Hello and good evening! Trader Jim here. . .

Thanks for investing your evening with me and your fellow GBE Course Members tonight! We have a lot to chat about this evening as several markets have been on the move.

July Soybeans; June US Dollar Index; June British Pound; June Australian Dollar; July Coffee; July OJ; and June T-Bonds have all moved nicely of late. And there are several other markets that are in the midst of formations.

So we have a lot to watch and, as always, 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 Bob in AZ, I don't see any sort of triangle my friend. We need to be able to draw a horizontal line across the top of the prices bars for a flat top triangle. In my view, prices have been on a steady incline. This market has rallied nicely out of the channel, and basically at this point the train has left the station.

I'm watching for a visable chart pattern to form before doing anything at this time.

Nice trade, peter! I only reenter markets if a chart pattern has developed. So at this point I'd consider waiting to see if a channel, triangle or pennant develops to offer another opportunity.

Pulling the trigger is often very difficult for traders. But if you have a sound plan you must have faith in the techniques. Then it's up to you to pull the trigger. But again, don't blindly jump in. Have solid plan and trade off of one of the chart patterns located in your GBE manual. 

Hey Jess of the Future! Thanks for sharing what you've learned tonight. Hopefully other Course Members can learn from your thoughts.

Nice job with your trading too. Sounds like you've moved to the next level since you were at our February Trading Camp. Good for you!

Hey peter, yes corn does trade "at night." It trades on the ecbot exchange. The ticker symbols might be what you need and you can find those in the chart legend (upper right corner) on any chart at US Charts Online.

Hi greg in arizona! I prefer limit orders. If you use market orders you're going to get your hat handed to you. The best thing with limit orders is to be willing to give up a little more than you had planned to. In other words, if you wanted to exit an option at 20 points but the market is trading at 17. Consider putting your order at 15 or better.

Hope this helps.

Keep paper trading Cotton Top until you are tired of making money on paper. The biggest propblem folks have is they don't have a plan in place. A plan to take profits and take losses. Have a plan mapped out ahead of time for all trades -- paper or real money. This will help you a lot. In fact, right out a well thought out plan that contains the worse case scenario topics. That way when things fall apart you won't have to be thinking emotionally about what to do. Just refer to your plan.

Hope this helps.

An Important Heads Up!

In the next few days I'm going to release a report on a huge market opportunity that's developing right now. This is potentially one of the most exciting setups I've seen in years. I'm rushing to get my report finished, including a complete description of this unique opportunity, a special way to trade it, and a program for guiding you through the whole trading process.

This situation is about to break, and once it does, we may have a window of only three or four weeks to take advantage of it. So as soon as you get notification that the report is ready - by the beginning of next week, if not sooner - I urge you to order your copy right away.

This is truly the Greatest Business on Earth. Boy I love the markets!

Right on gotrader! I love it! I can tell you have a plan as to what you want to do and that's 90% of the battle! Nice job!

Looks like July Bean Oil is +0.18 here in the after hours session.

Hey Yankeefan! Nice job on the 50% levels and using them to your advantage. The thing about 50% levels is so many traders are aware of them and because of that they work or become a self fulfilling prophecy. It's human psychology at its finest!

I only consider early entries based on the info. I teach in the Early Entry Technique DVDs. Nothing more, nothing less. Every thing has got to line up as stated on that DVD.

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Welcome aboard John M! Thanks for stopping by tonight. Good question too. . . the open, high, low and close for both sessions are used for each daily price bar. So the data for the sessions that started tonight is included within the price bars currently on the charts. And will be there during the day session as well.

Bottom line, both sessions are combined on one price bar.

Howdy Florida Boy! An inside day (a.k.a. inside price bar) takes shape when the high is lower than the prior days high, and the low is higher than the prior days low. In other words, all of the data for the "inside day" fits inside the prior price bar. The day after this price action has no bearing on whether an inside day has formed. The inside day is based totally on the prior days activity.

An inside day price bar is known as a day of indecision. Meaning neither the bulls nor the bears had control that day.

Hope this helps.

Welcome aboard newbie! If you can't get the risk/reward you desire then something has to give. Either pass on the setup or adjust your stop/targets. The way you have it now you have a 1.27 to 1 risk/reward. In my mind it's not worth of trading.

Perhaps you need to wait to see if the market pulls back and offers you a better opportunity. Or like I mentioned above, consider passing on it all together. Remember, there will always be other opportunities.

I don't DIMITRIS. I prefer options that act more like the underlying futures contract and are thus closer to the money.

Roughly 80% of options expire wortheless because people choose to use them incorrectly. This includes the far out-of-the-money options. I've seen it first hand for many years and therefore choose to pass on this style of trading.

Good question though and please keep in mind that this is just my opinion. There are as many different trading strategies as there are traders.

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My bad, CapnWayne! I misread your message. Thanks for the correction. The July contract did not close above the prior high. So it did not trigger a paper trade.

The October contract, however, did close above the prior high and therefore did trigger a paper trade.

Hi Lo Breakout setups take place within any contract. It doesn't have to be just the front month.

Thanks again.

Yes sirre Bonita Joe! Just a couple weeks ago I posted in my blog that there were 15 different markets rated Neutral by Trend Seeker. Today there are two!

Anyway, glad your'e relying on your charts. They tell it like it is!

Hey luvthemcharts, using a dollar amount is just one way you can manage your option trades. Another is to use the charts. If support/resistance are broken you can then exit your options when that takes place.

It's up to you to determine whether or not to be more liberal with your risk. That's a question only you can answer. I would encourage you to paper trade both a dollar risk and breaks of support/resistance for possible exits and see which works best for you. 

Keep me posted too. I'd love to hear how it's working out for you. 

Good question about stops, pammie. Consider this. . . maybe move your stops if the market has moved a certain percentage of the distance toward your profit target. For instance, if the market has moved 25-30% toward your target maybe move your stops to break even. If it moves 50-75% to your target consider moving your stop up to protect 25-30% of the profits accumulated.

I'd encourage you to do some fittlin' with these percentages and see if you can find something that words for you. 

You surely can Dcourt! I tend do feature the "front month" charts in my chart book. But you can move out to the next trading month to allow more time if you like.

Be sure to check out the strategie section at www.gbemembers.com too. In pay particular attention to the Low Ball Technique. It's all about trading options with 30 days or less left prior to expiration.

Good question WyoHunter. While it's possible I think there would be such a HUGE outburst against law makers that most "hurtful" regs wouldn't pass.

Let's keep our fingers crossed that "hurtful" changes never take place.

I never have Limit Up Texas. While I have traded various spreads and even sold naked options, I have never initiated a covered call that I can remember. Since I can't speak from experience with this technique I can't offer you much personal insight.

Thanks for stopping by tonight.

It depends on how they are traded. Meaning the strategy and tools (i.e. options or futures). But to trade an extreme market because your looking for a reversal out of an extreme rating can cost you a lot of money. You must trade it correctly and use the proper tools.

Part of what I mean is actually covered in the report I mentioned earlier in tonight's chat. It's actually one of three different approaches I suggest.

Click here to learn more about our upcoming
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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, June 16, 2009. God Bless and I look forward to seeing you then!