Chat Archives
Commodity Chat With Trader Jim! (tm) with Jim Prince with Jim Prince
from 01/13/2009
Jim Prince Says:
Hello and good evening! Trader Jim here. . . Thanks for investing your time in tonight's GBE chat! We are almost two full weeks out of the holiday price action and the volume and open interest are starting to pick up once again. This generally means that the chart patterns we follow may once again start to take shape. For example, a few of the markets developing pennants, Hi Lo setups, or possible trend line breaks are March Soybean Oil, March Crude Oil, March U.S. Dollar Index, March Sugar, March Coffee, and March Feeder Cattle. By the way, many of these markets are currently featured in our nightly Premium Alert Service™ (PAS) videos. Feel free to share any of your recent paper trading or real money market endeavors. Discussing your trading experiences lets others know they are not alone in this business, and it's a great way for everyone to learn from one another. Free to share your excitement, enthusiasm, and passion. It provides others with hope and insight of what's to come. I'd like send a big "Thank You" to Ken Roberts. 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. Please contact one of our Course Counselors if you need assistance with any of the introductory principles. They can be reached Monday through Friday 8:30am to 5:00pm PT 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 you used. 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, and contract month etc. This really helps your fellow Course Members follow along and learn from your experiences. From time-to-time you may notice that I'll use a bit of "chat short-hand." If you see LOL for example, it means Laughing Out Loud. Or TS which means Trend Seeker. These are the two most promanient bits of short hand you'll see me use.
tomkas asks (6:09:26 PM):
It seems like alot of trades that were triggered have not worked out. I guess no trade charting system is immune to a slump.Still holding soy oil trade that was triggered off original channel listed in your blog.Paid $600.for MAR 36 call that has traded as high as $1600.but now back to 600.Have you given up on this trade. Expires feb 20
Jim Prince Says:
Hello tomkas, Most all of the trading signals that have been generated the last two-three weeks were also signals that I suggested you seriously contemplate avoiding because of the holiday price action. Remember, I stated many times in the blog and on the PAS that the price action during the holidays is quite irregular. Thus it's often best to avoid setups during that time of year. That said, you are quite right that no trading method is immune to "slumps." It's part of the biz. In regards, to the Soybean Oil trade. . . stops were triggered on that sometime ago. Your option more than doubled in value, seems to me you did very well on that setup. Not quite sure why you'd let it go back to breakeven. Remember, trade management is job #1. Small losses and protecting winning positions is what it's all about. Thanks for joining us tonight.
akrick asks (6:11:16 PM):
How come the Trend Seeker updates in the afternoon
Jim Prince Says:
Howdy, akrick! Trend Seeker updates after the markets close. It literally does thousands upon thousands of calculations which typically take a couple hours to do after the stock market indices close at 1:15pm PT. Hope this helps.
algood asks (6:14:33 PM):
Hi Jim, What happened to the grain markets yesterday? My broker said there were some "bear" reports regarding corn specifically. What reports could he be talking about? Evidently these reports are something that investors should be aware of and concerned about. From time to time you have referred to various reports from ??? Should we always be on the lookout for these? Thanks for your help.
Jim Prince Says:
Hi algood! I don't trade based off of reports and actually have no idea what reports were released. The only time I'll mention reports is when they are economical reports and I rarely do that. I will, however, mention the FOMC announcements. I do this not to trade from but just to make folks aware that they could move the markets. With the grains it's been my experience that it is extremely difficult to determine which reports actually move the markets. This is just my opinion, so I ignore them.
Andrew from CA asks (6:16:46 PM):
Dear Jim, I've been wondering what your system of trading looks like beyond the analysis, I.E. what programs you use to alert you of targets being hit. Thanks!
Jim Prince Says:
Hey Andrew from CA, I use US Charts Online and I also use my brokers trading software platform. It will alert me when targets are hit based on specific order prices. That's it. I like to keep things simple and I think that's about as simple as I can make it for myself. Thanks for your question tonight.
Marauder asks (6:19:18 PM):
Hi Jim, As a trader are you anticipating major market moves after the presidential inauguration and confirmation hearings?
Jim Prince Says:
Good question, Marauder. But I try not to guess what a particular market will do. Rather I let the charts tell me and then attempt to base a decision on the price action. Remember, it's best to trade what you see rather than what you think. When I start to inflict my opinion on the markets, that's when I get in trouble. So I try not to do so. So I'll let the charts tell me which markets are the movers.
Jim from Kalamazoo, asks (6:22:21 PM):
With the Eurodollar near it's highest possible point, should we start looking at shorting this market?
Jim Prince Says:
Hey Jim from Kalamazoo! Remember, we trade with the trend until it ends. Just because a market is near its highs doesn't mean it can't go higher, or stay at these levels for sometime. GBE is all about trading with the trend rather than guessing when that trend might reverse. So until I get a chart pattern that says to look for a move lower, we stick with the current long postions as outlined in the Chart Book and on the PAS videos.
jasper asks (6:24:33 PM):
How is it that sometimes I notice that option prices are more expensive that futures contracts? BTW the premium alerts are excellent!
Jim Prince Says:
Hi jasper! Option premiums can often be higher than futures margin. It will depend on how far the option is in-the-money and the volatility of the market in question. It's actually something that happens quite often. Scroll through various option history on the chart site and you'll see what I mean. The options that are well in-the-money will be quite expensive. Good question.
ashere asks (6:27:46 PM):
When purchasing options , is it best to try to purchase as close to the money as possible or not and it depends on the market etc?
Jim Prince Says:
That is generally the best plan in my mind. ashere. This will usually give you the most bang for the buck. And the option will tend to act closer to the way a futures contract will. The further out-of-the-money you go, the more difficult it will be for that option to increase in value.
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Limit Up Texas asks (6:32:10 PM):
Jim I begin using the Price Target in my paper trade decisions it has been extremely accurate. However why and how is it not different from the extended projection wave ?
Jim Prince Says:
Hey Limit Up Texas! I don't quite understand your question. A wave projection is a price target they way I use and teach it. There are many other methods that can be used to determine possible price targets as well (as outlined in the Targets, Stops and Money Management Made Easy DVD set). What method of target projection were you using?
jimbo asks (6:36:06 PM):
In the Trade Tracker only the Euro FX (Forex) is available at approximately $1.32, but currently you discuss the Eurodollar at $.99 on the Premium Alerts.Both are available on Jim's Chart Book. Why is this?
Jim Prince Says:
Hey jimbo! This is a common misunderstanding, but they are two different markets. The Euro FX is a currency. The Eurodollar is a financial. The Euro FX is valued at $12.50 per point. The Eurodollar is $25 per point. Hope this helps.
dhw18 asks (6:38:15 PM):
When a trade is trigger, and you get in with one contract and you then choose to exit the trade with a profit, is there a method to get back in if the trend continues?
Jim Prince Says:
There sure is, dhw18! I teach to wait for another chart pattern to form. Once you get another chart pattern to develop, simply trade it. The one thing you don't want to do is to simply jump back in because you "think" the market will continue to move in that direction. Remember, trade what you see, not what you think.
hobbes asks (6:40:39 PM):
Hey Jim, thanks!!! started out w/Ken back in 03, but set it aside for awhile, been back paper and money trading with you, uscharts, and p.a.s. now for 18 months (it's had it's "ups" and "downs") sept. made a nice trade in dec. bean oil (short at 48.82 stopped out at 36.85). to everyone out there stick with it!! I have my morning and afternoon routine, that only takes half an hour. thanks again Jimp. Be in cocoa in april (sure fire fun day with the kids, cocoa beach surf school my kids are still talking about it and can't wait to go back ENJOY!
Jim Prince Says:
Thanks for visiting tonight, hobbes! Glad you've stuck with this biz, there's nothing like it in the world. Congrats on the Bean Oil trade too! Yep, I'm looking forward to hitting Cocoa Beach in March. That a long with a lot of spring training baseball games will be a ton of fun!
ANDREW asks (6:43:09 PM):
Is there alot of foreign money flooding the commodities markets giving us atypical chart patterns?
Jim Prince Says:
Hey Andrew, I really have no idea whether foreign money is flooding the markets. Folks find it hard to believe but I really do just follow the charts and the various chart patterns. I then combine the chart patterns with Trend Seeker to make trading decisions. Foreign money, weather concerns, market shinanigans. . . non of it really matters to me. I focus on the charts!
Ricrog asks (6:45:51 PM):
How is it best possible to determine the value of an option in relation to price if it is being devalued everyday that it moves closer to expiring. Does it lose (X) amount of dollars with every day it gets closer to expiration. I bought a 320 call option for March Soybean meal, that was worth 1565 on 1/9 at 314.5. The same option was worth 1555 on 10/30 at 288.1.
Jim Prince Says:
Hi Ricrog, the quick short answer is you can get an idea as to the ratio the option will change versus the futures by looking at the option delta. For more on this click the Tool Box link on the GBE site and read through the Delta Options Trading Course. This will give you some good detail as to what the delta is all about. Then, once you undestand it you can review the delta on the US Charts site under the Options Search tab. Hope this helps you out.
gabrield asks (6:47:38 PM):
Happy New Year to all, I put away money all year long for a gift that I gave myself which was to open a trading account with $4000. Here are the details of my 1st real money trade in '09.I was watching Mar 09 Cotton. A 123 Bottom formed within the pennant. #1-39.23,#2 48.00 on 11/28/08 and #3 41.31 on 12/05/08.My trading plan was to enter around the #2 point with the initial target @ 53.9 (the daily resistance) and trail stop at natural support and resistance. Well, prices broke and closed above the #2 point on 12/31 and 1/02 but elected not initiate a trade due to Jim's pounding advise on a good idea to take a break during the holiday weeks because of the erratic price movement.( Thanks!) on 1/5/09 the market opened lower and I got a better fill (47.09 and initial stop@46.01). 1/6/09 moved stop at 48.15 to protect profits and again on 1/9 @49.49. That same day I got stopped out with a profit of $1195.I'm looking over my trade notes and it says, " I must admit I was a little nervous on initiating a trade but I just did what Jim and the GBE methods says to do and that paid off." Lesson I learned is that you can't control what the markets will do but you must have complete confidence in the chart patterns combined with Trend Seeker. Practice is what gives you that! I paper traded for 2 years after a losing period. What a way to start the new year!!
Jim Prince Says:
Awesome, gabrield! Great job staying out of the holiday price action. You did yourself a real favor. Nice trade too. Keep up the good work and remember to continue to stick to your plan!
durga asks (6:51:35 PM):
I am a recent paper trader. I am loosing in paper trade, most of the time. How do I know I will get better?
Jim Prince Says:
Well durga, the best way to tell is to continue paper trading until you're tired of making money at it. When you are, that's the time to consider real money trading. We are all different so keep in mind, some will be ready to move on after a few months. Others may like to take up to a year or more. So keep practicing and make sure you're following the methodology as it's taught. Remember, not all trades will be winners. This is why it's vitally important to keep losses small. You want to be a part of those trades that are the big movers -- i.e. potentially big winners.
stillpprtrdn asks (6:55:39 PM):
Hi JimTwo questions what is the deffinition of front month contract? and should I be watching/using the electronic price for trading decisions?
Jim Prince Says:
Hi stillpprtrdn! My definition of the front month is the trading month that has the most open interest and is nearest today's date. For example, click on the QuickQuotes page at US Charts Online and look at Corn. The March contract has an open interest of 347,120. While the next highest is the December contract at 148,051. Thus, the March contract is the front month.
Marauder asks (6:57:12 PM):
Hi Jim, I will soon be traveling to the Philippines for a few months. I really would like to subscribe to PAS now. Since I will be gone for a few months can I subscribe now then call GBE to turn it off until I come back and receive the remaining balance of months of my subscription?
Jim Prince Says:
Yes, we'd be happy to do that for you Marauder. Just call the office and let us know what you'd like to do and we'll "git er done" for ya!
prospecter asks (6:59:57 PM):
It would seem that the toilet got flushed concerning gold, is it still in an up trend, and could Jan 20th be a part of this uptrend?
Jim Prince Says:
Well prospecter, right now I see a pennant formation on the chart. Trend Seeker says the trend is neutral. So right now I'm not looking for a move in one direction or the other. I want to get trend direction from Trend Seeker first (up or down). Once that takes place, then I'll look for a move in that direction.
Limit Up Texas asks (7:02:49 PM):
Jim, I was using the method when trending down subtract the recent Hi from the Lo and add the difference to the recent low. I think I saw it again in today's premium alert I don't recall the market
Jim Prince Says:
Hey Limit Up Texas, I think you're referring to the Profit Marker. This is used when the most recent wave is either to large or not easily identified. I like to use it for short-term targets too. Especially if the Wave Projection is quite a bit further away from the entry point. That way you'll have two possible targets identified.
Jess of the Future asks (7:05:32 PM):
Hi Jim, I've incorporated your rule about using a 1/1 risk/reward ratio whenever the prices are getting close to the target. For me I wait until it's 75% there. Do you base this rule on the closing price of the day or will you move the stop intersession if you notice prices advancing toward the target? By the way, after 3 successful months paper trading starting my real money account at Daniels this week!
Jim Prince Says:
I'll move it intraday if I'm watching the market Jess of the Future. If not, I'll simply move the stop at the end of the day. It's great that you have a plan, continue to stick to it~ Got the pic you did of your Mom on the sugar chart. It's awesome! Great work my friend. Congrats on the opening of your account. Remember to take it just like you'd eat an elephant. . . one bite at a time!
JohnG asks (7:07:08 PM):
Hi Jim, You've discussed shorting lumber on the PAS recently. Does the low volume (< 400) pose an issue?Thanks...I'm learing a ton thanks to you and your team!
Jim Prince Says:
That's pretty typcial for Lumber, JohnG. I'd just be really careful because in the thinner markets you can get some pretty good moves very quickly. Just be sure you've done everything possible to protect your position. Other than that, let the market do its thing!
jack h asks (7:09:40 PM):
WHEN BUYING CALLS AND PUTS, HOW FAR OUT DO YOU USUALLY GO?
Jim Prince Says:
It depends on the strategy, jack h. But with a typical purchase 90 days is a pretty good time frame to use. Of course you can elect to use less time too. Just remember, the more time til expiration, the more you'll pay for the option because you're paying for that time value. Also keep in mind that in the last 30 days you'll typically see the options lose their time value the quickest.
cpyhel asks (7:12:00 PM):
Hi Jim I have noticed when trading options off a formation instead of futures many times by the time I can enter the trade the next day the market has exceeded the entry level from overnight price action. Do you then tend to avoid or wait to enter after a pullback the next day or a few days later? Thanks for your input.
Jim Prince Says:
I wait, cpyhel. No chasing the markets allowed (hehe) Sometimes you'll miss an opportunity but generally you'll be better off for waiting for a pull back. If the market doesn't pull back then I'll miss the trade and move on to the next opportunity.
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Gecko asks (7:14:01 PM):
Do ask and bid prices apply to options?
Jim Prince Says:
They sure do, Gecko. Check with a broker for actual bid/ask prices.
johnh_2007 asks (7:16:13 PM):
Hi Jim,After almost 2 years and up to 50 different paper trading methods, which I'm still paper trading, I think I have a good plan: 1) PAS opportunities, 2) trade opportunities that offer a reward to risk of at least 2 for 1 using the entry, strong levels of support/resistence for stops and profit targets, and 3) run it through ARC to see how many lots to buy based on risk tolerance and cash in account. The hardest thing to do over the past 2 years was to find what I was willing to risk. Does this sound like a good plan?Thanks Jim for your guidance.John
Jim Prince Says:
Sounds like your got it johnh_2007! Good for you and way to stick with it. The next thing to do. . . is to stick to the plan once you've implemented it. In other words, don't do what a lot of others do and change your plan in midstream of the trade. Once again, congrats for figuring out what works for you!
Dartanian asks (7:20:41 PM):
Hi Jim When you get stopped out of a few trades that did not go your way, what do you do to mentally get back in the game of winning trades and not continuing on a downward path?
Jim Prince Says:
Good question, Dartanian! The first thing to do is to take some time off away from the markets. Let your head clear for a week or two. Never looking at a chart or anything to do with the markets. Next begin paper trading and keeping a trade journal. Journaling is very important. It will help you make sure you stay in the right track -- but you have to refer to prior posts you've made on a regular basis. Then read the Mark Douglas books I recommend at 4 Star books and watch the Master Your Inner Trader DVDs that we put together. All of this should help you get out of the downward path and headed the right way once again.
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dhw18 asks (7:26:11 PM):
Dear Jim, Is the only way to participate in a trade to secondary and 3rd targets to get in with more than one contract?
Jim Prince Says:
You got it dhw18! The exception being if a chart pattern developes between targets and allows an entry other than that, look for another opportunity.
akrick asks (7:27:25 PM):
Hey Jim i don'tunderstand the TS seeker updating Fridays info on monday afternoon-way too late to do me anygood
Jim Prince Says:
Hmmm, I'm not sure what you're referring to akrick. TS is updated every afternoon the market trades usually by 4:00pm PT.
Mike in NYC asks (7:28:42 PM):
Have you ever considered adding the Flip Charts feature to the Weekly and Monthly charts? For instance, if one would start with the Corn Weekly, and then be able to flip through all the markets, from that starting point. Thanks.
Jim Prince Says:
We're actually in the process of implementing that Mike in NYC! Plus we'll also have TS ratings available too.
Marauder asks (7:29:54 PM):
Hi Jim, I would like to make a comment. I recently joined GBE again. I followed the recommendations in the "Getting Started" section of the GBE website. I went from step 1 right on down the line. What a great sequence. I did watch and listen to all the training videos from the earliest to all the way up to present. It was a fantastic and informative journey. Job well done by you and your staff!
Jim Prince Says:
Thanks for the kind words, Marauder! Glad you found the steps helpful and the videos useful.
darwin asks (7:31:25 PM):
Best not to trade during xmas holidays! Whats yr advise for summer holidays?
Jim Prince Says:
Generally speaking. . . no new trades initiated going into a 3-day holiday. Volume and open interest tend to dry up around the Labor Day holiday too so it's often best to be lean during that time frame as well. Just my opinion.
Murray asks (7:37:28 PM):
Is it advisable for a new trader starting with a brokerage firm to use their trading tools too, or should the trader continue to the the United States Chart Company charts, tracking system, etc. (or should the trader try to use both sets of tools)?
Jim Prince Says:
Well Murray I teach a certain methodolgy and the tools for this methodolgy are all at US Charts Online. If you choose to do something else that is entirely up to you. I wouldn't attempt to tell you that we are the only charting service etc. out there. I just believe that what we have in conjunction with the trading methodolgy is simple to follow and use. And for me, I can't ask for more. We're always here to help you either way, Murray. Always feel free to call a Course Counselor for assistance at 541-955-2885 Monday through Friday, 8:30am to 5:00pm PT.
shiva d asks (7:42:33 PM):
Hey Jim,is there some reason why my questions don't get used? i notice some getting more than one question in and was wondering if u could share some info/exp on the one in sent in? thanksshiva d
Jim Prince Says:
Hi shiviad! I searched the entire database of question tonight and don't find a one from you. I don't choose question from a certain individual. Rather I choose questions that I feel are in tune with the overall bundle of questions that have been asked this evening. Sometimes they happen to be from the same person. However, keep in mind that if a question is askes I have limited time to write an answer. Some questions require long amounts of detail to provide the right response and this just isn't the forum for that. If you have a question that's not answered feel free to call a Course Counselor for assistance. They are happy to help.
slowmo asks (7:44:37 PM):
Hi Jim, the longer I trade the more I see that the things you teach work. I have learned a lot from you, thanks. Now if I could just keep to my plan and keep from over thinking the trades I could really do well. Keep up the good work. Gary
Jim Prince Says:
Thanks for the nice words, Gary! It sounds like you're making progress. Keep working at it and you'll reach the goals you've set. It takes some time, so be sure to have a plan prior to every trade and stick to it. Keep on truckin'!
Step-by-Step asks (7:47:51 PM):
Just wanted to ask a question about March Bean Oil. First what I have learned is that a formation, ( ex. pennant, triangles, channels, etc.) should have 2 touches. On PAS, for a while now, you have said that March Bean Meal is in a channel, eventho there is only one touch at the bottom. I have to tell you that I also look at it as a channel, even if there is only one touch at the bottom, which goes against what I have been tought. I believe that I look at it as a channel because the bottom touch is a HiLo breakout to the downside, if TS agrees with everything. Could you please give your thinking / perspective on this formation and matter. Also thanks to you and all the personel at U S Charts.
Jim Prince Says:
Hi Step-by-Step, you are absolutely right in regards to two touches to the trend line. That's why I prefer pennants because you can't draw the formation if you don't have at least two points to touch the line to. Channels are a different animal. It is my experience that few channels provide "two" touches at the top and two at the bottom. So many times we are left with just the single touch. So I take that as it is and still trade in the direction of the TS trend rating. Hope this is clear and I"m glad to help.
TraderTaylor09 asks (7:51:16 PM):
I'm currently reading The New Market Wizards by Jack Schwager and I am really enjoying it. I was wondering if you've read it and if so, what do you think about it? Also is there any other books you might recommend?
Jim Prince Says:
OH MY! Yep, I've red that book and absolutely love it! Of course you know that cause YOU'RE MY SON! LOL Folks my son is gettin' interested in trading so I gave him a few of my favorite trading books for Christmas. Son, be sure you read the Jesse Livermore book too. It's a classic! (Don't tell him this. . . but I love the fact he's getting interested in the markets. Makes it a lot of fun. Heck my youngest daughter is starting to show some interest too.)
losser asks (7:53:13 PM):
Looser ask;why does t.s. differ form daily,weekly and monthly in up or down direction. --for example --corn the daily will say up and the weekly and monthly will say down?
Jim Prince Says:
Good question losser! The thing you have to remember is that TS is examining different time frames of data. On the daily chart it's looking at the last 6 months. On the weekly chart the last 2yrs. And on the monthly chart the last 6 years. The trend in any of these time frames may differ from another time frame simply cause of the data examined.
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JohnG asks (7:57:02 PM):
Hey Jim, I want to thank you for getting the prices on the GBE site to update every 10-15 minutes (I think that's correct). Any chance in the future prices can be given in real time? I suspect real time may be a bit pricey. JG
Jim Prince Says:
You are welcome for that JohnG! Real time data requires exchange fees. In other words, the exchanges charge a fee to view the realtime data (and it can be spendy).
Florida TC asks (8:00:33 PM):
Hey Jim. First time i've been able to join you in the chat room.(Work gets in the way of a lot of things.) I was wondering, with the purchase of a futures contract one can protect ones losses with a "stop loss". How come "stop losses" are not available with options?
Jim Prince Says:
Thanks for joining us tonight Florida TC! Stops on options are not available because the exchanges do not allow them. That said, a good broker can actually work stops for you from his desk. Meaning he's not held on the transaction but he should be able to set price alerts in his computer. If the alert is triggered he can then execute the order for you. That way you don't have to sit in front of the computer all day or worry that your order won't get executed. Btw, the guys at Daniels Trading can easily do this for you.
Yeshua asks (8:02:55 PM):
Gretting Jim,What is your favorite technical pattern you enjoy trading? Regards,
Jim Prince Says:
Hi Yeshua! My favorite chart pattern is the pennant. For me it's easy to recognize. As far as strategies go, the Hi Lo Breakout Strategy runs a close second.
manny asks (8:05:55 PM):
hi jim why do you mostly follow grains and not the currencies and other markets thanks manny
Jim Prince Says:
Hi manny! I follow all the markets. Right now the Currencies don't offer any setups. Most recently the Grains have. You'll see opportunites cycle just as market movement does. So I'll include the currencies or any other market if I see a formation that justifies it.
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shiva d asks (8:10:51 PM):
Oh! In that case i will repeat:Hi Jim, Hey y'all.can you tell us if there is any significance to trends of the weekly and monthly trends being in line with the daily when considering a trade? i understand (pretty much) the use of the daily charts, esp the front month, in our methodology, but notice that sometimes the daily is up, the weekly might be down and the monthly could be neutral all at the same time. whadaya think? thanks shiva d
Jim Prince Says:
Hi again, shiva d! I pay particular attention to the Trend Seeker trend rating on the Daily chart. The reasoning is because most of the trades we are in are for less than 30 days. If we were more long-term traders then we'd want to focus on the TS rating on those charts. Be sure to check out this Training video for additional insight: 07/14/06 - Analyzing A Market From The Top down.
B asks (8:12:54 PM):
Hi Jim, great to be with you again. Is Martin Luther King day or President's day considered a 3-day holiday. Or are you just talking about the major holidays such as Memorial Day and Labor day for the 3-day holiday no new trades initiated?
Jim Prince Says:
Pretty much any three day weekend, B. The July 4 holiday and Labor Day are summer holidays and the volume/open interest tends to decrease in the summer anyway. So pay particular attention to those holidays.
deacon asks (8:15:00 PM):
If the Risk/Reward is less than 2 to 1 do you always not take the trade?
Jim Prince Says:
Hey deacon, I prefer not to. 2:1 or higher is the best in my mind just as outline on the Targets, Stops and Money Mangement Made Easy DVDs.
Murray asks (8:16:22 PM):
Jim - thanks for your response. I will definitely stick with the US Chart Company going forward.Regards - Murray
Jim Prince Says:
You got it Murray!
Dartanian asks (8:19:59 PM):
Hi Jim I am trading the Eurodollar Futures contracts in Dec 09. I am Bullish on this position and when the market pulls back I am choosing to add to my positions versus holding a very close stop. What is your take on getting stopped out so early with a small profit versus adding contracts when it goes back to it's long up-trend line?
Jim Prince Says:
To me it all depends on your trading plan Dartanian! If a reentry is part of your trading plan -- written prior to entering the position -- then by all means consider it. If not, you're shooting in the dark and I'd avoid it. I mention this at every Trading Camp. . . if you get stopped out, you can always reenter as long as your have a sound technical chart based reason. If it's there, go for it!
Jim Prince Says:
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 US Chart Online 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, February 10, 2009. God Bless and I look forward to seeing you next year!
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