Euro Chat with Joe Ross

Chat log from: Wednesday, March 12, 2008
SusanV joined.
TradeCraze joined.
fabio.it joined.
fabio.it Hi susan... are u ok? Hi tradecraze...
fabio.it Does the chat begin in 10 min or 1H and 10 min?
crosten joined.
GregV joined.
SusanV Hi Fabio. Yes, I am ok.
SusanV I'm going to be a mommy in October ;)
SusanV The chat begins in 7 minutes.
fabio.it woooww... compliments.
GregV Hi all.
GregV Compliments.
fabio.it Hi greg.
fabio.it You have finished to live well ;o)))
fabio.it susan--- prepare yourself to long night without sleeping (for a while...)
SusanV maybe Joe can do 2 hours today. What time is it now for Central Europeans? Did you already switch to Daylight Saving Time?
fabio.it But they will be unforgettable (in both sense)
fabio.it It is 6.56 pm
JoeRoss joined.
SusanV I thought so, that means that some traders might join the chat in an hour instead of now. But Joe will be here.
SusanV Just stay, and we'll see if we have to make the chat longer and add another hour.
crosten Hi joe
JoeRoss Hi
fabio.it Hi
GregV Hi Joe
crosten Joe, can u see my text.
JoeRoss I was out in my garden planting lettuce :-)
JoeRoss I see you, crosten.
SusanV Joe, you had a private student here the last couple of days, it seemed you guys had a great time.
crosten Joe, are u still long euro?
crosten i guess u are still smiling now if u are long.
JoeRoss I usually have a great time with my students. They are happy to be learning and I am happy to teach them. Sometimes when there is extra time, I am able to show them the area.
JoeRoss crosten: I am still long euro. I'm up quite a lot.
crosten Ho ho 1.60 Joe?
crosten



Joe, do you find that yesterday's move on the dollar kinda funny cause the helicopter is printing money hence debasing the currency but yet the dollar rally yesterday?
JoeRoss Yes, I think 1.60 is very possible.
JoeRoss It won't rally for long, crosten.
JoeRoss In fact I think the rally is already over.
fabio.it When you trade spreads, where do you place the stop? Under the previous low? Or do you use a volatility stop or something else?
SusanV Hey Fabio, Greg and TradeCraze, what happened with you?
crosten Joe, would you consider yesterday's move a spike reversal?
fabio.it i'm finishing working ;o)
fabio.it Now i have finished.
GregV I'm still here and wondering about your lettuces Joe!
JoeRoss fabio: I use a calculated stop.
crosten Any options play Joe?
JoeRoss crosten: A spike reversal in which market?
crosten Yesterday, the euro?
fabio.it For example 1/2 the margin?
JoeRoss Which time frame, crosten?
crosten Daily.
JoeRoss I'm thinking about 1700 ES Puts to enter on Friday.
SusanV I think TradeCraze must haven fallen asleep.
JoeRoss Fabio: I always begin with 1/2 the margin and then adjust as needed. Once I reach my first objective, I trail my stop at support or resistance.
JoeRoss crosten: yesterday looked like a spike reversal. No short was possible today. Now euro is 1.5517.
fabio.it Two days ago i didn't enter a spread because i didn't know the time was changed in U.S. So i don't know if enter today, because the price has soared... :o(
crosten Joe, if your look at soybean on the daily chart am i correct to say that the up trend is over?
JoeRoss fabio: which market?
fabio.it ZSX08-ZSK08
JoeRoss GregV: I'm planting Black Simpson.
JoeRoss Leaf lettuce.
fabio.it And ZMK08-ZLK08, but in this one I have some doubt... if soy oil start again I think it go faster than soy meal.
JoeRoss Fabio: It's not too late for that spread. I think it will go much higher.
GregV I will look out for them.
JoeRoss fabio: Soy oil has substitutes like palm oil, canola oil, and coconut oil etc. But there is no substitute for soy meal.
fabio.it Thanks Joe, tomorrow i will enter... today remain 1 minute... no more time.
crosten Joe am i correct to say that the uptrend on soybean is over?
JoeRoss crosten: The trend line on the daily chart is broken, but not on the weekly chart.
fabio.it Another spread i have under monitoring is GCG08-SIK08... i know you don't like NY markets, but what do you think bout it?
JoeRoss Until it is known the quantity of soybeans being planted, there is still a shortage.
JoeRoss fabio: GCG08 is not trading any more. You have to use GCJ08
Hrasa joined.
GregV Any word on an entry for lettuce Joe?
fabio.it Yes i know sorry.... my fault in digiting
JoeRoss I'm long lettuce, Greg.
Hrasa Hi all!!
GregV Thx Joe.
crosten Joe, are u using still long gold using volatility stop loss?
JoeRoss Hi Hrasa
fabio.it how many contracts of lettuce ;O)))))
GregV Hi Hrasa
fabio.it Hi hrasa
JoeRoss crosten: You asked me that last week. I am not in any gold trades lately.
JoeRoss 1 meter long of lettuce now, and then in 2 weeks I plant another meter.
JoeRoss I keep doing that until it gets too hot for lettuce.
JoeRoss I like lettuce, it reminds me of money ;-)
GregV *smiling*
GregV lol
GregV Crisp and green.
fabio.it What a fantasy!!!
JoeRoss Entry for lettuce depends on where you live. In the North you enter the trade late :-D
GregV So compound in 2 weeks.
GregV hmm
GregV and a 3rd/
GregV ?
GregV meter
JoeRoss 2 weeks after that.
GregV ahhh
Hrasa COMPOUND
JoeRoss I have a pretty big garden and I enter my lettuce trade next to the fence so it stays cool in the shade :-)
SusanV Joe. so are we going to have a lettuce party at Trading Educators soon?
JoeRoss Once it gets hot, I have to wait for October to enter again, so it is a seasonal trade.
Hrasa Sorry I can take this word to vocabulary.
Hrasa :-D
fabio.it



If i would trade in long term, which time frame do you suggest? (i would daytrading for living, and make some long term trades for pile some money that i don't need for living)
JoeRoss susan: You can make the dressing.
crosten Joe, do you see a dollar crisis emerging?
JoeRoss fabio, are you talking about lettuce or something else?
JoeRoss In Italy you should already be long lettuce.
GregV What of the dollar crisis Joe?
fabio.it Everything makes money....
GregV It deserves a word.
fabio.it No i was serious.
GregV Can't say it's more important than lettuce.
SusanV Joe, is there anything to say about your trip to Brazil next week?
GregV But pretty important!
SusanV You are going there to give trading seminars...
crosten Joe, do you see a dollar crisis emerging?
JoeRoss The dollar is the other kind of lettuce. In the U.S. we call the dollar by that name. The dollar crisis has no short-term solution.
JoeRoss The dollar will continue down until maybe some governments intervene, and start to buy dollars. it could happen.
JoeRoss We have a full house for the Brazil seminar and are already taking reservations for October. The room holds only 120 people.
crosten 110 oil
SusanV WOW, that's great.
JoeRoss We will be teaching them day trading and the 5 setups we like to use for our own trading.
SusanV A lot of people want to learn from the Best.
SusanV Well, that will be a success.
JoeRoss crosten: The dollar crisis is already upon us.
fabio.it If one wants to daytrade only one or two hours a day, maybe the 5 min and 15 min are the best time frame? Trading the RH?
crosten Hey Joe is there really no more oil in the ground?
JoeRoss Susan: The best success is if I win while I am trading live in front of them.
JoeRoss fabio: Not necessarily. I still use 30 and 60 minute charts to trade the first 1.5 hours in the morning.
fabio.it If not you tell them the ADSL is not running
SusanV I'd like to buy ice cream now. Does anybody have ice cream to sell?
JoeRoss crosten: There is lots of oil in the ground.
JoeRoss LOL
JoeRoss Susan: I want some ice cream too.
crosten Joe, do you believe that the volatility in the commodities market is due to the ETFs and the funds?
JoeRoss crosten: Yes I believe some of it is due to the ETFs and the funds, but most of it is based on real shortages.
SusanV Ok Joe, maybe Loretta has some ice cream?
JoeRoss Susan: Not a chance!
crosten Joe if there is an intervention on the euro, will it be done secretly or will they tell people they are going to intervene?
fabio.it Take a plane and come here, i'll be happy to offer the ice cream to all of you.
SusanV ohhhhhhhhhhhhhhhhh
SusanV Fabio, but only the best Italian ice cream you have
fabio.it Instead Joe pay himself.... i already paid him ahahahaha
JoeRoss crosten: If you read what Trichet said the other day, there is not much hope for a rate cut from the ECB.
fabio.it i can't see no more your writings....
JoeRoss So far it seems the world is not dissatisfied with a falling dollar.
JoeRoss In fact, against the yen, it is not even undervalued.
crosten What do you mean by that Joe?
crosten Dissatisfied, are you saying the world is happy with a weak dollar?
JoeRoss crosten: So far it seems that way. Since oil is priced in dollars it is becoming very inexpensive in Europe.
spreadtrader joined.
crosten I guess trichet is smiling with the strong euro.
fabio.it Ask to my car.....
crosten lol
JoeRoss The price of oil in other currencies is becoming relatively less.
JoeRoss The strong euro and worries of inflation keep Trichet from lowering rates.
fabio.it Bye all i have to go.... if the chat will be 2 hours, see you later.
crosten Joe, do you belief the fed is gonna cut 75 or 50 tomorrow?
JoeRoss See you fabio.
JoeRoss crosten: I think they will cut 50 or 75, but probably on the 18th, not tomorrow.
JoeRoss I need a 5 minute break. I'll be right back.
JoeRoss I'm back.
JoeRoss I sent out for some ice cream. I want to be long ice cream..
GregV Hey Joe.
JoeRoss I think you are all taking a nap zzzzzzzzzzzzzzzzzzzzzzzzzz.
crosten Joe what do you think abt the Spitzer news, kinda funny?
crosten lol
GregV I'm very much awake Joe.
GregV lol
crosten The market dropped a little when news broke that he resigning.
JoeRoss


As it turns out he is not so perfect. He should resign. He has put people in prison for doing what he did.
GregV lol
JoeRoss I haven't seen the news. Is he going to resign?
GregV I hate laughing at the misfortune of others.
GregV But.....
crosten 1000 an hour he is rich.
crosten Yes he resigned.
GregV I agree I hate Hypocrites.
JoeRoss maybe now they will prosecute him for aiding and abetting prostitution.
GregV And send him away where he can be bent over.
GregV ay ay
GregV and away
GregV ... So as was said we all have our own personal hells.
GregV And they are always of our own making.
JoeRoss They would send him to one of those places where they send the rich guys. It's kind of a gentleman's prison.
JoeRoss Other than not having freedom, they have everything else, including ice cream and fresh lettuce.
crosten lol
JoeRoss I guess you can tell what I have on my mind.
GregV But u can't plant it yourself Joe.
Lola joined.
JoeRoss Here's Lola.
crosten How long will it take a lettuce to grow?
GregV And when u are such a tight %%%. everyone knows.
JoeRoss crosten 3-4 weeks.
GregV They know they know.
crosten That's fast.
Lola Hello everybody.
GregV Ho lola.
JoeRoss crosten, some you can eat in 2 weeks when you thin out the plants. You then leave the rest to grow bigger.
GregV Hi.
JoeRoss Lola, you need to choose a picture.
JoeRoss Click on Action and then My Avatar.
GregV I'm envious Joe, I picked out some Velsalad tonight, Wild, but still in a packet.
JoeRoss Greg: I love the field salad you have in Europe. We don't seem to have it here.
JoeRoss I think it must be Riccola.
Lola How about that avatar.
JoeRoss Lola: Ugh!
Lola Better?
JoeRoss Much better, Lola.
JoeRoss crosten: Where is your Avatar?
nathan joined.
crosten Don't have one i cant even see everyone avatar i just see text.
GregV I also love it. Im not from Europe but I've been living in Berlin for the last 18 months and I love the Veldsalad.
JoeRoss Hi nathan:
JoeRoss Your right on time but you are an hour late :-)
crosten lol
nathan Aha!
JoeRoss U.S. is on daylight saving time. I guess you change next week???
nathan No later, its nearly at the end of March
JoeRoss Greg: good Avatar
nathan i was stunned on monday, but now i forgot it also.
GregV A little grey for me but there was no other fit.
JoeRoss Speaking of stunned, yesterday's price action sure stunned a lot of people.
nathan IB doesn't send any notice.
nathan of changing time
crosten Which market are u talking about Joe? That stunned a lot of people?
JoeRoss IB doesn't offer much service of any kind.
nathan Actually the trading didn´t let me have time to be stunned, what do think about?
JoeRoss crosten: Stocks, bonds, notes, currencies.
nathan I actually don´t use news in trading what happened fundamentally?
JoeRoss nathan: I'm glad I was busy with tutoring a student. I didn't have time to trade or even look until it was all over.
nathan Between trading its also just doing what we are seeing.
JoeRoss But I couldn't help thinking about what if the FED would have done that last week while I was still short 70 Swiss Franc Puts
nathan Joe: You need more lobbyistic work in the direction of the FED.
nathan Perhaps a personal pressure maker.
GregV *smiling*
nathan You told that you seldom traded DAX, why?
nathan Why didn't you like it?
JoeRoss nathan. DAX is bad hours for me. Not convenient. Also I'm not too thrilled with $10 tick in such a volatile market.
nathan There is also slippage.
fabio.it Hi everybody i'm back.
JoeRoss Hi fabio.
GregV Clean, but very fast.
zendre joined.
JoeRoss Hi zendre.
JoeRoss We held the chat an extra hour just for you.
zendre Hi, again the DST!
zendre Just started?
nathan What about you Italians, do you trade Italy stocks or futures?
JoeRoss zendre: It started an hour and 13 minutes ago.
zendre :-(
zendre I must take a look at the logs tomorrow :-)
fabio.it nathan: no i no more trade Italian stocks or futures... in Europe i trade only the DAX futures.... daytrading.
crosten Joe, what is the max number of market your are able to day trade at 1 time?
JoeRoss zendre: We are having a double chat this week, there is no chat on March 26. I will be in Brazil giving a seminar.
zendre That is great. Won't you get tired of us?
nathan fabio: What do you like at the DAX futures?
quester123 joined.
nathan Joe: Do the students in Brazil ask different questions than in Europe, do they trade another style?
JoeRoss Yes, different questions and different style. They trade only Brazilian stocks.
JoeRoss crosten: Stocks 50 positions. Futures day trading 1. Futures options 3. Spreads 4 positions..
JoeRoss zendre: I will get tired, but not of you.
crosten Hey Joe, who are the people buying the euro at this level?
JoeRoss The ice cream has arrived.
nathan fabio: some people already told me they like DAX, why do you like?
crosten higher and higher as we speak.
GregV We all scream for ice cream.
JoeRoss crosten: I don't know, They are keeping that from me.
crosten Does the price of milk increase over the past couple of months in your area Joe?
nathan Joe: do you think ZG is day tradable, how?
zendre What markets did you analyze up till now?
fabio.it Nathan, i tried to trade the DAX in many time frames. Now i'm using 5 min and 15 min charts.
JoeRoss mmmmm. Chocolate-Cherry.
zendre Joe, What do you think about tick charts? Is it better for daytrading then time charts?
GregV Now that's something for Joe, driving an ice cream truck!
nathan fabio: i found out that if the objective is few the slippage is killing the profit. Do you need a bigger objective?
JoeRoss crosten: Milk prices have increased.
JoeRoss nathan: ZG is day tradable. I use 30-60 minutes.
fabio.it Usually 8-12 point on 5 min chart, something more on 15 min, but most important you have to test it
nathan Joe: Do you get enough momentum?
nathan fabio: do you get slippage?
JoeRoss zendre: I like tick charts very much when i want to create a trending chart.
zendre And when do you like, and in what cases you do not like creating a trending chart?
GregV can u explain that concept a little Joe. With the ticks and trend.
fabio.it nathan, i don't get slippage on entry because i enter "limit", while i can get it on exit because i exit "stop" if i lose (not if i win because i exit "limit")
JoeRoss Nathan, usually in gold there is enough momentum.
nathan fabio: aha, entering by stop needs a good strategy at DAX.
GregV After the ice cream.
nathan At er2 there´s also enough slippage but the momentum is great
JoeRoss zendre: I have no pattern for using tick charts. I am always looking for opportunities and if I don't find any on time charts I start looking at tick charts.
fabio.it nathan... yes, sometime i'm gapped up on entry, in the case simply i don't enter
nathan fabio: did you try eurostoxx, there i actually don´t get any slippage.
zendre Joe, Why not start looking it on tick charts first?
JoeRoss Greg: Often Tick charts do not have as much momentum as time charts. You can make a trend appear where there isn't one, but it can never trend beyond the range of the time chart.
fabio.it Joe, i got disconnected before for a minute, maybe i lost your answer to my question.
JoeRoss zendre: Sometimes I do look at them first. As I said, I have no pattern for the way I use them.
JoeRoss fabio: what was question?
nathan The chocolate-cherry cream eats the question before the cream is eaten by Joe ::laugh
JoeRoss I can't believe I ate the whole thing!!
fabio.it The question was: how you can find patterns daytrading 1.5 hours a day with hourly bars.... maybe do you trade 4 or 5 markets? or don't trade everyday but only when a signal appears?
zendre Joe, could you please explain: It can never trend beyond the "range" of the time chart.
zendre What do you mean by " range"
JoeRoss fabio: I just trade what I see. I look for the breakout of the previous days high or low, and I look at the overall patterns from what happened before.
JoeRoss fabio: I only trade when the trade has my name on it.
JoeRoss It has to say: "This is Joe's trade."
fabio.it :o) as always
JoeRoss zendre: Range is the distance between the high and low of the prices that are not trending.
zendre Joe, I do have the opinion, that every trader must daytrade to be successful position trader. Do you agree with this theory?
fabio.it Do you not like shorter time frames? For the noise?
JoeRoss zendre: With some experimenting you can make most trading ranges trend, but they cannot trend beyond the limits of the trading range.
nathan Joe: do you find enough momentum for ZG trading?
JoeRoss zendre:: I don't agree. I position traded for 22 years before day trading came into existence.
zendre I see so if there is not trend in the time chart, then we can go for "trends" within the congestion of the day. (now I am more confused than I was before this sentence)
SusanV GregV, are u the U.S. President? your pictures looks somewhat like it but he wouldn't take the time to join Joe's chat
JoeRoss fabiio: More and more the shorter time frames are full of noise. I hate the noise.
JoeRoss nathan: I usually find enough momentum for ZG trading.
JoeRoss But not always.
SusanV Joe, what kind of traits does a wanna-be trader have who will never make it in the markets in your opinion?
SusanV Can u tell up front, if somebody will be successful or not?
zendre I think nowadays not only the hooks' tips are "run" but the last day's low-high as well. Making a TTE less profitable, or even a false entry
fabio.it Joe, why do you hate to follow the crowd (grains at the moment)? don't you find any opportunity in those markets?
JoeRoss Susan: Fearful, Greedy, Selish, Proud, Nervous, Impatient, to name a few.
zendre Oh that is me :-)
SusanV So if a trader has any of those traits, how can he learn to overcome them?
SusanV Other than learn the right mind set and get the right tools through your teachings, Joe
JoeRoss zendre: They have always run either the high or low of the previous day, sometimes both. This is nothing new.
JoeRoss Susan: He can come and lay down on my private tutoring couch. :-)
JoeRoss Susan: I learned to overcome bad traits by studying the Bible.
zendre Very frequently this tricks my TTE into a wrong entry.
JoeRoss zendre: I don't see how running the previous days high or low can affect the TTE.
zendre I started to write a trade log 1 month ago. I started loosing money :-)
JoeRoss zendre: Writing a trade log shouldn't cause you to lose.
zendre Up till then I was winning, but not happy because I did not know why.
Now I am loosing, and am "happy" to know why :-)
JoeRoss :-D
SusanV That's weird.
zendre However the best trade was to sell the the GBP 1.97 PUT following you. I was cashing it when it lost half of its value. It turned out to be a local high, so I was lucky :-)
fabio.it susan, i tell how i handled fear... it is enough stay in front of the screen and see pass the trade you have previously planned (and not entered).... after that i decided "no more fear"... and i begin to enter.... and losing
SusanV Fabio, now what?
SusanV Now you have to find a way to say "no more fear" and start making money.
JoeRoss zendre: The BP Put ended up worthless. I don't recall that it was ever challenged.
nathan Susan: Do you trade also?
fabio.it i'm little joking.... now i win and lose... i'm substantially in pair.
SusanV Not at this time, just investing.
nathan In shoes????
JoeRoss Susan made a great trade, she traded being single for being married to a great guy.
fabio.it But i'm a better trader now, thanks to Joe, and i feel i will get far better.
SusanV No, i have plenty of shoes ;-)
crosten Does susan trade independently with your help Joe?
zendre


The most frequent cause to lose money was that I did not cashed the first contract quick enough, and did not pulled the stop to even. I suppose this is most traders' biggest problem.
JoeRoss crosten: Susan is very independent.
nathan zendre: actually that's why I were losing, because of to break even to soon.
nathan Then I changed into good.
JoeRoss zendre: I know a trader who makes all his money between the TTE and the #2 point or the TTE and the Rh. He takes the money and runs away.
fabio.it zendre... you are right... in fact now i'm studying to find the best balance.
fabio.it I'm tired to trade at break even.
SusanV But Greg doesn't know my husband Bill.
nathan Are you married to Bill Cosby?
JoeRoss No and it isn't Bill Clinton either
JoeRoss Her husband is Bill V.
zendre Joe I looked up some statistics about Cedar Park. How come that the population doubled between 2000 and now? What was the problem before, or what has improved since 2000?
nathan Is the bill very high?
SusanV Cedar Park is one of the fastest growing communities around Austin, Texas. Lots of business have started and people move here from other states, like California etc.
SusanV That's what i found out coz it does get crowded here.
SusanV And rent gets more expensive.
JoeRoss zendre: Cedar Park is booming. It is just Austin overflowing into Cedar Park but also many people come from other states because this area is very nice.
fabio.it I have seen Cedar Park on google earth... so if i will come for private tutoring i know the way
JoeRoss It's almost time to go. I will take a nap and then go to work in my garden.
SusanV It's almost over already. Maybe some of you have time tonight to join our U.S. chat.
zendre Sure. What time it will be in central Europe?
JoeRoss 2am
nathan I will chat in my bed then.
zendre I am confused because of the DST changing difference.
zendre Nice.
JoeRoss I will be here next week, but not on the 26th. By then we will have the time right again.
GregV Thanks everyone, thanks Joe.
JoeRoss See you next week at 1PM U.S. time and 7PM European time.
JoeRoss Bye all.
JoeRoss Have a great week.
nathan thanks good bye to you
fabio.it bye all
nathan and flowers to susan
SusanV thanks Nathan
nathan bye fabio
SusanV I will be a mommy in October :)
fabio.it bye nathan
SusanV Bill and I will have a baby :-)
SusanV Have y'all a good evening and a great rest of the week.
zendre Great!
zendre Bye all
SusanV bye bye

Next EURO Chat with Joe Ross:
Wednesday, March 19
, 2008
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)

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