Hello and good evening! Trader Jim here. . .

Thanks for joining tonight's chat! The last month or so has presented several interesting situationas as many markets are in trading ranges. It's been sometime since I've seen so many channels in so many different marktets.

For instance, July Wheat, July Corn, June Live Cattle, April Feeder Cattle and May Lumber are all in channels. While July Soybeans and July Oats recently broke out of trading ranges.

So we have a lot to watch and we have to exercise the traders best friend. . . patience! We must wait for the setups to occur and not force our way into the markets because of our opinions. Patience is the key!

By the way, most all of these markets mentioned above are currently featured in our nightly Premium Alert Service™ (PAS) videos.

I encourage yuou to freely 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.

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 provides others hope and optimism 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 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 prominient bits of short hand you'll see me use.

Hey golden!

Click on the Trend Seeker tab at the top of any US Charts page. Then click on the View Trend Seeker Help link on the left side of the page. Then in the next window that loads click on the Trend Seeker video link. It runs about 19 mins and tells you all about Trend Seeker! Enjoy!

Hey HOOPY! Thanks for stopping by tonight. If you take a peak at the first question/answer posted (From Rob D in ND) you'll see that I indeed recommend early entries. I explain exactly how to do so in great detail in the DVD mentioned.

Thanks again for stopping by tonight and and welcome to the Greatest Business on Earth!

Hi DIMITRIS! I think your go around is typical for most traders -- especially if you're just beginning. Remember, losses are part of the business and should be expected. The key is to make sure you have the proper risk/reward ratio and purchase the correct number of options or futures contracts. This way the winners really pay off and help build your account. While the losers should be small enough and not hurt.

It takes sometime to get that consistancy. This is not a get rich quick overnight biz. So stick to it, keep positive and minimize our losses. If you keep at it you can reach the goals you desire!

Hey Dan the Man! Stop placement is probably the hardest thing for traders to learn. The key though is that you did have a stop in place! Always remember that. Stops are your BEST FRIEND!

I like to trail stops above resistance or below support. Sometimes you get stopped before the larger move occurs. That's part of the biz. But you can always look to get back in if another formation develops. 

Be sure to look at the various Training Videos I've produced at US Charts Online that cover stop placement. Perhaps you can glean some gems from them.

Also, in regards to your trade, don't look at it from the point of view of what you missed. Instead focus on the fact you made a profit. Now it's time to move onto the next setup! Nice job!

Hi jasper! CME is the Chicago Mercantile Exchange and the pit traded sessions. GBX is the computer traded Globex markets.

US Charts Online focuses on the Globex markets. You still have access to the pit sessions, but so much of the trading activity is now on the Globex it really isn't necessary.

Hi canadian guy! While I appreciate your question I don't try to guess long-term market direction. I let the charts tell me direction and since I'm what I call a short-term position trader (which is what I teach via GBE) I focus on the Daily charts.

So my short answer is I have no idea. I'll look for the setups and follow the markets from there. 

Thanks for stopping by tonight.

Hi Betty in PA! The first thing you'll want to do is click here. You'll be taken directly to a step-by-step layout of exactly what to do. You can also call a Course Counselor for assistance at 541-955-2885 Monday through Friday, 8:30am - 5:00pm. You can also invest in a copy of my two DVD set titled Paper Trading: How to Develop An Unfair Advantage.

Any or all of the above mentioned should help you out.

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Howdy maguila, all trades are mentioned using the underlying futures contract price. US Charts does not provide the spot price and frankly it wouldn't really come into play based on the techniques I teach.

Remember, I focus on the underlying futures contract for chart patterns. Then we trade the chart patterns in the direction of the Trend Seeker trend rating using either futures contracts or options.

Thanks Bill in NC! Very nice and kind words. I really appreciate it.

Yes, I enjoyed spring training and Cocoa Beach. Spent some real quality time with my brother and his family. I had an awesome time.

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It looks like it did, landmar!

The Early Entry Technique DVD shows early entries for pennants, triangles, channels and 1-2-3 tops and 1-2-3 bottoms.

Personally I'd focus on the DVD you just ordered. Down the road if you feel the need you might consider the Early Entry DVD. But to me, money management should be the #1 focus of all traders.

Keep plugging away and seriously implement what you learn in the DVDs coming your way. You'll be glad you did!

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Not at all! Check out the chart of June T-Bonds. It's far from the contract high!

Stick to your plan, RickyD in Minnesota! Always stick to your plan. Don't try to outguess the markets. This is why I always say it's so important to have a plan. Most folks trade from the seat of their pants and wonder why they end up net losers. Then they blame the markets for their downfall when in reality they should have taken responsibility for their actions or lack of.

So stick to your plan. Build good habits. Take losses when you're supposed to and let your targets be hit. Bottom line. . . have a plan and stick to it!

Congrats grampacharlie! Congrats for having your stop in place and stickingto your plan. It's those times you don't keep your stops and/or your plan is when you get burned.

Nice job!

Sure, Rob from ND. Always have a complete trading plan written ahead of time for each trade. This includes entry, stops, targets, mulitple targets if you're trading more than one postion.

So always have a plan and write it out before you enter the trade. I find I'm much more likely to stick to my plan if I write it out rather than keep it in my head. If I don't write it out it's just too easy to change.

Hey optiondude, My personal rule is to always wait for the close to be lower in the case of a downtrending market or higher in an uptrending markets. When it happens that's the trigger for me. If the market closes at a level equal to the prior low I'll wait it out. For me it's not a trigger.

Hope this helps and welcome to the PAS!

Well Alabama KID it's actually the same whether trading Corn or the Dow mini. You are anticipating that the underlying market will move in a certain direction. Either way, you are only trading contracts. You aren't actually trading Corn, you are trading a contract for Corn. It's the same with the indices, you're trading a contract.

I'm not quite clear as to what you mean about adding liquidity. Traders have an interest in a particular market, that's what adds liquidity.

It's entirely up to you optionsid. I always place mental stops for option trades so I would exit if my mental stop is hit. On the plus side I'd exit if and when my profit target gets hit.

This goes back to what I said a bit ago about having a plan. No disrespect intended because I want you to succeed. So be sure you have a complete plan in place prior to entering a trade. No seat-of-the-pants trading! 

Pros always have a plan, if your goal is to be successful (i.e. trade for a living) you've got to trade with a plan -- all of us have to!

I do my "work" after the markets close. I spend an hour or two reviewing charts etc. after the close and then I'm done for the day and can hang with friends and family.

Then I can execute my trades in the morning without feeling some sort of pressure to review a market just before (or as) it opens.

This works best for me.

Hey Skinny! The only bracket I did this year was the sand on one side of me and the Atlantic Ocean on the other (from Cocoa Beach). LOL

Just didn't get a chance to do a NCAA Tourney Bracket this year.

KY Rookie there are thousands of traders on the planet and they all have different methods to trade by. When GBE Members are buying others are selling. To me it has no effect. The markets have been around for over 100 years. The psychology of market participants is what moves the markets and makes the various chart patterns. Some traders trade options, some futures contracts. The patterns have been around for as long as the markets have. My point is the patterns will continue to develop with or without me, you or our neighbors.

Thanks for your question.

This is why having a stop in place (in this case a mental stop) is so important. I teach to only exit if your stop is hit.

Again, a plan is vital. This will eliminate a lot of what you're battling.

I agree with the "Play Ball" comment Johnny D!

In regards to your question. . . I don't think it matters whether you place your order during the day or evening session. We've heard from several folks that prefer to use the evening session. (I think a couple of these comments were posted in last month's chat).

Thanks for stopping by tonight.

LOL, no problem jasper. See, I told you I don't follow the Peso! Guess I was thinking back to the old days. LOL

Still I don't follow the Peso and have no plans to do so.

Nice job on the Lumber trades! Way to go! 

That's a great question Gold Trader! Personally I believe the mental aspect of trading is the most important thing to master. That said, proper money management runs a very close second.

That said, I'd probably lean towards the Inner Trader first and then Targets, Stops and Money Management Made Easy.

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Hey Jess of the Future! Thanks for the kind words. It was my pleasure to work with you, your brother and Mom.

Yes, I believe a break of a trendline that has three points is a much more meaningful signal versus a trendline that is drawn by touching just two points. Quite simply it means the level of support/resistance as outlined by the trendline is stronger with more touches. Thus, the more significant is the break if and when that line is broken.

It's good to be back Tradetracker! I only consider trading markets that have chart patterns. So if no pattern, no worries. If the trend rating changes and there is no pattern, oh well. I'll catch it next time. At least that's the way I try to look at it. There will always be new opportunities.

You are right, some markets have been quite erratic of late. We just have to be patient and wait for the "money giving cycle" to come back to us. We don't want to get caught up in the chop cycle. So be patient and wait for all of the criteria to come together.

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Good question jasper, you only take delivery in contracts if you choose too. Other wise we get nothing. You exit before FND or LTD. That said, if you are holding a US Dollar contract and LTD comes and goes, this market is cash settled. Meaning if you have a profit from entry your account will be credited the cash. It's just the opposite if your position is a loser. Cash will be deducted from your account. By the way, this is for futures contracts.

Well that's it for this month. I want to thank each of you for investing your time with me tonight.

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 my 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, April 14, 2009. God Bless and I look forward to seeing you then!