you live in the UK?
JoeRoss	crosten: It is a matter of opinion, but I like Trading is a Business.
zendre	No, But it is much closer to me than the US.
JoeRoss	zendre: Where do you live?
zendre	I live in Hungary.
zendre	Germany is close, but the translation to German makes the course slower.
JoeRoss	zendre: You can find the English language seminars on our website under "Online Seminars"
JoeRoss	There are 2 online seminars right now, my 1. The Law of Charts Online Video Seminar and my 2. Spread Trading Video Seminar. http://www.tradingeducators.com/webinars/index.htm There will be more coming soon.
crosten	Joe, suppose that someone is buying euro in the spot market, causing the euro to rally, but there is no one buying in the futures market, what causes the euro in the futures market to rise then?
zendre	I bought the "Law of Charts" seminar. It was great, and after that I bought almost all of your books.
zendre	My favorite book is Trading Optures and Futions.
JoeRoss	crosten: I cannot imagine such a situation. The futures and cash stay very close together. If spot cash rises, and not the futures arbitrageurs will come into the market to sell the cash and buy the futures and this will close the gap. Futures will rise to meet the cash.
zendre	I think arbitrage will do the job in the Euro futures.
JoeRoss	zendre: I am preparing an options seminar to go along with the book. I imagine it will be ready in early 2008.
crosten	Joe, do you use intuition to trade?
JoeRoss	crosten: Yes I use intuition to trade -- I do it quite a bit.
crosten	Ah! Spiritual trading.
zendre	Only one question to trading by the book: Do you think MACD with simple moving average 43,68,43 is still OK to find out the longer trend?
zendre	In today's volatile futures market?
crosten	Joe, (Mark?) Ritchie says that intuition is trumps.
JoeRoss	zendre: There is no one setting that fits all. You must adjust the settings to fit the market and time frame in which you are trading.
JoeRoss	crosten: What is trumps?
crosten	Joe, do you use other chart patterns besides ross hooks and 123? Can you give some example of this other chart pattern?
crosten	UTSE
JoeRoss	crosten: I used to use some classical chart analysis patterns until I discovered the Law of Charts. Now I use only TLOC.
zendre	What is UTSE?
crosten	Joe, what is the minimum number of ticks on tick charts you use?
JoeRoss	crosten: Yeah what is UTSE?
JoeRoss	crosten: I don't have a minimum number for tick charts.
crosten	What number of ticks do you usually start with when viewing a tick chart
JoeRoss	crosten: 500 ticks.
JoeRoss	Then adjust up or down until I see what I want to see.
crosten	Joe, would you have traded differently had you not read Taylor's book?
crosten	What do you want to see?
JoeRoss	crosten: Absolutely. Yes! I would have traded differently had I not read Taylor's book.
murra	Is it right to use the number of tick in accordance with the market's time frame and moment of entry? Or is better use a fixed number of ticks?
JoeRoss	crosten: A nice pattern, preferably well formed as defined by the Law of Charts is what I want to see..
JoeRoss	murra: I do not use fixed ticks. I adjust according to the market and time frame.
crosten	Is it because of Taylor's book you managed to find the different trading methods you have ?
murra	You told 500 tick?!
JoeRoss	crosten: It is not because of Taylor's book. His book has nothing to do with the methods I have.
JoeRoss	murra: 500 ticks is a starting point, not a fixed number.
murra	Ok.
JoeRoss	I start with 500 and then usually move up, but sometimes down in the number I use. Some markets I already know in advance approximately how many ticks to use. Some markets I have to experiment.
crosten	Joe, I am sure you have a couple of methods that you are not selling. What is the highest win ratio you manage to get out of your different method that you are not selling?
JoeRoss	crosten: We are selling the best ones we have. We don't think like others do. We don't hold back. Methods we don't sell are ones we are working on. Some we don't sell we give at the seminars, so that the attendees have something available only to them.
murra	Ok I have misunderstood before, but now it is clear. We must use a number of ticks in accordance with the way we want the chart to appear. Do you agree?
crosten	I am just curious what is the highest achievable win percentage that you have which you are not selling?
JoeRoss	murra: I agree.
crosten	I understand if you are not selling the most successful method, Joe.
crosten	I am just curious what is the highest achievable win percentage?
JoeRoss	crosten: I can't answer that because it is not yet known. We sell the best we have and do not hold back. Other methods we have are in a constant state of testing.
JoeRoss	crosten: You do not understand methods. Win percentage is not the measure of a method. What is important is how much money it makes. I would rather have a 50% method that makes 100 thousand euros than a 90% method that makes only 10 thousand euros.
crosten	Have you seen a method that has 90% win?
JoeRoss	crosten: We had (still have) a method that wins 96.5% of the time, but it doesn't make very much money.
zendre	You can create one, but maybe you will lose money with that :)
zendre	e.g.: Sell well out of the money options, and forget them.
crosten	Wow! It is achievable.
murra	Now I am short on ES at 1549. I have to take a profit at 1545, my second objective is 1540,25 and the third objective is 1535 (1 hour chart) take a look if you want and tell me please if this view is correct please?
JoeRoss	zendre: The 96.5% method is for the outright futures.
murra	Stop is at break even.
crosten	Playing a trading range, murra?
zendre	e.g. Sell Wheat options 2 USD above the current price every month. You will have success more than 90%. Of course not this year :)
JoeRoss	murra: There is not enough time right now for me to evaluate the ES chart. Send me a picture of the chart by email and I will look at it.
JoeRoss	It's time to go.
JoeRoss	I have a lot of work to do before the day is over. Some very tough emails to answer.
zendre	Joe and all, have a nice evening!
murra	Yes, but I go out of the market at the Close 22:15 about or before.
crosten	Share some of the tough emails, Joe.
JoeRoss	See you next week.
JoeRoss	Beginning with November 8 there will be no more chats that month until December 6.
murra	Hello Joe and thank you very much.
zendre	What a pity :-(
JoeRoss	I will be in Europe. If you live there come and visit with me.
zendre	Where?
JoeRoss	My schedule is posted on our website. I will be in Italy and Germany.
JoeRoss	Mostly in Germany. Here is the link to the live seminars: http://tradingeducators.com/seminars.htm
JoeRoss	Italy November 9-12.
murra	Good night everyone.
zendre	Any seminars without German or Italian translation?
JoeRoss	Germany November 15-17 Frankfurt Expo.
JoeRoss	November 23-29 Munich.
JoeRoss	zendre: If you want to come to a seminar you must let us know in advance and we will have it for you in English.
zendre	Wow!
JoeRoss	November 23-24 day trading CFDs.
JoeRoss	November 26-27 Day trading futures.
crosten	Do you have a method for CFDs, Joe?
JoeRoss	November 28-29 spread trading.
JoeRoss	For hotel locations visit our Italian and German websites.
JoeRoss	Or send me an email.
JoeRoss	crosten: Yes. There is a 2-day CFD seminar.
crosten	What is the % win?
JoeRoss	murra: The day trading seminar is 2 days, 26 and 27 of November.
JoeRoss	crosten: It is a seminar, not a method.
JoeRoss	Good night everyone.
zendre	Good night

Next EURO Chat with Joe Ross:
Thursday, October 25, 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)

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