Ken Roberts Chat

Let's Talk Trading (tm) with Ken Roberts
from April 9, 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 Cohiba Siglo V fired up, here’s our plate of freshly baked ginger snap cookies, the coffee’s poured, so let’s talk commodities!

Jim from Kalamazoo, MI asks:
Has Eurodollars hit the daily target? I am still pricing options and a June '03 92.75 looks cheap. What options do you suggest?

at 6:13:28 PM
Hello Jim. Eurodollars' front-month (June) daily target is 9635, so, no, it hasn't been hit yet. Its Weekly 50% target is 95.65. I'd shop for options with strikes closer to those target numbers. Thanks!

jeff b asks:
hello ken i just started paper trading and i was wondering about your opinion on crude oil

at 6:15:52 PM
Hello and welcome Jeff B. Crude oil just made its Weekly 50% retracement (to and past 27.25) and now its making a retracment back down. I'd wait for that to complete and then plan on going long again.

MoneyBags from Dawson Creek asks:
Hi Ken, I'm just sitting down to a nice fresh cup of coffee, and a nice colt cigar... Maybe later this year I will be able to afford those big fat cubans that you smoke...Here is to coffee!!!!!

at 6:16:52 PM
Right on, MoneyBags! Let's hope coffee keeps perkin' on up!

annjea asks:
Hi Ken: Need some advice and encouragement. Have a May corn future long at 219-1/4. Looks like it's going to be a loss but I did protect myself a bit with a 210 put option. Should I wait until the option expiry date or liquidate these contracts now. My broker said both contracts will be automatically liquidated at option expiry date and my account will be adjusted, and I don't have to do a thing. True? This is my first experience with this. I think I'm going back to paper trading for a while. Thanks, Annjea

at 6:19:06 PM
Glad you protected your position with that put, Annjea. You did fine. I'd just sit tight now and wait for that 4/27/02 expiry date on the option to get hit. And, yes, keep paper trading other markets every day.

Alan C. asks:
Ken, I had options order in for 2 Aug02 5200 calls @ 20pt on 1/9/2002. Over the next 2 months prices went below this and then rose but I was never filled. Does this happen & is there anything I could have done different?

at 6:20:55 PM
Yes, this does happen, Alan C. But when I find that an option's price is "cheap" and then bid half of that amount, I'm filled more than 80% of the time. So the message is, Don't chase option (or futures) prices just because you got burned once (so far!). Let the market come to you. Thanks for joining us tonight.

Sharpshooter asks:
Dear Ken, Thanks for the chat room, learning a lot. Question: Is there a rule of thumb for the number of contracts to trade according to your trading capital? Sharpshooter, from Milwaukee

at 6:22:06 PM
Call a Course Counselor for more details, Sharpshooter, but basically, plan on two rounds of options per market. That's how I budget.

FreelanceWizard asks:
from Indianapolis. You have said to ignore open interest and volume. do you mean for options only, or for futures contracts as well?

at 6:22:52 PM
Futures contracts as well!

bluerose asks:
Redding, CA Good evening Ken! Having looking forward to this chat. In the course book you expound in several chapters the beauty of pyramids which sounds wonderful, but last month you suggested one to pillaring instead of pyramiding what is your reason for that?

at 6:26:40 PM
It's safer, Bluerose. But you need to understand the power and workings of pyramiding. I'm not saying NOT to pyramid; I'm just saying that I don't pyramid. (Was just in Redding this past Saturday making one of my frequent In-in-Out Burger runs! Redding's is the closest to Grants Pass . . . .)

Philco asks:
Hi Ken, I have bought several rounds of options in the grains,in the past year, as well as coffee,and copper. Nothing seem to reach the daily 50%, much less the weekly. I know if I get out I lose. Do you see any light at the end of the tunnel? Is this an unusually long stretch of low prices? Thanks. Philco from Alberta Canada

at 6:28:03 PM
Yes, Philco, it does seems like this has been an exceptionally long stretch for prices to rise, but hang in there. Many markets have made their 50% retracements (just not the ones you're in --- yet!).

Juie asks:
Hi Ken! Would you give me some ideas on what types of things to use as tax deductions. Also, is the broker commisions tax deductible? Thanks alot!

at 6:32:29 PM
Julie, you've raised my all-time favorite topic in the world -- taxes! (But, no, I won't get started . . . .) "Check with your accountant" is the best I can offer. Thanks.

kc asks:
I know that coffee has been in the chats for sometime now. I paper traded coffee and would have made $5,231.00. Since I've only been doing this for 5 months or so I'm not that confident that I will do as well with real money. Words of encouragement would be appreciated.

at 6:33:22 PM
Keep paper trading, kc, until you're saying "I'm tired of being right and not making any money on it" a lot!

funnytraders asks:
dear ken,funnytraders from toronto just love your courses! thanks a million for showing the gateway to world's one perfect business!!! we're paper trading and doing just great! we're into coffeelong; silver long and lots of options too! just wanted to join you to say thanx!!!

at 6:33:54 PM
Thank YOU, funnytraders. Glad you're on board with us.

Bosstress asks:
Hi Ken, I think you're the best!!! I am at this very moment watching Tools of The Trade series, and I love it. I recently tried to enroll in your options alert line and was told that I had to buy a previous options course; however I have Tools of the Trade and TWMPMM 1 and your roundtable series. How much more is there to learn?

at 6:35:45 PM
Thanks, Bosstress! Aren't those videos great?! A Hollywood writer couldn't have written that script! All you need to learn is in your charts now.

Tre-Tre from Toronto, Ontario Canada asks:
Captain Kenny are you still long natural gas or did you sell everything and wait for later to get back in and go for the weekly/monthly level, thank you very much you da man.

at 6:37:09 PM
Thanks, Tre-Tre, and you're a genius! I'm long Natural and hanging on for the Weekly 50% retracement.

Eric in Fort Worth asks:
Thanks again Ken for these enjoyable & informative chats. When a trader is stopped out of a long position when the market pulls back (such as Soybeans recently), do you recommend buying back when the market touches the 50% level, or is it best to wait for a tradeable formation to develop? Thanks.

at 6:39:40 PM
This is why I don't like stops, Eric, and stress hedging with options so you can hang on through all the dips a market makes on its way to the 50% target. No, I wouldn't buy back in now unless the market makes new lows. Then start over. Thanks.

Joseph asks:
Do all brokers require you to sign a contract that requires a lein on all assets that you own?

at 6:41:08 PM
I can't answer for all brokers, Joseph, but consider this: If you trade options only, you can't lose more than what's in your account. Hope this helps.

DavidM asks:
Hi Ken, thank you for these chats. They're one of the best resources your company offers, in my opinion. I have a July 44 cotton call that I paid 70 points for. As of today, It lost some of it's value. I have an order for more calls but have not been filled yet. If not filled by early June or so, would you hold on until expiration or liquidate? This option has traded much higher but I'm not sure it will hold out for this round.

at 6:42:08 PM
I never liquidate an option early, DavidM, unless my target's been hit. And I always plan for at least two rounds.

trwtrader asks:
Ken, Are you still long in futures and options in cotton? I have 2 coffee options that will expire on 6/14/02. If there is no rally before then, what do I tell my broker I want to do if I want to purchase another round? Thanks.

at 6:43:11 PM
Yes, I'm still long cotton. I'd start pricing your second round of coffee calls now, trwtrader. They're relatively cheap. If you wait for a rally, that's too late. Good goin'....

nev-walt asks:
Ken, I bid $50 on an option quoted at $62.50. The price came down to 50, and then for 4 days it listed at 37.50. My broker said no trades were being made at that price. What is the problem? This happen often?? He said I should up my bid a couple points. It happened again in Sugar, the listed price fell below my bid. Has this happened to you? What would you do??

at 6:44:28 PM
Yes it's happened to me too, nev-walt. The fact is, an option must TRADE at a price below your bid before you'll get filled. Just stick to your plan.

N.C. Contrarian asks:
Ken, Is a WIDE channel like we see in may cotton since last Nov. more risky to trade than the narrow channels you tell about in your course? Thanks.

at 6:46:22 PM
Well, it depends, N.C. Contrarian. If you're trading options, it may or may not be. If you're trading futures, yes, it's probably more risky.

RICK asks:
KEN WHAT ABOUT EUROYEN WHICH MONTH ARE YOU IN THANKS

at 6:47:05 PM
Hi Rick. I'm in the September Euroyen now (and have been for some time).

Jim asks:
Hi Ken. I got two May Coffee options. When should I plan to buy the next round?

at 6:48:30 PM
About a month before expiration, Jim (which means you're way late, since May '02 Coffee options expire April 12th!).

j.mfromsunnyflorida asks:
jmsunnyflorida. Ken thanks for your patience with all our chat room questions. I'd like know what you mean when you say, "budget for 2 rounds of options? Do you mean for the same contract month or do you mean for two different expiring months?

at 6:50:13 PM
That's one of my "rules" in TWMPMM II, j.mfromsunnyflorida.

nicole asks:
Bussey,IA Hi Ya. Was wondering if you should hold on to one of yer options untill the 1st target or if liqudating at a "break even" point is also a good plan. Thanks. Not drinking Coffee now, too late in Iowa, but enjoying a sucker now and Coffee in options!!

at 6:52:10 PM
Hello, Nicole. Glad you logged on with us tonight. I always wait for the target to get hit. I never trade based on the amount of dollars made or lost.

FreelanceWizard asks:
Ken....I'm not a smoker, at least not anymore, but I do like a good cup of coffee. Re: figuring a 50%, I've heard various things mentioned: the last major move, a "pure" 50%, or just using the chart high and low. Which is the best way...............thanks.

at 6:53:01 PM
Pick the two points that give you the greatest 50% retracement target on any chart (daily, weekly, or monthly). That's how I do it!

HANK FROM PHILY asks:
JUST FINISHED YOUR TOOLS OF THE TRADE SET, great stuff... just GOT 2 SEPT. EURODOLLAR 9475 PUTS.AT 1 POINT EACH. LOOKING TO GO OUT TO THE NEXT MONTH A DO THE SAME (2 MORE) AT ABOUT 9500. eurodollars ARE UP AGAINST THE WALL WAY UP THERE ON THE TOP. puts, puts, puts....i THINK I GOT IT???

at 6:53:37 PM
Sounds like you do, Hank. Thanks!

ML asks:
Did you ever go through any difficult times with your trading when you first started?

at 6:54:37 PM
Yes. We all do, ML. But those who succeed hang on. (And this is true in ANY area of life.)

hendu asks:
Hello Ken, do you consider Rice in a sideways channel?

at 6:55:47 PM
Yes, hendu. It's short, but narrowing . . . .

Triple Nickle asks:
What do you think of the long term chart for wheat? Do you keep pouring in margin money to hang on to long contracts? Your chats are great! I look forward to them for reassurance when questioning oneself.

at 6:57:00 PM
Thanks, Triple Nickle. Yes, that's what I do

Howard from Austin Texas asks:
Ken, At times on your responses concerning a commodity that has gone way up in price like Oats or Crude Oil, you mentioned to wait until the price goes down and then go long again. Why would you not go short when it looks like it is starting to go down (like with a 123 top formation) ? How does Cocoa look to you ?

at 6:59:31 PM
You certainly can, Howard. And many traders do. Looks to me like Cocoa's making a retracement here on its way to making its Monthly 50% retracement.

Pete from Wales asks:
Good Evening Ken. (Morning for me) I am looking for a bit of advice concerning brokers, it appears that as a non US citizen if I use a US broker I will get hammered for tax, but I am having trouble finding a reasonable British Broker. Do You think I may be wise to continue looking for a UK Broker? Any experiences from other course members would be very helpful

at 7:00:25 PM
Thank you, Pete. Thanks for joining us this (morning)! Check out Dublin . . . .

bluerose asks:
Redding, CA Glad to know that you visited my neck of the woods. I too have also watched the course videos but I'm finding that the secret is becoming bonded with the charts. I keep looking for all the opportunities. Do I see wheat in a side way channel?

at 7:02:03 PM
Wheat's Weekly chart is in a large sideways channel, bluerose. But more importantly in my view is that wheat is at extremely low prices. That's why I'm long.

RONFROMALASKA asks:
KEN: THANKS FOR ALL THAT YOU DO! After much study I have concluded that long term position trading of extreme markets is for me. I am up several thousand dollars since Fall of 2001 and I am building positions in several markets. long Rice & cotton, short Euro's and loading up on Sugar. I am currently looking hard at hogs. 2 Questions: I like Dec hogs because they're 10 points closer to Zero than June hogs. (more time seems good too.)Anything wrong with this approach? AND Are you long Hogs? If so which month(s) and when did you get in?? Thanks again. Ron

at 7:04:28 PM
That approach seems sound to me, RONFROMALASKA. I'm not in Hogs at the moment (I'm short Live and Feeder Cattle.) Thanks!

irvin asks:
Ken, could you recommend a web site and/or TV channel that has commodity updates? Irvin

at 7:05:26 PM
You're asking the wrong man, irvin. (This chat is the ONLY time I've ever on the internet!). Check out U.S. Charts' website and see if that suits your needs. Thanks!

Trips22 asks:
Thanks Ken for all the help. Do you think May Lumbar is making 1 2 3 top now or is it still in a up trend. I am long and still holding and making some profit.

at 7:07:32 PM
As far as I'm concerned, Trips22, Lumber's made its up-move. I've taken profits and now waiting to see what it does next. Thanks!

sugarman asks:
HI KEN & GANG, THANKS FOR SHARING. HOW LONG ARE THESE ROUNDS OF OPTIONS YOU KEEP MENTIONING? THANKS AGAIN.

at 7:08:18 PM
(Check TWMPMM II, sugarman. It's just too much detail to explain during this chat. Thanks!)

kc asks:
Ken, I live in the heartland and the broker that I've been talking to has me apprehensive about investing in the commodities that I'm interested in. A couple of months ago I was prepared to get into my 1st trade, but was talked out of it because he told me to not try to get-rich-quick, just go with something that was trending and take my piece of the pie.

at 7:09:55 PM
Hello kc. YOU probably have more experience in commodities than your broker does. But even if you don't, do what YOU'RE comfortable with. This is probably the biggest "problem" traders have --- listening to their broker!

mrosner asks:
mrosner in Hollywood, Fl. Hi Ken. Your chats are the BEST! I am short 2 contracts in June'02 Euroyen and plan on rolling them over if targets are not hit. When is the best time to order the rollover and to what month do you suggest? Would greatly appreciate a reply.

at 7:11:23 PM
Hello, mrosner. Thank you! I "switch" my short futures contracts at least one week before LTD. And I'd roll as far out as your broker can fill your order.

DavidM asks:
Long live In-in-out Burger!!

at 7:11:44 PM
Right on, DavidM! Double-double!

surfkat asks:
ken, ive noticed on the coffee 5year chart ,when calculating the 50 % level the 320 high will be off the chart in 2 months. so do we recalculate the 50% level or do we stay with it since it hasnt been retraced?

at 7:12:51 PM
I'd stay with it (just back up to the Monthly coffee chart for the larget view). Thanks!

Ninja asks:
Hi ken I recently bought the advanced trading course and in it Ted Warren warns about shorting the markets due to high volatility. It appears that many times a market falls faster and would offer a great opportunity. Do you trade more long positions than short? Do you have some specific rules you use when going short? Thanks

at 7:14:37 PM
Good question/observations, Ninja. Yes, markets fall faster than they rise and, therfore, offer greater opportunities. But Ted Warren warned not to short a market because there's no limit to the upside, which means UNlimited risk. This is where puts can be so valuable.

Debbie asks:
What is going on in silver right now?

at 7:15:26 PM
Look at Silver's Monthly chart, Debbie. That's all I need to know (and it's why I'm long, long, long silver!)

nicole asks:
Iowa--just wondering how often you are "awake", and how you came up with the whole idea? Was it all yours?

at 7:17:19 PM
No, Nicole, not my "idea" at all! I'm not "awake" nearly enough. But that's what I work at. I recommend COSMIC CONSCIOUSNESS by Dr. Bucke (if not readily available to you, Four Star Books carries this book).

patient in PA asks:
Hi everyone, Ken, Besides coffee and eurodollars (which I am already in) what would you consider the most extreme markets at this time in looking to get into options?

at 7:17:48 PM
Euroyen and Silver. Thanks, patient in PA!

Jim from Kalamazoo, MI asks:
What is the most bizarre question someone has asked? By the way, how much rain have you gotten lately? looks like a lot.

at 7:19:27 PM
I'd say it was whether I wear boxers or briefs, Jim. I don't know how much rain we've gotten, but I believe we're up to, or just over, our norm. Thanks!

Debbie asks:
What is your tools of the trade course? Debbie in Milwaukee, WI

at 7:19:53 PM
It's GREAT, Debbie! Call a Course Counselor tomorrow (it's FREE too!).

alcast4 asks:
Your Course is great - which is the best red pen and ruler to use?

at 7:21:27 PM
Pentil Rolling Writer and the Wescot (metal) ruler.

Ellen asks:
Plummer, Idaho...Hi Ken, Thank you for all the wonderful opportunities you offer. I am utilizing your son's on-line chart service in addition to a fresh set of your charts every couple months. What a great combination! The on-line service serves as a double-check for my calculations ( much easier to read than my scribbles, too!) and has helped me figure out how the values of the different markets are figured. My question tonight is, when purchasing options and there are strikes available short of and beyond my target, and the beyonders are considerably cheaper...is it safe to purchase them but still liquidate when the market hits my target...(which would be short of the strike price on the option.) Thanks again....

at 7:23:25 PM
Thank YOU, Ellen. Couldn't have said all those things better myself! I think it's safe to go beyond your chart target with an option's strike price (but not TOO far --- different in every market). And realize that the futures price will likely never reach your strike price. That's a common misconception. Thanks again.

flyboy asks:
south of Deetroit. 6 options in coffee and 4 in cotton expire friday,round 2 is a little more conservative, but I'll be in the market. My very first trade provided $4000 profit on a $250.oo option in Gold. Everybody hang it there, this works. Thanx Ken for showing me how. Someday I'll flyboy to Grants Pass to see ya.

at 7:24:12 PM
Great, flyboy. Come on out! (Keep the greasy side down . . . .)

traderjen asks:
Hi Ken. Just a quick question about stops. It seems to me the markets fluctuate just enough to hit the values that you have recommended for stops. Do the floor traders do that just so the brokerages make their commissions? Sometimes I think it's safer to trade without telling them what your stop is. What do you think?

at 7:25:29 PM
I agree, traderjen. If your broker's willing and able, you can use "silent" stops which aren't actual orders; they're just points that you and your broker know and watch. Thanks!

Craig asks:
Hi Ken, when you "switch" do you go as far at as can be filled or is that just euroyen advice. i've been doing 2nd highest open interest. thanks

at 7:26:52 PM
This differs from market to market, Craig, and I have no hard-and-fast "rules" to offer. What your doing is just fine. But if you can squeek out some more time in certain markets, try it. Thanks!

mert asks:
Ken, What do you think about seasonal spreads.

at 7:27:10 PM
I don't.

Russ - Malibu asks:
I'm short 5 July hogs, 3 from 65.40 and 2 from 58.075. Needless to say we have some serious profit, over 13K. Per your trading style I've been running without stops. July hogs closed today at 55.875. The front month (April) 50% is 52.43, the recent weekly 50% is 53.65. The cash price today was 47.06 (over 5 cents higher than the April future!) It looks like I should have at least 2 cents to go for the weekly and more than 3 cents to April. First question: Would you throw in some stops now to protect part of the profit? Second question: What relationship is there between the cash price and the front month? Dude, I need your help!!

at 7:29:42 PM
You da man, Russ! I've always said that . . . . The relationship between cash and the front month is that cash and the front-month price HAVE to meet by Last Trading Day! I wouldn't throw in stops, but you do what's right for you. Thanks for joining us again.

Toody asks:
Ken, thanks for all you do for us. Would you consider it an opportune time to go short in Eurodollars, since it has made a 50% retracement of its move?

at 7:30:47 PM
Yes.

Tahoe Clay asks:
Hey Ken and Crew, Just wanted to share a paper and real trade experience: June '02 Nat Gas 5000 call options, I had a real money bid in for 5pts ea.($50ea)for a pair on 2/22/02. On 2/25 thru 2/28 the option hit that bid and below (4pts on 2/25 and 2/27: 3pts on 2/28)still no one sold me the options; BUT on Paper I got those two 5000 calls and then watched as they were worth $600 when the front month April hit its daily 50%!!! I liquidated one, and am holding out for the weekly (5005) to hit. Of course your course RULES! Here's to the Freedom you exposed me to!!Hip Hip Hooray!!!

at 7:31:41 PM
Thanks Tahoe Clay. You da man!

CottonBlue asks:
I am presently long July rice. When averaging down, do you have to buy the same contract month or can you buy the next month out which would be Sept.

at 7:32:22 PM
You can buy the next month out (or any other for that matter), CottonBlue. Go for time . . . .

trouter asks:
Hi Ken great stuff!trading for real, cocoa puts, coffee calls, bean oil, & sugar. Is this a good thing or am I casting in the wrong waters? thanks for the fun. trouter calgary

at 7:32:52 PM
Sounds like you're doing great to me, trouter. Fish on!

alpha asks:
Hi Ken &thanks for new opportunity(s)! I have been alert line paper trading for3-4 months. I've only touched on options and not comfortable yet. Should i pursue TWMPMM II or do paper t. with broker? Thank-you.

at 7:33:29 PM
If you can, do both, Alpha. Otherwise, just you and that set of charts is all you need.

jeff b asks:
when i start trading options should i start with one options contract or more, does it depend on my comfort level

at 7:34:32 PM
Comfort level AND budget, Jeff B. But try to start with at least two options so you can liquidate one at the 50% target and hold on to the other one for additional profits. Good question.

kmaj asks:
Ken, do you use gaps as objectives to price long positions?

at 7:34:49 PM
No, just 50% levels.

Ninja asks:
Hi ken, This response is to kc about brokers. I spoke with my broker about going long in coffee back in Feb. and he said that was foolish since coffee is in a "BEAR" market. We all know what coffee has done lately so like Ken says follow the charts and your plan. This is from the school of hard knocks!!!

at 7:36:36 PM
! (Thanks Ninja)

nicole asks:
Bussey, IA...WELL...What is it...BOXERS OR BRIEFS?!?! We are all wondering now!!!! :)

at 7:36:51 PM
!

dazl asks:
Hi Ken & gang, Dazl from Western Australia: Thanks very much for the chats! I love 'em! No questions just now....just a note to say thnx for the Tools of the Trade video series when I renewed my must-have-anyway US Charts. My wife & I had a ball watching those...best fun you can have watching the box. Cheers, Dazl. ps thanks also for the very excellent charts!

at 7:38:05 PM
You da man, Dazl. Thanks for logging on this evening.

rick in victoria asks:
Hi Ken I just want to say I've been a trader for about a year and a half and after trying all sorts of money making schemes I know that this is it.My biggest profit to date was a month ago when my 2 coffee calls earned me $3000.00 in one day. All thanx to you and your terrific course. I'm in for the long haul. Go coffee go!

at 7:38:32 PM
Right on, Rick. You da man!

Buck asks:
Ken, I thought you were speaking to me personally when you said "a man somewhere in Iowa" on the TWMPMM II video. I am currently long July bean oil. Should I replace my stop loss with 1600 put. Thanks for everything your doing!

at 7:39:22 PM
If you can, yes Buck. (And I WAS speaking of you on the TWMPMM II videos!) You da man, Buck!

Gypsy Woman asks:
A few YEARS (with a few detours along the way)into TWMPMM I, and now the Options Course and I've decided I am the quintessential contrarian, and cannot think of anything else that makes sense, gives me freedom, and $$ has always gotten my attention. Thanx for your sharing of this invaluable info. NOW. I have "several" Sept. 100 calls in Coffee and 4 Dec. 120 calls in Coffee, along with 2 Mar.03 750 calls in Sugar. I have made a bit now and then (in Euro$), but wasm on that 8 out of 10 trades losing streak, hoping to make-up in Coffee, and hit a good one. Your thoughts?

at 7:40:33 PM
Sounds like you're doing just fine, Gypsy Woman. Thanks!

green asks:
Ken, Thanks for your time and attention on these chats (not to mention your sense of humor)! I "listen" and learn as I work to rebuild my trading account. I've learned so much from you and continue to learn and appreciate other trader's input also.

at 7:41:42 PM
(Is it easy being GREEN?) Thank YOU for taking part. That's what's it's all about . . . .

Tahoe Clay asks:
Hey Ken and Crew, I just need to tell you that when I opened my trading account I sent a picture of myself (You know the one, the one with a little lamb in the crosshairs of a rifle), and I told him that is what I look like to him, and you know to this day, he has never offered me his bloody opinion of any trade I have made, He just answers my questions, and executes my orders.. It is GREAT...!! What's the weather like in June in Kens Pass?, Thinking of coming to your Birthday/Big Boardroom Bash I almost pulled out of May coffee when it hit 59.70 last week to pay for my tuiton, but I am holding on and rolling and will have to make the coin when it hits its 50% and then I can tell you the story....

at 7:43:55 PM
Thanks, Tahoe Clay. That't the first time I've ever heard of anyone doing that with the little lamb picture! Great idea! June is beautiful here (and I'm not just saying that). (Plus, you can't pump your own gasoline here --- it's illegal! Plus, we have NO sales tax!) Come on out and join my Birthday Bootcamp!

kc asks:
Ken, regarding options: I know that you have the right, but not the obligation to own a futures contract. Does this mean at anytime you can switch this option to a futures contract, and if so, do you ever switch?

at 7:45:24 PM
Yes, kc, at anytime you could EXERCISE your option for the underlying futures contract (but you probably wouldn't want to do that). No, I've never exercised an option (and can't come up with a reason to ever do so). Thanks! Good question.

hendu asks:
hey Ken, what made you do the cameo in "Radical Jack"? Were you cast for it?

at 7:46:31 PM
That part was created for me (and my big ego), hendu. Can't understand why, though, I wasn't nominated for an Oscar.

Ninja asks:
Hi Ken, The libor is in a very narrow channel and would you trade this market now with put options or wait for the breakout? What is a Libor anyway?! THANKS

at 7:48:56 PM
Yes, Ninja. That's a very narrow sideways channel. I'd price PUTS now. They'll get too expensive if you wait for a breakout. The Libor is London Interbank Offer Rate and it's much like our Fed Funds Rate, or the rate charged between banks. Thanks!

northboy asks:
If volumn and open interest are not important then why did you put them on your charts?? Great show ken!!

at 7:49:39 PM
Good question, Northboy. Because many subscribers are NOT Course Members and don't know what you do. Thanks!

patient in PA asks:
Hi Ken, Considering the time spent in shipping to PA, would you recommend a bi-weekly or weekly chart subscription? Now I only have on-line charts, but would really like to have paper ones.

at 7:52:00 PM
It's strictly personal, Patient in PA, but for me, I need these paper charts every week.

jerry asks:
Hi Ken, had a great time in Philly last year.In coffee the Dec. contract made it's 50% i know you say the front month is the driver,but do you think this may have some effect on the coffee market before it takes off? Thanks.

at 7:53:17 PM
Thanks, Jerry. I just watch that front month and am holding on for Coffee's Weekly target to get hit (and then maybe much more!).

nicole asks:
Bussey, IA Since you are in and watch soooo many markets, how much time do YOU spend a day/week figuring and such?

at 7:53:58 PM
15 - 20 minutes. Honest.

mary asks:
mary from Toronto,Ken, I'm taking sides with nicole and maybe some of the other girls on line tonight, is it BOXERS OR BRIEFS? (My husband is rolling with laugh).... sweet dreams girls!

at 7:54:22 PM
!

Ellen asks:
Idaho..Hi again, Ken...I found your TWMPMM II to be the kicker that gave me the understanding and confidence to get into options. As far as I'm concerned, they are the ONLY way to go...whether solo or as hedge for a contract. Thanks again!

at 7:55:00 PM
That's what's important, Ellen. YOU know what's right for YOU. Great goin'!

Shorts Changed in South Dakota asks:
Ken, doesn't trading with a "silent" stop require even more discipline than trading with an actually placed stop? Also, not to contradict you, but I've found that I make more money if I take profits a little before the 50% level.

at 7:56:08 PM
Yes, it probably does, South Dakota. And it's no contradiction: What works for YOU works for YOU. Thanks!

DavidM asks:
Ken, tell Jeff the online charts smell good too!

at 7:56:16 PM
!

RONFROMALASKA asks:
Ken: I am looking at Corn and at Wheat. Both are very low in the big picture. Would you favor 1 more than the other? I can not afford to be in more than 1 of the grains and I am leaning toward corn. I will not blindly follow your lead but I would be very interested in your opinion and reason. Thanks very much. Ron

at 7:58:05 PM
Okay, Ron. Here's what I'd do in your situation: I'd determine what "cheap" means for call options in both Corn and Wheat. Then I'd place orders for at least two calls in each of those markets. When one gets filled, I'd cancel the other. This way, the markets themselves told me what to trade. Thanks!

ML asks:
Ken, did you practice paper trading without stop loss before you started doing with real money?

at 8:00:55 PM
Yes.

nicole asks:
Good-bye everyone!! it is 10:00pm in IOWA, and I thank you for answering my curiousities tonight, but now it is late for me here even though I am 28yrs,( my 1 yr old keeps me hoppin and my 7 yr old keeps my brain a wizzin'), I am going to go spend some qualitiy time with my hubby, and get some good sleep, I can do all this cuz of the knowledge you have givin me I can sign out early cuz all I really need to know is in my charts!!!! Salutations Ken! Nik

at 8:01:50 PM
Great closing comment! Thanks!

Stephen asks:
Sorry is this live? :o)

at 8:02:08 PM
No, it's Memorex, Stephen.

jeff asks:
jeff c. MN Stopped your course in'99' ( got sidetracked on some 'METHOD' trading that became rather confusing) Anyway,ordered your stuff today cause I wanted updated version ofTWMPMM. Hope the basics are still in it. Thanks.

at 8:02:30 PM
Yes they are, Jeff. Welcome back!

Eric in Fort Worth asks:
Hi again, Ken. I remember you mentioned several months ago that you were long Natural Gas, which made a nice move. If you don't mind sharing it, I'd love to know what your profit was.

at 8:03:30 PM
Can't tell you yet, Eric. I'm still long and waiting for the 50% target to get hit. Thanks and stay tuned!

Dave asks:
HI KEN;considering buying your course. you sound like good people! my question is what's the minimum amount to open an account with a broker when I'm ready to trade?

at 8:04:44 PM
Hi, Dave. Call a Course Counselor tomorrow for the (long) answer to your question. But the short version is, for the price of one option (which can be as low as $6.25 plus commission and fees). Good night!

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. ; (new!) www.historictrees.org. My next chat will be Tuesday, May 14. Also remember Matt's stock and commodity chat Tuesday, May 28. And join Guy Finley's chat this Thursday 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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