Euro Chat with Joe Ross
Chat log from: Wednesday, January 30, 2008
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| JoeRoss | Hi everyone. In 15 minutes we will find out what the FED is going to do. GDP came in weak, so I wouldn't be surprised to see a 50 basis point cut in interest rates. |
| YV | Hi joe |
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| kenle | Evening Joe, all |
| JoeRoss | Hi to all! |
| YV | In some of your writing u express trading at least 2-3 contracts for a position. What would u recommend for a guy with small account of 5k. Should i wait and pile more money before i trade? |
| JoeRoss |
YV: I think you should wait. $5,000 was okay back in 1980, but not anymore. You could do spreads which require less margin. Or options which have low margins. That's one way to begin with $5,000. But don't think that day trading is what you should do with a $5,000 account. That is a fallacy. It might seem that because of lower day trading margins you can day trade with a small account, but the truth is that you because of the lower margins, you will simply lose money faster because you will be presented with more opportunities. |
| kenle | Joe what is a good size for starting with the easy bond. |
| YV | So what do u consider will be a good starting point in terms of cash? |
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| JoeRoss |
kenle: You can do it with $10,000, but if you decide to trade it, please go to our Easy bond forum to see that we have made some modifications. If you own Easy Bonds, you will be given access to that forum. The method is working well with some modifications. |
| marco | Hi there |
| JoeRoss |
YV: It is going to depend on what you want to trade. $100.000 would be a nice round figure and you could trade that with ease, But most people don't have that much to start. $10,000 will enable you to get started. |
| JoeRoss | If you begin with less than $10.000 you must be very, very careful and choose your trades very wisely. |
| YV | I see thanks. |
| kenle | Ok, thanks Joe. Yes i bought easy bond about a month ago, but am new to futures and some complications stopped me from getting started until now. |
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| nathan | Joe, you wrote that there could be a rising stock market short term. does that mean the dollar declining now further if rates are cut fast? |
| crosten | Joe are you going to trade when the FED announce the rate? |
| JoeRoss | We received modifications from 2 traders and both of them are working well. |
| crosten | 10 min until the announcement. |
| kenle | Yes i got yr email re: mods. thanks Joe. |
| YV | Easy Bond works very good with modifications as long as u are not greedy. |
| JoeRoss | nathan: I believe the dollar will decline more if they cut rates. |
| kenle | YV do you use Easy bond? |
| YV | I traded it for 2 months already. |
| kenle | Are you an experienced trader? |
| kenle | I'm totally new to futures. |
| YV | No, not experienced. |
| JoeRoss | crosten: I won't trade because I will be in the chat, but even if I were not in the chat, I still wouldn't trade then. |
| kenle | Joe, do you have any comment on the rate cut? |
| JoeRoss | kenle: There is a new one I posted in the forum yesterday. |
| kenle | Ok i will read. |
| JoeRoss | kenle: I expect at least 50 basis points. |
| kenle | Ok Joe. |
| JoeRoss | I guess we will know in about 4 minutes. I think that is when they will make the announcement. |
| nathan | That means you could have sold Put options? |
| JoeRoss | I am short a bunch of euro Put options. |
| JoeRoss | I hope they will become virtually worthless in 2 minutes :-) |
| JoeRoss | Also, maybe gold will shoot up. Certainly, people will begin buying dividend paying value stocks. |
| JoeRoss | They only got 1/2 of what was expected for the GDP report. |
| JoeRoss | That is a sign of weakness. |
| marco | nice ;-) |
| marco | I don't know what they did but I got my limit orders filled ;-) |
| JoeRoss | euro is shooting up. |
| JoeRoss | GE also shot up, a dividend paying value company. |
| JoeRoss | e-mini hasn't reacted yet. |
| JoeRoss | Has anyone heard the amount of the cut yet? |
| YV | 50 bps. |
| JoeRoss | YV: Where did you find that? |
| YV | DTI. |
| JoeRoss | Is there a Link? |
| YV | No, its via my broker. |
| JoeRoss | Oh! Usually crosten is the first to know. Crosten are you there? |
| JoeRoss | General Electric (GE) is going absolutely wild. |
| YV | emini already 20 points up. |
| marco | Gold also moved now. |
| YV | S&P. |
| JoeRoss | I think my e-mini SP died. It hasn't moved at all. |
| marco | It did move Joe ;-) |
| YV | 1360 to 1377 |
| YV | Retracing now. |
| marco | It's trading at 1374. |
| JoeRoss | I see it now. I had the wrong symbol. |
| JoeRoss | It is moving |
| marco | Looks like gold will take out yesterdays high... |
| JoeRoss | euro is 1.485 |
| JoeRoss | I hope so, I'm long gold. |
| marco | I hope so, too. |
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| JoeRoss | I can't believe what I'm seeing in GE. It hardly ever moves and for the last 5 minutes it is hopping up and down and going higher and higher. |
| JoeRoss | Hi raetia. |
| raetia2 | Hi Joe |
| JoeRoss | Oil is up too. |
| YV | Oil is approaching the congestion area before yesterday's high. |
| JoeRoss | It's an exciting day if you are on the right side of the market today. |
| YV | Second time through. i wish i could trade that, but its too fast for me. |
| nathan | Why is ZB falling? |
| JoeRoss |
nathan: Very often ZB will have an adverse reaction to a FED announcement. But later today or possibly tomorrow it tends to reverse itself. |
| JoeRoss | I think it is because ZB already had a cut priced in. |
| YV | Probably the Easy Bond worked great today. |
| JoeRoss | So now they are selling off to take profits. |
| nathan | Now there is some kind of reversal. |
| nathan | Or did they just run stops to come in cheaper? |
| JoeRoss | Rates set by the FED do not have a huge affect on the bonds. The bond market sets the rates on the 30 year bond. |
| JoeRoss |
nathan: Ahead of an announcement, the bond traders take a position. They were quite sure that the FED would have to cut rates. So they took the market up. Now once the announcement is there, they take profits which drives the market down. Later they can buy back in cheaply, and take the market up again. |
| nathan | I also watched the market heading up then very early next day, so it would be quite good chance to still go long? |
| nathan | Objective 10 pts? |
| JoeRoss | Nathan: I think there is a good chance. The bonds reacted as they did today on the previous 3 rate cuts. It took a lot of people out of the market and then bonds went higher. |
| nathan | Don´t you think gold gets rougher soon? |
| JoeRoss | nathan: I have never known gold to not be rough. I'm sure there will be a huge correction one of these days. I am keeping a tight trailing stop. |
| nathan | That's what i thought. |
| crosten | Hey joe did u read about the trade from Soc. Gen .who lost billions ? |
| JoeRoss | crosten: Yes I did. How much did you lose today? ;-) |
| crosten | That trader should sit down and read your spiritual side of trading lol |
| crosten | LOL |
| crosten | And the best thing about the spiritual side of trading is that it's free. |
| JoeRoss | I'm sure you lost today, Crosten, because you were being too quiet. ;-) |
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| JoeRoss | I'm just pulling your leg, crosten. LOL. |
| crosten | i am doing some quick scalping got only a couple of points. |
| JoeRoss | You were scalping the report :-D |
| nathan | If euro is rising steady more of the U.S. will be owned by everyone except the citizens of the U.S. ::blush |
| JoeRoss | nathan: That is true. We are being owned by the Arabs and the Chinese. |
| nathan | That will head to nice HOT DOGS. |
| crosten | Yes bought the euro on the pull back after the huge spike, managed to get 10 point, if i were still in the trade now i would have managed to get 50 pt. |
| nathan | ::laugh |
| crosten | I am happy with 10. |
| JoeRoss | Maybe our hot dogs will be made of rice. |
| JoeRoss | Good for you, crosten. Greed doesn't pay. |
| crosten | I am still alive by not being greedy. |
| nathan | Maybe the Chinese will buy some water companies to save their interests. |
| crosten | Joe did you buy the CAD , there was a Traders Trick this Monday. |
| JoeRoss | crosten: No, I didn't put on any trades today. There is something wrong with my trading platform and I'm not getting any prices. |
| JoeRoss | They gave me a fix, but it didn't work. |
| crosten | I mean the Canadian Dollar it made a Traders Trick on Monday; nice trend. |
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| JoeRoss | When the chat is over, i will talk to them again. I haven't had prices on that platform for 2 days. |
| zendre | Hi all. |
| JoeRoss | Hi zendre, you're just in time for the end of the chat :D |
| nathan | I need to leave. Thanks for your time. bye see you. |
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| zendre | That is my luck. |
| JoeRoss | cu nathan |
| zendre | :-) |
| JoeRoss | Gold just made a new high. |
| kenle | Hi guys got d/c |
| JoeRoss | euro still climbing. |
| zendre | What do you think about the mid-term of GOLD? |
| kenle | YV did you say you traded easy bond these past days? |
| crosten | Hey joe it looks like 1.5 is for certain now for the euro.. |
| crosten | Maybe tomorrow's euro session. |
| JoeRoss | zendre: UP, but maybe DOWN :-) |
| JoeRoss | crosten: I think 1.5 is for sure. |
| YV | Yes. |
| YV | Not today though. |
| JoeRoss | The U.S. will cut again, next month. You are going to see interest rates go to 2%. |
| crosten | joe do you know about this joke that the U.S. economic stimulus is actually helping the Chinese economy, Bill Gross. |
| crosten | LOL. |
| JoeRoss | crosten: I don't think it's a joke, I think it is true. |
| zendre | While China lives on US exports. |
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| JoeRoss | The public is being stimulated to keep buying more electronic toys from the Chinese. |
| crosten | Haha that Bill Gross is sure a good joker. |
| YV | Joe what would u consider a realistic timeframe to trade for 10k account? |
| BenHH79 | Hi Joe! I've got just one question: Where may we expect the gold price at the end of the year? |
| JoeRoss | YV: It's a long story, but I don't think time frame has very much to do with the size of your trading account. |
| YV | Ok. |
| JoeRoss | I know a guy who trades off the weekly chart and risks only $200. He is a very good trader. |
| crosten | The price of gold will be higher than it is today. |
| JoeRoss |
Ben: I wish I knew. My guess would be at least $1,000. In order for gold to be at the same price it was when it was at $850 when it made the high that lasted over 20 years, gold would have to be priced at $2,000 an ounce. |
| JoeRoss | Time's up folks. |
| JoeRoss | I have a lot to do, and another chat tonight.. |
| crosten | Yes adjusted for inflation about 2400. |
| JoeRoss | See you next week. |
| JoeRoss | Have much success with your trading. |
| BenHH79 | ok...good evening joe!! |
| zendre | How come to risk as little? Sos he plays 1 month difference, Calendar spreads? |
| JoeRoss | Bye |
| JoeRoss | No Spreads, Just outrights. |
| JoeRoss | Ciao, Saluti, Servus, Adieu, etc. |
Next EURO Chat with
Joe Ross:
Wednesday, February 6, 2008
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)
COME BACK WITH YOUR TRADING QUESTIONS & COMMENTS!
Do you know how and why prices move?
