Chat Archives
Commodity Chat With Trader Jim! (tm) with Jim Prince
from 04/08/2008
Hello and good evening! Trader Jim here. . . First of all I want to thank for joining me this evening! After a crazy and volatile month of March, things of been a bit more quiet to begin the month of April. Anyway, we still have a lot to chat about this evening. Rough Rice has powered to new all-time highs! And just when it looks as though Crude Oil can't go any higher -- it does! The Euro FX also recently made a new all-time high, and the stock indices continue to trade all over the place. All of these markets and sectors have, at one time or another, been featured in our nightly Premium Alert Service™ (PAS) videos. If you've had a successful paper trade or real money trade in any of these markets (or others), Feel free to share your trade details with fellow Course Members. Discussing your market experiences lets others know they are not alone in this business. So please feel free to share your excitement, enthusiasm, and dedication. It supplies others hope and optimism of what's to come. New Features We recently added two new features to US Charts Online, my blog and the heat map. We'll be announcing another new feature within the next week or two, so be sure to keep an eye on your email for more information. I'd like send a shout out to Ken Roberts and also add my thanks! Ken started introducing folks to the Greatest Business on Earth™ over 20 years ago. I was fortunate enough to not only be a student of Ken's, but I also had the great pleasure to work for him for 12+ years. I'm happy to be able to share with you what I've learned over the years. As we begin this evening's session, remember the reason these monthly chats are conducted is to provide you the opportunity to ask questions and to pick the brain of a 20+ year student of the markets. It's not the best use of our limited time here together for me to define basic terms and explain introductory principles taught in your Course materials. (That's what our Course Counselors are here for. They can be reached at 541-955-2885) This chat is the time for you to use me to help you apply the basics you're learning and to prepare you for what to expect once you're out in the market itself (either paper trading or with real money). And if we have some fun and laughter along those lines, so much the better. NOTE!!! When commenting on one of the GBE strategies or US Charts, please identify WHICH STRATEGY AND/OR MARKET. Also, when relating trading experiences and/or results, please provide details: Futures contracts, options, option strike prices, options AND futures, real money or paper trading, etc. This helps others follow along and learn from your experience too.
Neel R asks (5:53:37 PM):
Hi Jim! Thanks for all you and your staff do. I just pulled out a cool $1,000.00 on a long feeder cattle in 2 days thanks to the charting service. Are options the best way to handle volitile markets? Trading oil and gold for example is easy to get stopped out of unless you give a lot of slack!
Nice job, Neel R! Congrats on the trade. I think options are a great tool to counter the volatility in the markets. At the very least you know your maximum risk on any position when trading options (premium + transaction costs). However, even when trading options I prefer to only risk a portion of the premium. I don't see the point of risking the entire cost of the option. If I'm wrong about the trade I want out! Anyway, once again nice job!
Opportunist asks (5:57:20 PM):
Good Evening Trader JimYour premium alerts are the highlight of my day, thanks. Question: I noticed that 8:30 EST this evening, there was already a bar and price data on the Rough Rice Chart marked 4/9/2008.Is that an indication that overnight electronic trading has already begun somewhere that the sun is up right now? If so, will that bar be a part of our (the U.S.) trading tommorrow? Difficult for me to grasp what affect Overnight/Overseas markets have on my trading here.
You got it Opportunist! Once the "evening" sessions begin you can start trading them if you have access to a broker. In fact you can trade them right now! And yes, the price bar that has started this evening will be counted as part of tomorrow's price bar. If you hold your mouse over the price bar you'll see the date change at the bottom of the chart.
gmans asks (5:59:46 PM):
Good Evening, Am I seeing a possible 1,2,3 formation developed on July Oats?
Hey gmans! Yep, be sure you take a peak at this chart from the Chart Book at US Charts Online. I have the formation(s) marked and discuss why this isn't an optimum setup.
mikeJ asks (6:03:53 PM):
Hi Jim: have a question. I'm looking at the Daily corn (e)July 2008 contract. I see the daily 50% retracement is 487-7. Would you feel comfortable using the Hi/lo strategy here (the Hi) to enter this market when it makes a new high? Or does being too close to the 50% retracement not let this trade look like a good trade? Trend seeker is trending up. Help appreciated
Howdy mikej, Yep, this is a potential Hi Lo setup. The placement of the Daily 50% level doesn't come into play when deciding whether or not to use this strategy. The Hi Lo setup would be to either paper trade long futures positions or call options. So an entry would put us in a position going away from the Daily 50% level. Now I'm not suggesting that this is a setup anyone should take. I'm just trying to answer mikej's question. In fact, for more about this market be sure you refer to my Blog write up that I did on Sunday.
Jim R asks (6:08:11 PM):
Is there a relationship between commodities in the same complex..like soy? I'm always reluctant to be invested in more than 1 at a time because I think that if 1 does poorly, they all will,
There can be Jim R. it really depends on the complex or sector. The best way to decipher whether or not this is taking place is to simply monitor the markets in question. Things change so fast nowadays it's difficult for me to give you a solid answer on this one. But monitoring the markets in question should help a lot. That said, I suggest you treat each market on an individual basis. Trade the chart patterns -- regardless of which market they are. Remember, we're not trading the Grains sector, we're trading corn, or beans, or meal, or oats, etc.
FL John asks (6:11:16 PM):
Hi Jim: Is there a reason you only covered 1-2-3 tops in your video? Why were 1-2-3 bottoms left out. I always thought they were mirrors or each other. Is there any dfference between trading 1-2-3 tops and bottoms? Thanks.
Hi FL John! Thanks for the question tonight. Yep, just haven't got around to producing the second one in the series about 1-2-3 formations. I felt the others I've produced were more important. That said, you are right. The 1-2-3 top and bottom formations are mirror images of one another. So you can treat them as such.
Trend Reversals?
Click here to learn all about one of the
most powerful trend reversal patterns
Brian in Montana asks (6:15:31 PM):
Jim can you explain a little more about trend seeker rankings. You seem only interested in the trend itself.
Howdy Brian in Montana, I've produced a 12:32 video about Trend Seeker that explains it in detail. You can access it by going to the Trend Seeker tab and then clicking on the View Trend Seeker Help link in the upper left corner. Then scroll down until you find the video. And yes, I'm really only interested in the trend rating. It coincides beautifully with the chart patterns. I try to keep things simple and this does it for me!
whoie asks (6:19:11 PM):
Howdy Jim! I just wanted to share some experiences I've had since I started trading with real money. March was an absolutely spectacular month for me. I didn't have one losing trade. I was in May Sugar (pennant), May Cotton (strong-1), June Live Cattle (head and shoulder formation), May OJ (hi-lo breakout), June Eurodollar (pennant), and June E-Mini Nasdaq 100 (strong-1). All made profits, the smallest being the Eurodollar at $875, for a total of $9,560 after commissions and fees. Incredible!April hasn't matched that streak, I have lost in May Cocoa, June Australian Dollar, June Canadaian Dollar, for a total loss of $1,610...until...May Rice!! What an icredible move. I entered on the Hi-Lo breakout strategy since the May electronic contract closed at 20.2, which was above the previous contract high, on Thursday. Friday, I placed my order to buy 2 contracts at 20.175 (the previous high) with my target at 21.5 from the wave projection minus a few, and my initial stop below the gap from a couple of days prior. I got filled, and then prices steadily climbed for the rest of the day. After the close, I moved my stop from below the gap (you pointed this one out many times on the Premium alerts) to just below the previous day's low at 19.97 which trimmed my potential loss to about $900 if I remember correctly. On Monday morning, since the night session had gapped up again, I moved my stop to about 50% of the price bar on Friday's action at about 20.375 to protect about $800 of profit. After the close of the day at 21.00, I moved my stop again to protect that move at about 20.63 for around $1,800. Then BADA-BING, BADA-BOOM prices took off that night and hit my target of 21.5 for a $5,300 profit!!! All in 3 trading days!Sorry to go on so long, but I just wanted to tell folks to hang in there and try to show them that the patience and discipline of sticking with your paper trading will pay off. My account has gone from $3,000 to over $20,000 in just over four months. Plan your trades and trade your plan, that can't be stressed enough in my opinion.Later Jim!
whoie, that's AWESOME! Good for you! Sounds like you got it going on. From here on out you don't want to be forcing things. April has shown a reduction as far as the number of opportunities. So be patient. By the way, just before the chat started tonight I posted a message on the blog about be patient. So be sure to check it out. Once again, congrats!
DougH asks (6:21:12 PM):
Hello Jim. Just wondering how Neel R decided to go LONG in feeder cattle when there was no bottom formation and Trend Seeker has been DOWN for 24 days!
Not sure what he did, Doug H. I was just congradulating hiim. Neel R, if you're out there please send some details if you don't mind. Thanks!
Brian in Montana asks (6:22:52 PM):
Sorry Jim I hope I was clear about the rankings questions. What I ment was the strong, extreme ect...
Right Brian, that's covered on the video too. The bottom line is I don't focus on the strength of the trend, some do however and that's why we provide the information. I'm simply interested in trend direction.
charter1 asks (6:26:28 PM):
From Chicago, Hi Jim and everyone joining the chat. I just want to share my experience with trading. Since back in 1998 I traded on and off with real money, I lost more then I made.Mistakes: 1. I thought trading is easy, I don't need to Papertrade 2. Listened to a brokers recommendations 3. Unchecked emotions(Greed, hope and fear)among others. I never gave up though I've been paper trading for about a year and I remember the lessons those mistakes taught me everytime i enter a trade. Learning to trade isn't hard, learning how to deal with yourself prior and during a trade is difficult. "emotions ruin great trade" is so true! Thanks
Well said, charter1. Getting past our own thoughts and emotions is the most difficult part of trading. I've written about two important books previously in our monthly Internet chats and mention them at the Trading Camps. The books are The Disciplined Trader and Trading in the Zone. I feel so strongly about these books that US Charts is now carrying them. You can get The Disciplined Trader for $34 plus $5 shipping. And Trading in the Zone is just $38 plus $5 shipping. If you're interested in these books, I encourage you to give a Course Counselor a call at 541-955-2885 Monday through Friday 8:30am to 5:00pm PT.
Cigars asks (6:30:37 PM):
Trader Jim, I was following along may corn with you on the premium alert line and then once it broke over the top and was time to enter it wasnt on the alert line ,sort of left me hanging there. What happened?
Hey Cigars, Actually I moved from May Corn and started following the July contract. I mention on prior videos that I'd be doing that soon to allow more time for the formations to develop. In addition, I also did a write-up about corn that was featured on the blog on Sunday. So be sure to check it out.
James asks (6:32:50 PM):
Jim, Regarding the June Australian Dollar chart, would you adjust the upper trend line to account for the recent advances in prices or just leave it where it is? Is there any "rule-of-thumb" for adjusting a trend line?
Hi James, I'm not going to adjust the trend lines quite yet. I want to see at least one lower high before I do that. Anyway, I think we all develop rules of thumb based on the experience we have. I think the more charts you look at, the more you'll see what I mean. Keep studying the charts. Remember the "art" in chart!
Rob in Ohio asks (6:35:36 PM):
It seems like all the markets lately have had increased margins...do the exchanges reduce margins if the volatility goes down? Or do they just raise them and keep them there?
Hi Rob in Ohio! Yep, when the markets become real volatile the exchanges will raise futures margin. If the volatility slows down there's a good chance the margins will be decreased. Keep in mind, I don't think there has been a time when so many markets have been this volatile. We've seen many, many markets reach record highs. Thus, the increase in margin.
grampacharlie asks (6:38:23 PM):
Hi Jim:I just want to thank you for the latest dvd on money management. I watched it today and learned a lot and am anxious to apply what I learned. I also just finished reading "The Dicisplined Trader" and "Trading in the Zone". I learned a lot from them as well. Since the first of the year I have doubled my account and feel with this information I can do much better. Thanks for all you do.
Thanks for the kind words about Targets, Stops, and Money Management Made Easy Grandpacharlie! I really appreciate it. The two books mentioned are awesome too! Congrats for doing so well with your account too!
Targets, Stops and Money
Management Made Easy™
 Now Shipping! Click here to learn all about our brand new
Master the Chart™ DVD set,
Targets, Stops and Money Management
Made Easy™
Gary in Texas asks (6:41:00 PM):
Hi Jim and crew thanks for all you do. I just got your Master the chart DVD Targets, Stops, and Money Management. I was especially impressed with disc2 your discussion on Account Ratio and Position sizing really opened my eyes. Thanks again.
Cool, Gary in Texas! In my mind this is one of the (if not THE) most important aspects of trading. Glad you've learned something and hopefully you can put the information to good use in your trading business.
Lorrie asks (6:44:53 PM):
Hey trader Jim, love your new blog. I am new to all this. Is this volatile time just as predictable with the chart patterns and set ups as a time that is not so volatile? Should someone new wait until things settle down?
Hi Lorrie! Welcome aboard! I think this is a great time to paper trade. Practice makes perfect as they say. While there is no such thing as the "perfect trader," you can learn a tremendous amount by paper trading. Plus with the recent volatility, you'll have the chance to learn things at a much quicker speed.  Seriously though, this is a great time to get started. But do practice and learn the techniques on paper before you ever invest a dime of real money. Make sure you are truly comfortable!
Kevin asks (6:51:30 PM):
Do you think there will ever be a Gold or Silver "Mini" contract? It sure would be nice to trade those markets with lower margins.
There are kevin! The mini gold is 33 oz. (versus 100 oz for the full contract) and mini Silver is 1000 oz. (versus 5000 oz for the full contract). Be sure to check with your broker or the exchanges for all the details.
Mike in Michigan asks (6:53:01 PM):
Hi Jim: From an earlier qustion on the July Oats chart. Could that also be viewed as a Bear Flag formation? Thanks
Hey Mike in Michigan! I don't see a bear flag as of yet. I just see a lot of choppiness. I'll keep watching for a formation though.
Kraut asks (6:55:51 PM):
The manual lists the strong 1 as one of the trading strategies but it's almost never discussed in the chats or training videos. Is there something wrong with it or should we use it as we would any of the others?
Hey Kraut! That is a strategy that is mechanically based. I prefer chart based trading but some folks wanted an "automatic" entry technique, so we put the Strong 1 together. A lot of folks love it. It's just not one that I prefer to use. But don't let that stop you from checking it out.
maui boy asks (6:58:01 PM):
Maui boy here: Jim I noticed that the margin for Silver on the US Charts is $7763 yet my discount brokerage firm charges $11644 for one silver futures contract my question; are margins different at different brokerage firms?
Hey maui boy! Yep, the margins we have listed are from the exchanges. The exchanges actually set the minimum margins but brokerage firms can add to that amount.
sniper asks (7:01:15 PM):
Hi Jim, I recently signed up for premium alert service . It turned out to be one of the best investments in my trading I have made to date.It paid for itself in less than 1 week on the rough rice move. I made about $2K long the July contract on a break above 20.50 and then trailed my stop loss tightly so that the strong move to the downside TODAY did not hurt my profits too much. I exited around 21.50. Thanks I almost missed out on this one.Question: I am considering going long the June Heating oil contract. Looks like a pennant to me. Trade seeker seems to like it too.What are your thoughts on possible entry points?
Very nice, sniper! Good job on protecting your position. So many folks get hung up on what they hope to make, rather than protecting the potential profits they've accumulated. You're to be congratulated for taking care of your trade. As far as heating oil goes, I think the train has left the station. Prices broke out of the pennant a couple days ago.
BaMcMurray asks (7:06:54 PM):
Hello, Jim,Could you give more information in your blog or a video about the five types of stops? You peaked my interest in what these different stops are for. I understand stop orders have a risk of slippage, and some markets in the foods and softs require stops with limit orders. How might these different types of stops help me manage my trades? Thanks for all the time and effort you and the course counselors spend on helping people learn the trading business.
Sure BaMcMurray, the blog is free to all US Charts Online subscribers. The link can be found at the bottom of any US Charts Online web page. Simply look for the link titled Jim's Blog. As far as the stops, I think you're referring to my newest 2 DVD set. It's entitled Targets, Stops and Money Management Made Easy. Click the link or scroll to post with the time stamp of 6:38:54pm. This should answer your questions. Thanks for your interest and I'm glad to help.
Notes asks (7:10:55 PM):
I usually trade the 1-2-3 top and bottom formations. When I first started there wasn't a trend to guide the timing for getting into the market. I notice a lag for the trend to change direction, it is after I would have normally gotten into the market. Should I wait for the trend to change or enter after the #2 is passed as before?
Notes, refer to the strategy and the instructions I've put together on this site. Simply click here for all the strategy details. For me, Trend Seeker™ is the key for timing!
FL John asks (7:13:03 PM):
Jim: Does Trend Seeker consider Commitment of Traders Reports as part of its calculations? Is it worthwile to consider this in following the "big money" in the market?
Trend Seeker doesn't consider the Commitment of Traders Reports in its calculations. I don't follow the reports because the GBE approach is all about chart patterns and Trend Seeker trend direction. Hope this helps.
shorty asks (7:16:02 PM):
With the high tech trading nowadays is there any opportunity in trading intra day formations or do they even exsist ?
The chart patterns form in virtually any time frame. But intraday trading is very difficult at best. Soooo many try it and soooo many fail. You have to be quick on the draw for sure. I don't recommend it.
Kevin asks (7:19:13 PM):
Hello trader Jim, Love the service as a new member. I was paper trading the current move with Rough Rice (July) and I had my stops figured out but I was unsure of a target. how do I select a target when the market made a new high?
Hey Kevin, one of the methods I like to use is the Wave Projection Method. If you can't do that a good rule of thumb is to simply trail a stop. Let it take you out of the trade. There are other methods, and in fact I describe several in the new Master the Chart™ DVDs. But if you simply use the Wave measurement that should help a lot. Other wise, good ole' stop trailing works wonders.
Layne Thrasher asks (7:22:54 PM):
Good evening Jim, I'm looking at June hogs their was a hi-low break down that ran away from the entry point, it now has came back and is above the entry price. My question is how many days do you wait for a second chance to enter a market before you just move on to the next set-up. Oh I took my son down to FL. for spring training and now I'm watching a game as we chat. Love this time of year.
Hi Layne Thrasher, there's no set rule. But I'm always checking every market virtually every day. So I don't think you should ever give up on a market. That said, I think the distance the market has traveled away from the trigger point is more important than the number of days. For instance, if the market is two-thirds the way to the target, and you weren't able to get in, that's too far. Hope this helps.
FL John asks (7:24:31 PM):
Jim: Could US Charts consider adding crude, gold and siler mini contracts?
We've talked about it but the thing is the minis follow the big contracts almost tick for tick. So I don't think we'll be adding them anytime soon. We'll keep it on the list though!
ready2win asks (7:28:29 PM):
Hi All. Thanks for everything Trader JIm and hope you had a great time with your family a week or so ago! Regarding the videos that are out, I have the first two in Master the Chart Series and thinking about getting the trading camp series within next week or so. I havent been to a camp yet and since (and I am embarassed about stating this), I still think I see a certain pattern (pennant, channel, etc), but then either on ken's chart book or the pas i realize how stupid I am when i see what the real pattern is, so i am thinking i need to trading camp. Any opinion on which way I should go as far as training? I hope I made sense what I was trying to ask. thanks
Hi readytowin, My friend, you aren't stupid. This stuff takes time and study. Don't expect to learn it over night. Keep plugging away and the recognition of the chart patterns will come. As far as the the DVDs go. . . the Trading Camp covers things I don't chat about elsewhere and covers a lot of different material. The latest DVD set covers just Targets, Stops and Money Management. Not knowing what you feel you need help on it's difficult for me to help you make a decision. It's really up to you. Keep plugging away though!
Trading Camp on DVD
Click here to learn all about the
GBE Trading Camp on DVD!
Step By Step asks (7:33:01 PM):
I was looking back on your previous chats and came across one that I am curious about today. On 07-13-06 the following question was asked of you. What percentage of the time does the Hi-Lo breakout strategy work? Your responce was: I don't have actual statistics on this, however, it is my feeling that the strategy works best on markets breaking to new highs, rather than new lows. My question; How would you respond to this same question today with more experience, etc. working the Hi-Lo Breakout Strategy? Thank You for everything you and all the others do.
Hello, Step by Step! Thanks for stopping by tonight. My response really hasn't changed. In fact, during the last couple of years so many markets have moved to new high after new high that I feel comfortable standing by that statement. Since I don't keep statistics on every market and the new highs they make, it's difficult for me to provide you with much more information. Thanks for the question.
lee in st. pete asks (7:37:15 PM):
Hey Jim, my efforts to begin paper trading have resulted in fustration in a number of ways.(1)markets are blowing through the trigger point,leaving me in the dust.(2)I know how to enter a trade in trade tracker but dont know if im being realistic in choosing an entry.
Hi lee in st. pete! I suggest you call a Course Counselor and see if they can't help you get on track. It sounds like you just need a bit of tweaking. In addition, you might want to take a peak at the Paper Trading DVD set. It's over two hours and I cover all that stuff. Keep in mind that I'm not trying to sell you something. That's why I suggest you call a Course Counselor first. I just don't have the time to cover everything here in this forum so it's best to call them. They are happy to help.
hijoe asks (7:41:47 PM):
Hi Jim. Dr Discipline I'd rather call you. Thanks for all you do. You're long a gold call with a way out ex date of 9-08. You're (way) in the money and so when the option expires you're now automatically moved into the futures market. You check the chart and it's 'strong up'. You set your stop below the last support level, moving it on up 'til - you're out. Is this what a disciplined person would do? Any other strategies after the ex option? Thanks Jim.
It all depends, hijoe. Do you want to take on a futures position? If so, you must have the margin available. Second question. . . is it part of your plan to have the option exercised? The big thing is to write out a plan ahead of entering the trade. Then follow the plan to a "T". If it's part of your plan, then yes, it sounds pretty good. If it's not part of your plan, then no. It doesn't sound good at all. My point. . . have a plan and stick to it. . . whatever it may be!
Jim R asks (7:44:39 PM):
I've noticed that quite a few commodities have changed from having daily limits to no limits. As a result, the price swings seem to be quite a bit more volatile. What do you think about this? Do you feel it helps/hurts or doesn't affect small fry traders like us? BTW...you guys are awesome! Thanks for an amazing service!
I think it just means you have to be extra, extra careful. Maybe choose markets that aren't quite as volatile. Markets that are slower moving -- not crazy. You really have to put capital preservation first! It doesn't matter if you have $1,000 or $100,000 to trade with, either can get hurt and both must protect their capital!
charter1 asks (7:45:22 PM):
Congrats! whoie, It's nice to hear about trades from fellow course members.It seemed like a wild ride.
Ditto!
slowmo asks (7:46:47 PM):
Hi Jim, Just got my Targets,Stops,and Money Management and I must say "Good Job!!". I can see where I could save enough to pay for it on one trade. I wish I would have had access to it about ten years ago. You guys continue to provide an awesome service. I too am sitting on the side a lot because of the high volatility, high margins and lack of patterns. Thanks for all you do.
Thanks for the kind words! It's greatly appreciated. Take things slow and easy and when the volatility subsides be ready to get back at it -- but at a slow and steady pace. Thanks again!
MODOC asks (7:48:51 PM):
HEY JIM I WAS WONDERING HAVE YOU EVER HEARD OR TRIED THE STRANGLE STRATEGY COMBINED WITH THE DELTA STATEGY IF SO HOW DID IT WORK.
I haven't done it MODOC. But I don't see why it wouldn't work. If you're interested in it I'd paper trade it to see if it's something that works for you. If you do, please let me know how it works out for you. Thanks!
Click here for more information or
call 800-230-2427 Monday through Friday,
8:30am - 5:00pm PT!
dirtfarmer asks (7:51:48 PM):
My Brokerages' margin and maintenance limits are different than what is stated on US Charts. Most are close, but some are much higher. Is this typical?
It is dirtfarmer! We basically show the exchange minimum margins. Brokers add to the minimums when they feel it is necessary.
Jay4U asks (7:55:02 PM):
After 10 years off and on paper trading, yes that's TEN, I finally made my first trade with a broker, I bought a lean hog june '08 call option @ 7400 was in the money for 2 days all that changed this week today I'm under 65.00 after comm. and fees. I made the trade thinking I have to be in the market, I now feel I rushed into it, I guess I should have read the quote of the day earlier.
Congrats on taking the next step in your trading career. But remember, never rush into a trade. Have legit chart based reasons to enter a market. Like those taught in your GBE Course. Never put yourself in a position to think you have to trade. It's a sure sign of disaster! So take it slow and easy. Remember how we eat an elephant? One bite at a time! Approach your trading from the same point of view.
Gary in Texas asks (7:57:31 PM):
Hi again Jim and gang, Jim I took particular notice of the Premium alert you did on your first day back from vacation (can't remember exact date) Specifically the downsloping channel in Lumber. I went looking and found 3 more downslopers in short order July Sugar.July Bean Oil, and July OJ I entered at the top of the channel in all 3 and ALL THREE promptly moved against me (luckily I was just experimenting with paper trades hehehe) but i can see the awesome potential of this formation if applied knowledgeably. Perhaps a training video?
Howdy Gary in Texas! The sloping channels many times will offer excellent opportunities. But be sure to filter them with TS and make sure they rally are channels and not just price action falling off the table. There is a difference. That said, I'll see if I can't do a training video on it soon. Thanks for the question and comments.
Rob in Ohio asks (8:00:51 PM):
Jim, why doesn't U.S. Charts and the GBE trade all the commodities (i.e. flaxseed)?
We tend to follow the markets that have the most trading activity and interest. While there are some that we follow and don't have much activity for the most part that's what we do. There are a lot of markets that trade. But if you were to look at a chart of some of the more obscure ones you'd see mostly dots. These don't make for a very good chart pattern. Thanks for your question.
Larry O asks (8:03:48 PM):
Jim, Do I see a 1-2-3 forming in April Feeder? Not sure and want to be sure of what I am looking at (I realize TS is not in agreement yet). Only recently have I noticed that I am able to spot the formations (at times) without having them pointed out to me first. Thanks for all your help. Inspirational to hear about whoie's success, looking forward to getting on a similar roll!! Thanks againLarry from Long Island
Hi Larry O, I don't see #2 or #3 points yet. I only see the #1 point that occurred on April 2. So I'd keep watching. Thanks for the nice comments too!
Poohbear1962r asks (8:04:56 PM):
What is going on with beans!
Poohbear1962r. . . as comedian Steve Martin would say. . . it's a wild and crazzzy market!
atlast9 asks (8:09:57 PM):
Hi Jim, This is in regards to Stop/Losses. When I have my Stop/Loss to a Breakeven point, I can leave it in place and watch action while giving the commodity prices lots of room to go up and down. It seems that when I move out of the safe Breakeven point, I many times get stopped out with just a few hundred dollars. Do you prefer to sit on the Breakeven stop/loss until resistance or support give you a profit you are content to take.
Good question, atlast9. Stop placement is a very individual thing. Something you might want to try in your paper trading is once your position is at break even, consider moving your stop when a support or resistance level has developed. Use that as a guide. Even so, remember, small profits can build an account. Eventually a time will come when you'll move your stop like you mentioned and the market will zoom the other way. You'll count your lucky stars that you did protect your position like you did. Keep practicing. Eventually you'll realize exactly where you should place your stops. You'll do so because you'll feel very comfortable with doing so. Practice, practice, practice.
Tre-Tre from Toronto asks (8:11:27 PM):
Hi Jim it's Tre-Tre I'm back from night school. Two days ago I shorted the us dollar index, don't worry I did everything I was taught (entry/exit) I wanted in a little early and I'll keep you posted.
Welcome Tre-Tre! Alright my friend! The main thing is to stick to your plan! Trail your stops accordingly!
DougH asks (8:14:02 PM):
Hello Jim. Can you briefly explain the difference between the Euro FX and the Eurodollar markets. Thanks. Looking forward to getting my Targets, Stops DVD set from all the great comments tonight.
Hey Doug H! Quite often folks mistake the Eurodollar for the Euro Currency. The Eurodollar is one of the largest traded non-currency markets in the world. In a nutshell a Eurodollar is a U.S. dollar that has been deposited outside the U.S. - especially in Europe, although deposits can be in any country. The Euro FX is a currency. Thanks for the nice words and enjoy the DVDs!
Well that's it for this month. Keep in mind, that you're not alone in your trading journey. US Charts Online, myself, and our wonderful Course Counselors (541-955-2885) are here to help you become the best you can be. On that note, be sure to check out our weekly video training lessons at: US Charts Online. This is a fantastic teaching tool and free to all GBE Members and Online Chart subscribers! Finally, make sure you have a plan prior to entering any trade and use stops to protect your trading capital. As a trader your capital is THE most valuable asset you have! Plan your trade and trade your plan! My next chat will be on Tuesday, May 13, 2008. God Bless and I look forward to seeing you then!
« Back to Chat Archives
|
|
