Good evening! Trader Jim here. . .

Thanks for investing your time with me and your fellow GBE Course Members this evening!

Several of the Grains have made nice moves lower since we last met. But don't let the declines in these markets discourage your long-range plans (i.e. Grain Report). The proper mindset is that we'll potentially be offered better opportunities the lower these markets move.

Anyway, we've seen nice moves recently in Corn, Soybeans, and Soybean Meal and recent triggers in the U.S. Dollar Index and Live Cattle. Plus we need to keep our eyes on the Euro FX, Sugar, Hogs to name a few.

I also should mention that for the most part just about all of the markets mentioned above were (or are) featured in my nightly Premium Alert Service™ (PAS) videos.

Just a reminder that the summer time is very often the slowest time of the year for trading opportunities because so many traders are on vacation etc. Thus, it's our job as traders to trade what we see and not what we think! In other words, try to find the best opportunities available. Other wise, we should sit on our hands and wait for setups to materialize.

I encourage you 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 prominent bits of short hand you'll see me use.

Hey KEG09! Thanks for joining us this evening. You can buy both puts and calls at the same time. That is a well known strategy as you are basically "bracketing" the current price action. The problem come in that both options are a "cost." So one of the options has to move far enough to offset the expense of the option that doesn't move. So basically you have to dig yourself out of a hole.

I prefer outright put and call purchases as well as various spread strategies as explained in my new Advanced Options DVDs.

Thanks again for joining us and welcome aboard!

Hey Jim, Very long-term is a Wave Projection that comes in at 261-2. But I doubt that will be reached prior to contract expiration. A more realistic Profit Marker target comes in at 294-6.

Hope this helps!

Hi fairlane. I am actually watching for a chart pattern to form in September OJ. Since one has not developed as of yet, I couldn't tell you where I'd consider entering at this time.

The key though is for you not to have to rely on somebody to tell you at what price to get in a market. That should be part of YOUR personal plan and should be based on some sort of chart reading - in my opinion.

My thoughts. . . wait for a chart pattern to form and then consider an entry at that point.

We haven't set a date as of yet, Kristofor. If I do decide to do one I imagine it will be in the late fall. Keep an eye on your email mailbox for info. down the line.

Thanks for your interest!

KEG09 all markets will advance and decline within a trading range (i.e. channel). But the markets that I currently have marked as being in trading ranges are in fact trading in channels. I'm not sure what you're seeing. Perhaps you could post the question again but this time mention a market or two that you're looking at.

Thanks!

As long as they'll have me, victruck. What more could a person want out of their professional life but doing what they want?

I've been at this (starting with Ken) since 1993 and am still going strong. One of the great aspects of teaching is the fact that it helps me keep on my toes and analyze the markets in a very focused fashion. Plus the more I teach the more I learn ,and to top it off I've had the opportunity to meet a lot of very nice people.

I don't have any plans of going anywhere. I love doing what I'm doing and can't think of anything better.

Thanks for your question.

One thing you'll learn after being around this business for awhile is that there are NO guarantees, keith in chicago. There is no sure fire way, period.

That said, the best process I've come up with is the use of chart patterns and confirming the trend reversals with Trend Seeker. But it's not flawless.

Don't take my word for it though. Paper trade, paper trade, paper trade. Learn the 1-2-3 Strategy located in the Strategies section of this web site. That will go a long way towards educating you.

Good question.

Hey Bonita Joe! I stick to the old rule of thumb in regards to possible targets associated with channels. The short-term target can simply be the height of the channel. A longer-term target is found by simply measuring the length of the channel and then applying that length to the breakout point.

I first learned these techniques back in the 1980s and they still work to this day.

Thanks for the kind words and, while I missed the full blow HR contest (I was relaxing at the coast away from TV), I did catch the highlights on ESPN. I'll watch it in full the next time I see that ESPN is broadcasting it.

Yes, Greg L. All brokers will let you move stops to wherever you like, as often as you like. It's a part of the business and any broker will be glad to do it for you.

Thanks for joining us tonight.

Hi junbec! Welcome to the chat! We have a good working relationship with the brokers at Daniels Trading. I've met with all the brokers that we work with and they are a very knowledgeable bunch of guys and know our course materials. And to top it off the are very nice people too.

Find out more about Daniels Trading via the link here on the left side of GBE site.

Generally speaking a good amount to start with would probably be about $5,000. Much less than $2,500 and you are pretty limited as to what you can do. In fact, most brokerage firms won't open an account for less than $2,500. And of course you could start with more.

I updated that chart this morning with my notes. The breakout took place during the trading day. There are 110 charts in my chart book and it takes me about and hour and a half to update just the daily charts. I just haven't gone back over the charts this evening.

That said, the breakout did take place and a paper trade to the upside has been triggered.

Good eye!

Hey Peter, two things. First know that Trade Tracker at US Charts Online will do the calculations for you automatically.

Second of all, be sure to watch the Training Video I did titled How To Calculate Profits and Losses. It runs 10:40 in length. I produced the video on 12/01/06. Search for and watch that video and I think it will help you a lot.

Last but not least, give a Course Counselor a call at 541-955-2885, Monday through Friday between 8:30am and 5:00pm PT for assistance.

I hear ya, superdave! Doesn't seem like it's offering the best place to put your money. But who knows for sure? If you feel it's worth the risk, then you might consider going for it!

I'm a bit reluctant, so I'll watch it from the sidelines.

If you do trade it, please let me know how it works out for you.

Not at all, Full House From Chan. It works for any market (futures, stocks, indices etc.) regardless of the value or scale. I encourage you to paper trade this and even go back through the charts to see what I mean.

This technique has worked long since before I was born. The neat thing is you don't have to be a rocket surgeon to use it! 

Yes, wallace you basically get the premium back plus whatever profit the option made above what you paid for it. So if the option cost $500 and the market rallies and the option is now worth $1,500. If you liquidate the option at that price your profit is actually $1,000 because you have to subtract your cost of $500 (even though you get it back).

Hope this is clear.

Stop losses aren't available on options in the truest sense. However, you can place a stop order with some brokers (i.e. Daniels Trading) and they will keep it on a ticket and set an alert on their computer. Then if the option trades at that level, their computer alert will sound and they can execute the liquidation order for you at that time.

Note that they do this on a not held basis. Which means they do their best to get you your price but there is no guarantee you'll exit at your exact price.

Some brokerage firms may do this a bit differently, but that's it in a nutshell.

I'm not completely sure what you mean, John from Farmington. US Charts Online already has Trade Tracker. It allows you to set up as many paper trading (or real money) accounts ad you like. I encourage you to go to the site and practice and play around with Trade Tracker. It's a great tool.

Hi Tim.Davis! That's a point of resistance on the October chart. And while it could act as a roadblock, there are no other supporting points of resistance at that level. So if it's broken, it's possible prices will try to test the horizontal line (initial target) I've drawn at 95.

Time will tell. . .

Thanks for the nice words, Florida TC. Yes, my "limit" is found in the article titled Rule of Threes found in the ToolBox here on the GBE site. Be sure to read that article as it covers all the details.

When options are quite expensive that's the time to consider the more advanced strategies found on this site. They can really help cut your "costs" down and still provide a nice profit potential.

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You could consider that a bear flag, vacationman. A breakout of it will get you in to the market just ahead of the breakout of the channel I've marked on the chart.

Here's what vacationman is talking about. . .

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The best way to take part in those moves is to always trade multiple positions and set multiple targets. Also, you can consider adding to positions as the market develops additional formations during it's trend.

Using something as simple as the MET can catch a HUGE part of any trending market.

So even if one couldn't afford multiple positions, there is still the simple MET method that can get you, and keep you on board monster moves.

Good question!

Hi Ludwig, quite frankly this is not a get rich quick business. If you're in it for that, it's the wrong reason. While riches can come from this business, it takes time and practice. It's no different than going to law school or medical school. Lawyers and doctors become good at their crafts by practicing and fine tuning themselves and finding what works best for them.

So practice by paper trading and continue to get better. If you put your heart and soul into it you can get what you want. Those that fake it get what they want also.

I wish you the very best and encourage you to paper trade and stick with it.

Thanks for the nice words, ready2win. Yes I do use the paper charts. I review each issue for a different perspective than what I get from the online charts. In fact, I have a copy sitting on the corner of my desk!

Anyway, most of my trading decision are made via the electronic charts. But I do review and put some study time into the paper charts.

Nice job, Russ-Malibu! And thanks for sharing the details of your trade with your fellow Course Members.

While your strategy is a bit more advanced and not one I'd recommend to other Course Members, it just goes to show you that there are many different ways to make a profit in this business.

Congrats!

You won't know your exit price, Tim.Davis until you liquidate the trade. You have to decided via a profit target or a stop loss as to where you'll exit the trade.

One other thought just crossed my mind. . . you can also use the Profit/Loss calculator on the Interactive charts. (I believe I covered this in the video I mentioned earlier.) So be sure to give that a try too.

Thanks Marsha! The Good Lord willing, we'll all be around for a long time!

Thanks for your nice comments too and thanks for stopping by tonight.

I have, John from Farmington but it's not part of my regular trading plan.

That said, it's a real good approach to trading options and something I recommend all traders give a look. You can find a link to the Delta Options Trading Strategy within the ToolBox here at the GBE site.

Hey lcousino! Thanks for joining us from Portugal! Glad you're with us tonight.

I don't know about using the Extreme rating as a strategy as I've never done it before. I designed the Strong 1 as you find it on the site and that's my limit as far as using Trend Seeker in this fashion.

However, if it's something that interests you I encourage you to paper trade it and see how it works out. Then let me know your results down the road, I'd be interested in knowing what you learn.

Thanks for stopping by tonight.

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The charts of Cocoa are a mess in my opinion, superdave. As per my notes on the September chart, I wouldn't touch that market with a ten foot poll. I think there are better places to put our money than in this market. Frankly, it's psycho.

Why is Cocoa such a mess? Your guess is as good as mine.

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!

Between chats please stay in touch with me via both my blog and Twitter. You can read my blog by clicking here. And you can follow my Twitter posts (a.k.a. tweets) by clicking here.

Plan your trade and trade your plan!

My next chat will be on Tuesday, August 11, 2009. God Bless and I look forward to seeing you then!