Ken Roberts Chat

Let's Talk Trading (tm) with Ken Roberts
from January 8, 2002

As we begin this evening’s session, let me state the reason I conduct these monthly chats: to provide you the opportunity to ask questions and pick the brain of a successful, long-time, real-money trader. It’s not the highest and best use of our limited time here together for me to define basic terms and explain introductory principles taught in your TWMPMM Manual. That’s what my Course Counselors are here for... Now 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 along those lines, so much better. Alright... I’ve got a Cuban Cohiba fired up, here’s our plate of freshly baked ranger cookies, the coffee’s poured, so let’s talk commodities!

Auturo Fuente from Central Florida asks:
Hello Ken, I've got a nice Vanilla Coke and Cuban Partagas going on here. SMOOTH ! I've been trading quite a few options in various markets while waiting for the target Daily and Weekly points to be hit. My plan is to acquire more options and further out months, as the options I have go half of what I've paid. Does this sound good? Thanks for the chat. Arturo

at 5:49:29 PM
Yes, Auturo, as long as your budget can sustain it, that's a great plan. Nice combo -- vanilla coke and Cuban Partagas. (That would be illegal in the People's Republic of California!)

Alan C. asks:
what has been your most profitable trade of late?

at 5:50:11 PM
The rally in oats (which was actually awhile ago now).

Silver Sucker asks:
when is Silver going to take off ? :)

at 5:50:35 PM
Wait a minute, let me get my Tarot cards here . . . .

Leonardo asks:
I know you pyramid right side up, how often do you then pyramid invertedly or do you ever? Should we as course members pyramid invertedly as stated in your course?

at 5:51:52 PM
You should experiment by paper trading both methods and see which YOU prefer. Sorry, there's no right-or-wrong answer to your question . . . .

Plowboy asks:
1. Have you ever had a problem liquidating a option (put or call) with a way out of the money strike price, once the market has started to move?

at 5:52:31 PM
Never, Plowboy, never. There's ALWAYS been a buyer . . . .

silver bull asks:
Whatcha think Ken,,,, is this the start of silver run you dreamed of??

at 5:53:22 PM
Only time will tell (unless I can get these Tarot cards figured out), Silver Bull, but I'm there if it is!

porteno1 asks:
Hi Ken Porteno1 from Sherman Oaks Ca. I’m still a little confuse on how to use 1,2,3 tops or bottoms formations. I know the #1 point is the highest or the lowest in the last twelve months now my question is do you trade other (smaller) formations in between? And if so how do you determine the #1 point? Since it won’t be the highest or lowest in those twelve months? Thank you Ken for making me aware of the WORLD BEST BUSSINESS.

at 5:54:38 PM
Thanks, Porteno1. No, I don't trade "other (smaller) formations in between." Remember: There's ONLY ONE #1 point . . . .

pokerman asks:
Hi Ken! This is my first time to be able to log in on a live chat. Just wanted to say how much I enjoy the courses and thank you for all you do for us.

at 5:55:41 PM
Thanks, Pokerman! Glad you've joined us. (Did you know Bill Gates is an AVID poker player?)

Dean in Laguna Niguel asks:
Ken, quick question on Corn: It looks to me the volatility alone makes it a good option buy right now, even with a 300 - 320 strike. I can't go much beyond 6 months or so, or it gets too expensive. Does buying a July02 call make sense, or is that too short-term? Thx

at 5:58:00 PM
Yes, Dean, I believe you mean the LACK of volatility in corn now makes corn options attractive. And yes, July02 calls should be fine; just be prepared to budget for that second round . . . .

habs asks:
Ken, I've never rolled over from one month to the next. Just wondering if there is anything special to do especially when I have a loss? Thanks

at 6:00:10 PM
The only thing "special" to do is to tell your broker what you're doing ("Rolling out to a farther month"). S/He will then place a special order (actually called a "switch") order on the floor of the exchange indicating what you're doing. This helps avoid slippage from one month to the other. When you roll out, your profits/losses travel with the trade.

ML asks:
Hi Ken, if you were starting over again today and you were trading future contracts, would you hedge with options?

at 6:01:22 PM
Yes I would, ML. It's foolish NOT to use options today since they give you staying power that used to only be available to those with a lot of CASH. (They didn't have options when I started trading! Can't believe I'm that old now . . . .)

honoLULU on Trading asks:
First-timer in the chat. I have a 180 May Oat put opt. Is it reasonable to think that it will exceed that by the end of Jan? Mahalo from Hawaii.

at 6:02:03 PM
Mahalo, honoLULU! No one knows, but if you're in the market (as you are), you're RIGHT!

jim_nasium asks:
From Calgary, Alberta, Canada. Hi ken, I got a question about rolling over contracts. Are you ever worried about the spread between contract months? I imagine that you can't always roll over into the next month perfectly every time. Any tricks?

at 6:03:04 PM
No, no tricks, Jim. That profit/loss just travels along into your new contract.

Steve asks:
Good Evening, Ken! If you have reached the point of selling half your long contracts at the daily 50% level, then the market turns back down instead of continuing to the weekly 50% level, at what point would you start buying contracts again? And would your first buy be the same number of contracts you just sold?

at 6:04:10 PM
That's been happening A LOT lately (just browse a set of charts . . .). I begin buying more lightly when the old low is broken again.

prospector asks:
Hi Ken, Mike from Alaska again, do you reccommend using mini contracts if you can't afford a full size one? Or would you suggest saving up until you can afford a full size one?

at 6:05:32 PM
Hello, Prospector. Normally I'd say use mini contracts, but unfortunately they're on the way out now. I don't know the deadline, but trading in mini contracts will soon cease.

dave asks:
canton,ohio ken-- what do you think about cocoa

at 6:07:02 PM
I'm so glad I'm long! And waiting for 1975 on its monthly chart . . . .

Dean in Laguna Niguel asks:
By the way Ken, this may be the Peoples' Republic, but it was 70 degrees and sunny at the beach today! There's a reason we endure the liberal wackiness!

at 6:08:19 PM
Yes, Dean, but tell me: What was the QUALITY of the air and water at the beach today? (And how many lefties did you have to associate with . . . ?)

superdave asks:
hi ken! dave here from west virginia. want to say thanks, i turned $800 into $8600 last yesar in euro$ . helped pay for the downpayment for my home and our wedding. also bought a sugar call option 2 years ago and turned it into $2400. IVE READ EVERYTHING IVE GOTTEN FROM YOU AND WATCHED THE VIDEOS so much that i feel i personally know you. i will be out to visit you one day.

at 6:09:22 PM
Thanks, Superdave! Yes, come on out and see us in beautiful Southern Oregon!

BrianB asks:
Ken, What month are you buying options for coffee now? If it's December how much are you paying or what's your bid and what is your strike price? ALso, I'm looking at July calls for soybeans for around 2cents - how does this sound? Have you ever seen markets either so low or so high??

at 6:11:53 PM
Hello, BrianB. No, I've never seen such extreme markets as we have lately. I'm looking for December02 150 coffee calls. And at the risk of you front-running me, I'll reveal that my bid is at 55 points. Those July bean calls seem a bit close now, so I'd look at and price at least the September calls. Thanks!

Ariel asks:
Hi Ken: I am a new student. You are my GURU.. I'm totally dedicated to TWMPMM's words of wisdom. I have made some money in the past 4 mos. But have an urgent question I'm sure others are asking at this point.. I HAVE Rice 6.20 call option, a cotton 54 call option and Oats 150 Put option. two of each and all due in March 2002. As my budget is limited I can only buy 2 "further out" options on one commodity. Which one do you think will make a significant move by June/July 2002? Thanking you in advance for your guidance.

at 6:13:09 PM
Hello, Ariel, and welcome. No one knows the answer to the question you ask. So unless you're better than I am at these Tarot cards, pick one market and stick with it!

Hickory asks:
Hickory from Central Florida Hi Ken, Whats the deal with Eurodollar ? I've been in it with puts for quite awhile now and still have a March & June put. Do you have a position in Eurodollar?

at 6:13:43 PM
Sure do, Hickory. Like you, I'm short (and also waiting) . . . .

Steven asks:
Ken, when trading a level one market and it has made a move through the 50% daily. Is it wise to enter a trade based on the premis that a level one is going to shoot for level four?

at 6:14:20 PM
That's what I do, Steven, because my charts (and price history) tell me so.

esoterick asks:
Ken, Thank you for introducing me to commodities and also Vernon Howard. I'm not successful at trading yet, but my psychological studies (A Rich Man's Secret) are paying off and I'm making progress. With your resources and wish to teach, I am wondering if you have considered making "A Rich Man's Secret" into a movie in which you would star? It is a great story and would have to be more popular than "Radical Jack". Besides, that Billy Ray guy hogged all your screen time. I hope to meet you some day.

at 6:16:12 PM
Yea, did you notice how Billy Ray did that too?! Thanks, I'd love for ARMS to be made into a movie. (Know any producers looking for a good story?)

Mans World asks:
Ken. Paper trading coffee. I figured a 50% from the 97 high which has not had a 50% retracement yet. Am I figuring to far out? Bought March 165 calls for $3.75. Ok?

at 6:17:46 PM
No, that's perfect figuring, Mans World. Sounds like you're doing great. (Just don't let those March calls expire without having more behind them . . . .)

Silver Sucker asks:
Do you smell anything fishy in the Gold market ? There is a suite pending in federal court in Massachusetts that the large bullion banks have been conspiring to depress the price of Gold. Have you noticed as I have that the chart for gold has been acting very strange the past 2 or 3 years ?

at 6:18:46 PM
Yes I have, Silver Sucker. And I've heard of those conspiracy issues too. But I'm just sitting here, long gold . . . .

habs asks:
Ken, have you ever bought a commodity simply because it looked cheap.( i.e. @ 20 year lows ) And held on till the eventual rise no matter how long that was ? Thanks

at 6:19:09 PM
Yes I have (and do), habs.

TONY asks:
TONY ASKS DO U EVER PUT A SPREAD ON A FUTURES POSITION TO CATCH A TREND THEN GET OUT OF THE SPREAD?

at 6:19:40 PM
No, Tony. I never trade a spread.

Edsell asks:
Ken, I'm in options, Euro options. How do you feel about the interest rate going up???

at 6:20:08 PM
Well, it pretty much can only go up from here. So I'm short Euros . . . .

HighLow asks:
I just want to say that I have lived the saying, "Nobody Knows What You Think They Know." I was doing reasonably well in my first trades so I thought I'd hurry it along and put more cash in my account. That's when I listened to my broker and I had to put in over double of what I put in to stay in the other markets. I should have listened to you Ken! Smaller versions of the same mistake has happened subsequently. When will I learn?

at 6:21:22 PM
You ARE learning, HighLow! Thanks for sharing this lesson with us.

lance asks:
Hello Ken, Lance from B.C. Canada here. I studied your courses and started paper trading December 1st. I am over $5500.00. sure wish I had used real money. Thanks for the knowledge.

at 6:22:03 PM
That's the point, Lance: It isn't wasted because you gained knowledge . . . .

Patient&Persistant asks:
Hi ken, I have been paper trading for about 2 years I have had a lot of success, almost 90% on paper, and I am tired of watching myself only making money without spending it :). I have done two trades so far. One was a while back with corn (no success), and now with coffee. I have a may call option on it with a strike price of 90 (paid $ 450). I know sooner or later coffee will take off. I like to know your opinion about coffee ?

at 6:23:04 PM
I'm long and holding on and know, like you, that "sooner or later coffee will take off"! Hang in there.

Ninja asks:
HAPPY NEW YEAR! Ken with your vast experience trading the markets, what would be your best markets for option plays today? Thanks for conducting these chats.

at 6:23:53 PM
Thank you, Ninja. And yes, Happy New Year everyone! In two words: the cheapest.

moose asks:
Mendota,Illinois, Hello Ken. Went to your boardroom in Chicago, Nov. of 99", and loved it, esp. the opening joke about the Pope driving his own Limo and the Chi' town Cop, learned alot of great stuff too, esp. who am I, why am I here, and where are the COOKIES! Any more trips to Chi' town coming up? Also, Ken, when you get into a market with options, do you wait until the 50% target has been hit, or whenever you see a good profit before you liquidate your options? Also, Illinois Lawyers that skydive are also called skeet,....small world huh!

at 6:26:01 PM
Thanks Moose! No, no trips planned to Chicago, but you never know (maybe Oprah will be calling me soon??????) . . . . Yes, I ALWAYS wait for the 50% target, even if those options expire in the meantime. I've found that that strategy pays off best.

money asks:
Ken what do you think of march oats and how many contracts are you short? Also what do you think of march cotton, it just broke above the channel and how many contracts are you long in cotton?

at 6:28:05 PM
I'm out of oats, Money. Took my (big) profits and am waiting for another opportunity to develop. I'm long cotton and waiting. (I actually can't remember exactly how many contracts I have.)

24 asks:
Ken, is there a limit as too how deep out of the money you will buy options? For instance, are 150 calls on july coffee too far out for that time frame?

at 6:29:12 PM
Not at all, 24 (which is a very good show on the FOX Network). I go out to the weekly 50% target as my strike. But I'd be (and am) pricing December coffee calls right now (go for the time). Thanks!

Mike H asks:
Hi Ken, If your starting with a limited income, what's the best stradegy: options or futures

at 6:30:06 PM
Honestly, Mike H. There's no right or wrong answer to your question. YOU must determine which is better for YOU. Please try paper trading both methods and see which light bulb goes on in your head!

littile texas asks:
Ken, Will you ever include any other indicators in your online charting system? Indictors like MACD,RSI,%D,%K?

at 6:31:01 PM
Hello Littile Texas. Watch my Paper Trading Video and see if you can guess what my answer to this will be . . . .

MadMaqs asks:
Hi Ken, thanks for everything you're doing! I made my first trade in March Bean Oil after it had made it above the #2 and then dipped back down. I got in on Nov 15 @ 16.39 hedging with a 1600 put. It went up to 17.01 before it started it's downward spiral. On Dec 11th I bought another future @ 16.11 hedging with a 1550 put. That's the day it started the big dive losing about 51 points. Glad I had those puts. They kept me solvent when I'd have otherwise crapped out. I really was doubting my sanity about buying another future while it was steadily dropping, but now it's gone from a low of 15.23 to 16.47 in 6 days. I'm keeping my fingers crossed that it keeps heading for the daily 50% that I'd originally charted when I first bought. I wouldn't have thought to buy again while the market was moving against me except that I remember you covering that in one of your videos I have. Keep up the good work... Many thanks.

at 6:32:32 PM
Thanks, MadMaqs! No, YOU keep up the good work! GREAT trading!

bryan k. asks:
BK from Michigan Hi Ken, been watching cotton and coffee for some time. How can I position myself on either one on a limited budget? I have long options on each but afraid I will run our of time.

at 6:35:10 PM
That being your situation, Bryan K., all I can say is hang on and hope that one (or both) these markets take off SOON (and cotton's trying -- along with copper and cocoa. Hmmmmm, maybe the C markets are all taking off . . . .)

ann asks:
Hi Ken: Just wanted to say how much I've learned since starting your courses last Mar. They've helped my self-confidence a lot because I'm learning to master something so totally new and different. I'm fast approaching 60 and the courses are keeping my brain cells young! My only real trading has been 2 May cotton calls at a 48 strike and 2 May coffee calls at 135 strike purchased last October. I liked your book a lot. Would love a 'good tip' for tonight. Ann from Canada (not far from Niagara Falls)

at 6:37:17 PM
Hello, Ann, welcome and thank you. Yes, just learned a GREAT tip from Guy Finley at his class last night. He explained that NOTHING in nature ever waits. Only humans wait. And that causes pain and anxiety. So the tip is, Don't wait -- meditate!

The Jack of Trades asks:
Union City, GA--Hello, Ken; thanks for telling people the truth!! I have a question: I read recently that "As go the oats, so go the grains." Have you found this to be true over the years, or is this another subtle form of the dreaded "fundamentalist talk"?

at 6:38:53 PM
Actually, Jack of Trades, I've found the OPPOSITE to be true -- that oats typically follow the other grains. But even this (a personal feeling) is nothing to trade by. Only believe your charts. Thanks.

lizap asks:
Liz from MI, Hi Ken, how important is paying attention to volume and open interest when you are trading?

at 6:39:11 PM
I ignore both at all times.

hubby asks:
hi ken hubby from indiana i got 10 ea 86.00 calls on copper, waiting for the 75 daily sound right? thanks

at 6:40:57 PM
Hello, hubby. I get 7275 on the front month (March) copper chart and 91 on its weekly chart. Thanks!

kuzie asks:
Ken: My paper trading account is doing great. But my real account is doing -- marginally. I tend to bail too early when real money is involved. For example, I tripled my money in call options on oats, but it kept going up -- and I was out of the market. The same thing happened with lumber and beal oil. My attitude is a little less conservative with my paper trading account. I think I'll finally benefit. I have open postions in cotton, coffee, rice and oats (puts). Kuzie

at 6:42:28 PM
You're doing great, Kuzie. Those paper trading lessons you're gaining will slowly creep into your real trading and you'll eventually trade real money as fluidly as you now trade on paper. Keep going and stay in touch. Thanks!

plumberboy asks:
With Coffee at all time lows, do you ever think that some times, it will never, ever take off?

at 6:43:08 PM
It may seem like a long, long time in coming, but I've traded long enough now to know that nothing never takes off!

Little D asks:
Does paper trading really help? There's no "PANIC" that a real trade can cause! So what's the purposes?

at 6:43:51 PM
Good question, Little D. Please see previous question . . . .

CRAIG asks:
HI KEN, MY BROKER CALLED TODAY AFTER I PUT IN A ORDER TO GO LONG 4 MORE MAY COFFEE, HE SAID ALL THE TREND LINES SAY COFFEE IS HEADING INTO A BIG BEAR MARKET. IS THAT NOT WHAT IT'S IN ? I SAID I BUY LOW SELL HIGH AND HE LAUGHED.

at 6:44:49 PM
Yes, Craig, and YOU'LL be laughing all the way to the bank! If coffee's not in a "big bear market" now, I don't know what a bear market is . . . . You're doing great.

Howard from Austin Texas asks:
Ken, at times I have problems staying focused on commodity trading with a full time job and family. I really like the trading, just not enough time for it. I also get down (like a lot of people) if the markets go the wrong way or do nothing over a long period of time. Any recommendations on how to stay in a better frame of mind ?

at 6:46:01 PM
Work at commodities 15 minutes a day -- every day. Real trading or paper trading. Just stay with it. If you lose touch, you're out of touch! Stay with it. Glad you asked this this evening.

Tracy in Vail asks:
Hey Ken, how is that cigar? I just received your course and I have been studying hard and also I have a quick question. Do you trade about the same number of option contracts as you do futures?

at 6:47:16 PM
Good question(s) Tracy in Vail. The cigar's great and, come to think of it, I typically trade fewer options than futures contracts.

drukmo asks:
from boulder, co i entered my first trade 2/01 with 4 corn calls and lost $568.56. now i am working to get more $$$ into my account for another trading round. i am having trouble breaking through mental obstacles to seeing this as a business. what do you recommend?

at 6:47:59 PM
Go back to paper trading, Drukmo, until the markets prove themselves profitable to you. But don't quit.

alden asks:
Ken do you take your profits out of your account or just let it continue to grow?

at 6:48:16 PM
Continue to grow.

GC asks:
Ken, I bought TWMPMM in 1999. Today I am a profitable commodities trader. Thanks. What is the best time of year to vacation in Oregon ? I live on the steamy, Alabama gulf coast.

at 6:50:10 PM
Yes, I know that Alabama coast, GC! ANYtime is the right time to visit Oregon (but Spring's especially gorgeous y'all!)

CRAIG asks:
HI KEN FROM SNO-HIO, WHEN WILL YOU START UP BOARDROOM SEMINARS UP 15K LAST 7WEEKS.

at 6:50:46 PM
Way to go, Craig! Keep watching that calendar in the Newsletters and Charts . . . .

lgt35 asks:
Ken, do you feel it is right that i have to make a cash deposit ($2400+)with a broker before he'll give me qoates paper trading?

at 6:51:36 PM
As long as that broker can't talk you into doing anything you don't want to do, it's okay.

drew from ga. asks:
ken are you in crude call options,im in at a may 3900 strike.

at 6:52:46 PM
I have no crude calls, Drew, but I'm long futures. Hang in there!

Oddjob asks:
Oddjob from Mass. Happy New Year to you, your family and the people at the Ken Robert's Company. I have been trading commodities for less than two years now using your methods. Copper made a good "leap" up Monday and a small set back today. In one of your videos, you mentioned copper can be a "wild" market, is this the type of action you meant? I currently hold one 82 strike March copper call option and one 84 strike May copper call option. Go Copper Go!!!! Thank you for answering my question.

at 6:53:46 PM
Yes, Oddjob, copper's price action this week is what "wild" looks like!

David From Ky. asks:
David from Ky. I enjoy your chat room . I have options in several markets i am still waiting for them to move .

at 6:54:17 PM
That's perfect, David. Wait (and watch) on!

Preacherman asks:
Hi Ken, I'm getting back into trading (strictly options) after being out since '96. My first trade was Swiss Francs -- I made a $3,000 profit on the fifth day after getting in! But then I started checking out some other "experts." I thought I'd try their methods -- maybe I could catch some moves your method wasn't touching. They really messed me up & I gave up. I'm back in now with ACTT & the Advanced Options Boardroom. I'm already into Coffee, Beans & Cotton. Keeping an eye on Euro Dollar & Canadian Dollar. Rice & EuroYen don't have months far out enough for a good trade. What do you do then? Do you make some bids or just wait?

at 6:55:43 PM
I'll still bid, Preacherman, since that's the farthest out contract available (even though it's not THAT far out!). Good goin'!

Ninja asks:
Ken, I know you teach and preach to only trade by the charts, but do you discuss any news,fundamentals or commercial activity with your broker? If so does this affect your trading decisions?

at 6:57:23 PM
You know, Ninja, this is a good question. When a market takes off (as cocoa did recently), I'll say to my broker "And what stupid news is circulating as to why this market took off?" But the point is, I was already in the market, knowing the takeoff WOULD occur.

Toody asks:
Since march wheat went through the resistance point of 300, do you think that this is the start of the rally toward the weekly 50%? It almost hit 309.5 (daily 50%) and then backed off. I am holding 2 May 420 calls and don't know if I should liquidate one at a loss, or wait for it to go higher for the weekly?

at 7:00:39 PM
If it were me, I'd wait, Toody. And that's the truth. No one knows if this is the beginning of Wheat's really toward the weekly 50% . . . .

JamieM asks:
Hi Ken. When looking at purchasing a futures contract, is there any reason why it would not be OK to purchase a month other than the front month to give more time for a move to happen? Say a Mar. '02 or later?

at 7:01:49 PM
That would be a great plan, JamieM. I NEVER purchase the front-month contract, but I ALWAYS watch the front-month contract chart to make my trading decisions by. Thanks . . . .

flmac asks:
I wish someone would stop throwing cats off the empire state building. I'm getting tired of looking at these dead cat bounces in coffee. I would like to retire in a couple of years, provided coffee moves in that time to give me additional funds to work with.

at 7:02:27 PM
And it certainly can, flmac! Hang in there . . . .

Russ - Malibu asks:
Ken: In November I purchased 4 March Silver 450 opptions. I also went long on 4 futures from 420. My March target of 442.25 was hit so I sold off 2 of the futures for a nice profit. My second target (Dec 50%) of 453 was hit and I got out of the other 2 futures. I also got out of 2 of the 450 options. Im still holding the last 2 options looking for the 563 weekly. I'm thinking of getting back into futures as well because again as it seems to keep moving upward. What do you think? Is this major greed or just nuts?

at 7:03:43 PM
No, Russ, buying back in on 50% retracements is a great method. You da man!

dodge asks:
I really like Ted Warren's book. Thanks for making it available. Do you see the markets (stocks and commodities) as being manipulated by whomever, more or less prevalent these days, as Ted believed they were in his time.

at 7:04:52 PM
There's nothing new under the sun, Dodge. Thanks for joining us this evening.

junie asks:
Hi Ken, It's 15 degrees here in northwest PA tonight. Even though I have yet to make money, I still love the business. It's the one thing in my life that is just mine. I have 2 May coffee call options and 4 Sept Eurodollar puts. Sure hope (like everyone else) that things get moving soon. Thanks for being there for us!!!

at 7:06:01 PM
They will, Junie, and you'll be there when they do! Thanks for joining us tonight (and stay warm up there in PA).

JamieM asks:
Hi Ken. It's encouraging hearing that traders are doing well. However, I have been losing money with coffee options since last Dec when I started purchasing options. May expired with a loss of $450; Jul expired with a loss of $1200; Sep expired with a loss of $900; and I'm down about $500 with Mar '02 options. I want to purchase more to stay in, but I feel like I'm doing something wrong. :( Any suggestions?

at 7:06:51 PM
Go for the time, JamieM, and price those options until you know they're cheap . . . .

hendu asks:
Ken, I started out with your mailer intended for my dad. I've been trading commodities for 11 months now with real $$ and just now getting the hang of what's REALLY going on. I just completed the Ted Warren course, I'm trading stocks very lightly and light bulbs are going off in my head everyday with regularity helping me with my commodities trading. I can't seem to get enough of what you offer. I've read your novel twice now and I NOW KNOW what it means when you say..."take the 1st step, no more, no less, and the next will be revealed". Thanks a million Ken!

at 7:07:50 PM
Yes, Hendu, but have you seen my movie, RADICAL JACK?

Ruder asks:
Ken HELP! Ruder in the not so snowy state of WI. I need the advice of a financial expert(a succesful one.) I'm 22 and need to move out. Should I get a cheap apartment and plug all I can into an OPIP in these extreme markets, or phase out my trading and invest in some thing like a duplex instead? I'm assuming an OPIP will pay off more in the long term

at 7:08:50 PM
Absolutely, Ruder, absolutely . . . .

Adam asks:
Hello Ken, Canadian Dollars are at the all time lows. It is hard to get options to far out. Would you trade futures or would you stay with the best options you can get even though they might not be out to far? Thanks,

at 7:11:19 PM
That's correct, Adam. Currency options are not available too far out. So I just purchase those options as far out as possible and plan to do so more often than in most other markets. I remember those 1,2,3, and 4-point calls in the Canadian Dollar that turned into 20, 30, and 40 points!

Patient&Persistant asks:
Hi ken, I started my account with litle balance so far I am doing good what I would like to know is, which market I can trade that will make my balance grow faster than if I traded the other market? Of course following the course guidelines.

at 7:12:05 PM
(Now where did I put those Tarot cards?)

woody asks:
Hi ken, I have 3 options in May coffee at a 170 strike still watching july ,but they are still too expensive for my budget.I think that by the time they are cheap enough my May's will be ready for expiration.I hate getting stuck with only one option when the market takes off.Canadian dollar keeps falling making it so expensive for me to keep up. Is this a pipe dream ? should I switch to a more affordable market ? like gold? thanks for your precious time.

at 7:13:35 PM
I don't know your budget, Woody, but my hunch is that you should stick with the Canadian Dollar calls and plan on THREE rounds . . . . See how that pencils out.

hendu asks:
Ken, do you even trade the indices anymore...i.e. VLM? Just wondering.

at 7:13:55 PM
Oh, yes, hendu.

jemltd asks:
Ken, I'm a little confused at my broker's insistence that since I have a small account, I should be concentrating my trading in the options, rather than the futures. I am more comfortable in the futures, and I only paper trade the options until I understand how it is to take the profit that I get. Any suggestions? Do I go to options as my broker suggests?

at 7:15:13 PM
Well you must know what you're getting into, jemltd, so I'll have to say to pause and paper trade. Never get into something you're not comfortable with.

Ruxpin asks:
Ken, I recently purchased two books from 4Star, In Search of the Miraculous and Something you must know- Clement Watts. I really enjoyed a Rich Man's Secret, and still to this day continue to Watch My Thoughts. It helps me stop being paranoid about things.. Any special comments about these other two books? Thanks for all tyhat you do...Ruxpin

at 7:16:16 PM
Thank YOU, Ruxpin. Take In Search of ... very slowly and take Something You Should Know to heart (and it will pay off manyfold . . . .)

Sorry -- took a quick (unexpected) break, but I'm back now . . . .

sats asks:
I view a euro yen short contract as a very limited risk and a very good short position potential. And how about you our Guru?

at 7:27:02 PM
I have shorted more EuroYen futures contracts than I have any other market. Thanks, Sats!

cb asks:
Hey Ken! Do you see what I see? Please tell me you see a #2 forming in March Corn? What do you think?

at 7:27:36 PM
Me too, CB. (You make great movies!)

ML asks:
In your strategy for hedging futures contracts with options, what do you do with option if the futures contract takes off?

at 7:29:32 PM
Just hang onto it, and sometimes the option will generate a profit when the futures market retraces! (Just depends upon timing, which no one knows . . . .)

Todd asks:
Todd from L.A. - Ken, do you ever buy options on any of the indexes?

at 7:30:26 PM
Yes I do, but not very often. They tend to not become cheap like most other markets do.

Stan the man asks:
Stan from MO-Long Coffee and Cocoa (who isn't). Paper trading crude, unl. gas, silver, lumber & oats. Sounds like I went the wrong way on cocoa. As you see my paper trades seem to be going ok, but my money trades are pretty dismal. Lost more than I like to think about. Why are my paper trades successful, and money trades are not? Pretty discouraged at this point.

at 7:32:44 PM
Because of emotion, Stan the Man, and nothing more. That's why I recommend all the resources at Four Star Books. All the money in the world will not make up for a misunderstood mind . . . .

Ruder asks:
Ken, I logged on to the chats late so i'm behind. Any way I just read plumberboy's question @6:43 (I'm a plumber too in WI) and let me say that in the last 2 yrs. If I would have stuck with the markets that I got sick of waiting for both in futures in options I would be pretty close to retiring and my 5 yr reunion is next summer. I'm remembering the song "have patience" from sunday school right now....

at 7:33:46 PM
Good for you, Ruder. Thanks . . . .

richman asks:
Ken I have been trading commodities for 18 months now and the light finally came on. In my options trading, I have not been going out far enough in time but now it is all very clear. I have a Mar silver call, May coffee call, and a Sep eurodollar call and I'm looking at buying Dec silver calls, Dec coffee calls, and Dec eurodollar calls. I broke through mentally and I just know that we won't have to wait too much longer for BIG profits!! Thank you so much.

at 7:34:24 PM
Thank YOU, Richman.

tymo asks:
Hi Ken, Tymo again from Co. Is anyone watching the sugar market besides me? Those Oct. call/opts look mighty tempting, any thoughts? Thanks Ken for all your help.

at 7:35:27 PM
Looks good to me too, Tymo. Watch on!

Russ - Malibu asks:
Dude, I can't tell you how happy I am to still be da man.

at 7:35:55 PM
And you still are, Russ! Surf's up . . . .

George asks:
Ken : I have been fortunate enough to meet you and follow the live chats since you started them. I think your spelling is flawless; is that the secret of your success at trading? I admire both!

at 7:37:05 PM
Yess it es, George. Speling reely paze off in tradeing to . . . .

Trader Pete asks:
I know you've explained it before but, please do it once more re: When hedging a contract W/an option, which is acquired first the option or the contract? thanks

at 7:37:54 PM
Always put your insurance on first, Trader Pete. So that means to purchase the hedging option before the contract.

littile texas asks:
Ken How do You Know when options become cheap? What is a cheap price, $200 or less?

at 7:38:50 PM
That answer is different in every market. Either 1) Price the options in any market for at least two weeks, or 2) Log on to U.S. Charts' Options Price History feature and catch up quickly.

John from Raleigh asks:
Hey Ken, John from NC,(the right coast), I received the Workshop Videos over the holidays and have really enjoyed them it was like getting a boost over a hurdle. Thanks for the EXCELLENT info.

at 7:39:25 PM
Thank YOU, John. (signed) Ken (from the Left Coast)

Oddjob asks:
Oddjob from Mass. Ken, looking at my charts, i noticed unleaded gas and heating oil almost look the same in their formations. My question is this typical or not? Thank you and have a great evening.

at 7:40:03 PM
Yes, Oddjob, I'd say that's a frequent occurrence in the energies.

I get it! asks:
Do you still have the same broker that you had and was present at the Chicago Board meeting the last time you were there?

at 7:40:17 PM
Yes.

Silver Sucker asks:
Ken, This isn't a question but I just wanted to thank you for your courses. I've been actively trading your options statagy for about nine months now and was able to turn a $2500 dollar account into just short of $10,000. The system really does work and you are right about the hardest thing to do is to know when to take profits...thanks again.....GO SILVER

at 7:40:48 PM
Couldn't have said it better myself, Silver Sucker. Thanks!

Mans World asks:
Man's World says course is fantastic. Beyond my expectations. Now have my son taking your courses as well. While only paper trading I am very excited and confident. Forceing myself to paper trade for a while yet. Thankyou Ken.

at 7:41:08 PM
Your son has a very wise father . . . .

Hickory asks:
Hickory Ken I was always afraid of Commodities before your course but Did not know anything about them. Thanks for the education.I Paper traded a lot and did well but when I opened a real account I have not made a profit yet and am watching my account go down but I Am not giving up just trying to figure what I Done wrong.

at 7:41:42 PM
Don't quit, Hickory. And never be afraid to pause and paper trade at any time.

bigjohn asks:
ken, areyou in unleaded gas and crude oil?looks good to go long!

at 7:42:32 PM
I'd say!

habs asks:
Ken. just wanted to say thanks for getting Ted Warren's book out to the public. I've read it countless times and I think I've gone through the exact same trading experiences as him so far, minus the profit, but I seem to be the type to have to make a mistake before I can learn for it, instead of learning from his! Has he written anything else? Thanks

at 7:43:26 PM
I don't think so, habs, but aren't you glad he did write HTMTSMMMFY ?!

bigjohn asks:
ken, i pesonally have found out that with a limited budget options are the best bet. because, you have staying power!! and that makes all the difference in the world!!

at 7:43:54 PM
!

kuzie asks:
Ken: I've been taking your courses for two years and have been trading real money since January, 2001. When I check your Alert-Lins, everything you are doing simply AFFIRMS the decisions I've already made. Thanks for all your help.

at 7:44:26 PM
That's what they're for, Kuzie. Thanks for logging on tonight!

Auturo Fuente from Central Florida asks:
Hi Ken. I read your messege that stated you were sill long cocoa waiting for the monthly to be hit. I'm currently pretty heavy in Put options, waiting for the move down to 11. Half of what cocoa just did. Have I made a mistake? Arturo

at 7:45:40 PM
Not at all, Auturo. We both will be right -- it's just a matter of timing. Isn't that great?!

Well that's it for another month. Here are my favorite web sites if you're interested: www.guyfinley.com ; www.LP.org ; www.uschartco.com ; www.fourstarbooks.com. My next chat will be Tuesday, February 12. Also remember Matt's stock and commodity chats. And join Guy Finley's monthly chats the first Thursday of every month at 6:30 PM Pacific Time. (And visit his site at any time to read inspiring quotes and sign up to receive a free spirit-lifting weekly Key Lesson by e-mail.) As always: Use these newfound powers only for Good. Good night!

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