Ken Roberts Chat

Let's Talk Trading (tm) with Ken Roberts
from July 8, 2003

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 Course materials. 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 Partagas 150 fired up, here’s our plate of freshly baked peanut butter cookies, the coffee’s poured, so let’s talk commodities!

Krispy Kreme asks:
Hi Ken, David from Houston - When I'm figuring the daily contract 50%, I've seen front months that were less than a year long and front months that were over a year long. How do you set your 50% levels when these two examples occur? I'm keeping the big picture in mind (weekly, monthly), but the daily 50% has me confused.

at 6:05:55 PM
Hello Krispy Kreme. I simply use what's on the chart, whether it's less than a year, exactly one year, or more than a year. As long as I'm using chart price points to calculate my 50% retracement level, I can't go wrong! Thanks.

Jim asks:
Hi Ken, After paper trading for two months I entered my first market – Sell Can $. Already up $750. I’m still in and hoping for a 50% retractment. My broker keeps talking about “Commercial Money” is short Soybean Meal or short Cattle -- encouraging me to think about trading based on that. What are your thoughts on how Commercial Money is positioned as a basis for trading?

at 6:07:08 PM
I don't think about it, Jim!

doc com asks:
Hi Ken: What's with all the bears in Grants Pass? Every block has a bear on the sidewalk. I could understand ducks, beavers, or now even a cougar, but why the bears? At least you could have bulls instead of the bears.

at 6:10:48 PM
We can't bear it ourselves, doc com! It's called "Bear Fest 2003" and you can bearly go anywhere without seeing one! One of the most popular of these fund-raising bedecked bruins is titled "Carman Bearanda" and has a bowl of fruit on her head. Well, gotta go now, doc com, we're having blue beary bear claws with our peanut butter cookies tonight . . . .

Mark in Tennessee asks:
Good Evening Ken, Do you ever use a stop-loss to lock in profits? ie. if a commodities price gets real close to any of the 50% levels? Or do you wait for a definate price to be hit?

at 6:12:13 PM
Yes, Mark, and I call these "silent" stops which means that only my broker and I know where we wish to enter or exit and he places that order when that particular price is hit. This prevents floor traders from knowing what our plans are.

1571416 asks:
Ken, Are Tovionline recommendations contrary to the way you trade?

at 6:17:55 PM
Not a bit, 1571416. TOVI is actually precipitated from my actual trading style. The great news now is that TOVI automates my trading in EVERY market!!! (I should note that because of this scientific automation, TOVI finds even BETTER bargains than I as a mere human could ever consistently do!)

Buffalo love moose asks:
Hi Ken this is love moose from buffalo, If you have purchased an option that's near experation and way out of the money, could you sell the same option and recoup some of your money?

at 6:22:03 PM
Sure, Buffalo. You could even make a huge profit. It all depends upon what the underlying futures contract does. My practice is to hang on to whatever option I already purchased and just let it expire worthless. Why? Because sometimes that option really generates profits right up to the last day or two before it expires. To mention TOVI again, however, TOVI will actually recommend when to exit any option as it's constantly analyzing that option's value. If TOVI determines that that option is decaying too rapidly, TOVI will recommend liquidating and recouping whatever premium remains and purchasing another option of greater value.

Scott--Ft. Worth asks:
Hey Gang! About to fire up a Fuente Opus X, with my ice cold Coke by my side. Ken, I am down to my last Cohiba Esplendida. Being new to this game (but spoiled to the point of no return), I am at a loss as to the best way, i.e. quality, price, security, etc., to obtain fine Cubans. Please advise. Thanks!

at 6:25:16 PM
Try this: Get to know the owner of a large, reputable cigar store (inside or outside the U.S.) and develop a friendship and respect for each other. Then mention that you're interested in Cuban cigars . . . .

RON FROM ALASKA asks:
Are you concerned with the LARGE gap between Aug 2003 Pork Bellies and February 2004 Pork Bellies?

at 6:27:21 PM
Only that there will be a "large" drop on the Weekly chart when August is the front month and expires. Then February will become the front month. This will show as a drop in price on the Weekly, but actually did NOT happen in the futures price. All in all, however, I'm short Bellies! (Take a look at that Monthly chart . . . .)

Gkeyman asks:
Gkeyman, Ca. Ken , Iknow that you watch the front month for clues, my question is, do you watch it past the FDN until LTD? thank's

at 6:28:05 PM
Yes, Gkeyman. Long or short, I keep watching that front-month chart right up until it expires on LTD.

chart farmer asks:
I have short contracts in July pork bellies which I am in the process of rolling over to August. The maintenance margin had originally been $1200 per contract but my broker says it has been increased which is putting a strain on my account. Is it normal to see margin requirements change during a contract period?

at 6:29:28 PM
It all depends upon the Exchange, chart farmer, and usually indicates higher volatility (which can be GREAT if you're on the right side of that). Take a look at some put options as well (which totally eliminates margin, margin calls, margin increases, etc., etc., etc.)

rick asks:
Hi Ken, I have been following the Eurodollar and want to be sure I understand this correctly. Am I correct in thinking it could only go as high as 100 . If so, is it a good idea if you had 5,000 in an account, to enter now and sit back and wait ? Love the chat line, thanks for taking time for this.

at 6:30:49 PM
Generally speaking, that's a great idea, Rick. In the real world, however, it's not quite that simple. Call a Course Counselor tomorrow and have him/her explain what I call the "Elvis Phenomenon." Thanks!

Eric in Fort Worth asks:
Hi, Ken. These monthly chats continue to be great! Feeder Cattle seems to be getting pretty high, looking at the monthly chart. Are you in this market on the short side now, or are you waiting for it to climb higher first?

at 6:31:54 PM
Thanks, Eric. I'm looking for it to climb higher still.

mutt & jeff asks:
Ken, We entered a dec 9550 put on the euro dollar a couple of months ago and it has not been traded yet, was that a bad move?

at 6:32:58 PM
Not at all, mutt & jeff. Just wait and that market will probably come to you!

smokey asks:
Hi Ken, smokey from the smoky mountains of NC What do you think Coffee is gonna do?

at 6:33:26 PM
It's gonna blast to the moon, smokey, and I'm on board when it does!

Craig asks:
Ken, are there some markets you avoid, due to the high price of getting in, lack of number of traders involved, or whatever? I notice that platinum has been in a good formation, but you have not talked about that lately.

at 6:36:05 PM
No, I don't rule out any market, Craig. Platinum looks good for a short-term 50% retracement down now. (There are no options in Palladium, so I'd definately stay away from that market unless you've got LOTS and LOTS of cash!)

still_learnin asks:
Barry from Kansas City: I'm confused about something, but then, that happens pretty often. I notice that August Pork Bellies is selling today at 93, but February Pork Bellies are at 82.25. Why this difference, and how does it affect my trading? If I sell an Aug contract today at 93, then the end of Aug rolls around with no price movement, and if I want to roll it over to the next month (Feb) at expiration, what happens with this price difference? Do I somehow lose $10.75 point value? How do you trade this?

at 6:40:09 PM
If Weekly Pork Bellies are going to drop to 75 (based on its Weekly 50% Retracment target), you'd simply not profit as much if you had to roll into the February contract. It would be nicer if Bellies dropped while your August contract is still active. For example, you'd profit from 93 down to 75 rather than 82.25 down to 75. Hope this helps.

Mark in Tennessee asks:
Good Evening Ken, Thanks for doing these chats. 2 Questions - 1) Is your coffee flavored, or would that mess up the flavor of the cigar? 2) After what looked to me to be a bottom formation, I went Long in Sep 03 US Dollar Index. Looking at the 50% retracement, the returns could be worthwhile. What are your thoughts on the matter? P.S. Pass the cookies, please.

at 6:42:45 PM
Thanks Mark! 1) Yes, it's coffee flavored! No, it's just plain (organic) coffee. 2) Right on! The rewards WILL be great in the U.S. Dollar. (Also check out those call options. They OFTEN get real cheap and turn into hundreds and even thousands of dollars). Here, have a bear claw . . . .

commoditylover asks:
ken what do you think of the dollar index? Are you long? Also what's your daily, weekly and monthly targets? thanks

at 6:46:34 PM
Okay, I'll let you trick me into doing your work for you: Monthly = already made a 50% retracment down and next up will be a rally to 107. Ditto the Weekly. Daily = 101.5. That's it, everyone, no more doing your homework for you!

LasVegasChartMan asks:
Ken, I have been watching the Canadian Dollar charts for a 1-2-3 top formation. The front month (Sept) appears to have made a nice formation with the #2 point being surpassed today. When I look at the December chart, it made a new #1 top on Thursday of last week (but September did not make a new #1 top). In your experience, would this raise a concern about the front month making a 50% retracement or should I continue to focus on the front month only and disregard what is happening on the further out months?

at 6:48:16 PM
I would focus on the front month only and disregard what's happening in the other months. Sounds like you're doing great, LVCM!

corndog asks:
hi Ken! Looks like coffee's doing the same pattern as in 1994. Are same patterns a sign of a big take off?

at 6:48:33 PM
I hope so, corndog!

Happy G asks:
Hi Ken, ~~~ from Fort ~~~~e. I'm feeling very confident as I prepare to get into paper trading thanks to your wonderful materials. I've been through the TWMPMM material a few times and have numerous pads of notes. One small thing I've missed is the meaning of "maintenance" as it relates to a contracts. How does "maintenance" relate to ones margin account? If you could even point me to "page number..." that would be great.

at 6:51:31 PM
Margin is the amount of money you need to have in your account to "cover" one contract in that particular market. If that Margin amount drops to the "Maintainance" amount, you will receive a "Margin Call" to bring that amount back up to the original Margin amount.

Al asks:
Surely I'm not alone in my quandary concerning the ability to read charts correctly. What can I do besides Paper Trade to improve my my ability to do so effectively?

at 6:53:29 PM
First, Al, please don't call me Shirley! The ONLY way to effectively learn to chart is to chart! And then watch those 1-2-3 formations, narrow sideways channels, and 50% levels get hit over and over and over again. This way, you'll learn to trust your charts. And that's "effective" charting!

derek asks:
Ken you sure know your stuff. I am just going through the GAB course for the first time and you make things easy for me. Do you think that I should start trading in mini futures since I am new? I do not know what to trade first.

at 6:55:07 PM
I'd start with options first, derek. Don't trade real money until you've sufficiently paper traded, Derek!

Mark in Tennessee asks:
Ken Sir, I'm new in the GAB course, and don't feel comfortable yet with options. But I have made some profits in commodities futures contracts(Thanks!). Could I set up "A day with Anthony" to be just on futures alone (not options)? Would you reccommend it? Pass the cookies, please.

at 6:55:47 PM
Absolutely, Mark. It's YOUR day! Here, have a cookie . . . .

ptpete asks:
Peter from MA. Hi Ken, I ordered the GAB program today and I'm looking forward to catching up. I first got your course in 1996. I opened an account back then, and if I had not said ok to the broker's suggestion, I would have been better off. Essentially, I broke even. I'd attest that your strategies work - as naive as I was back the contracts still made money even though it was paid out in commisions. I think it's the right time for me to try again. Thanks.

at 6:56:54 PM
Thanks Peter, and welcome (back) aboard! (The markets are better than ever . . . .)

Sovereign Lady asks:
Hi Ken....from Seattle. I began real trading 6 months ago. I learned the hard way that I spread my capital too thin. I bought options in 9 different markets instead of selecting only 2 or 3 that I could easily buy when the options expired. It was very disheartening to see that many options expire so now I am in 4 markets for which I support options. I chose to enter the futures market and my first and best return so far was $2025 in Canadian $ & Euro currency. I am still learning so much including how to trust MYSELF. Thank you for the introductory to this wonderful way of life.

at 6:58:06 PM
Thank you, SL! Glad you stuck with it and are enjoying it even more now. Good for you!

eaglebob asks:
Ken, I have a couple Aug put options in hogs. Am I anticipating it correctly?

at 6:58:41 PM
You're seeing Hogs the same was I am, eaglebob! Thanks.

sawdust417 asks:
Tell me more about TOVI. What is it? How do we use it?

at 7:00:53 PM
It's fantastic --- the best thing to happen to commodities and options since they first began trading! Go to www.tovionline.com and take the free tour. You'll love it. By the way, for everyone, if you haven't seen TOVI lately, you'll find new and improved Long-term and Short-term market rankings such as I've never seen anywhere. Truly awesome . . . .

AZ Musicians, Ron & Lorene asks:
Ken, What's with all of these brokers being addicted to stupid news? Just got a new broker and had to school him on "no advice". When he insisted it was good, I asked if his company would cover any losses I incur by his stupid news. He replied no. Can you imagine that? These brokers are sure their news is good, but they won't guarantee it? Go figure????

at 7:01:50 PM
Good for you, AZ Musicians! And not only will they not guarantee it, they don't even trade it themselves.

Abe asks:
Hey Ken, Do you have any advice about money mangment? What percent of my total equity to risk on one trade? And also about pyrmyding as far as how much extra money or the exact margin amount before adding on? Thanks for everything

at 7:03:43 PM
Thanks Abe. Call a Course Counselor tomorrow and ask for my special 4-part GAB Newsletter series on these very topics. (Also check out TOVI's "Budgeted Options" and "Budget Minder" features!

DaveGor asks:
Good evening, Ken, this is Dave from NYC. I'm a novice at trading (all types), so this may be a foolish question because right now I lack both knowledge and experience. Are you using stop-losses only for futures or for options as well? In my understanding you let options run until their expiration date.

at 7:05:35 PM
Keep paper trading, DaveGor; it's the best teacher I know. But to answer your question, I only use "silent stops" in my futures trading. Thanks!

davisdvm in iowa asks:
davisdvm in iowa This appears to be a good time to price put options in Can. Dollar. Is dec far enough or should one go to mar of o4?

at 7:06:26 PM
Time is your enemy in options tradidng, davisdvm, so go out in time as far as you can (this is a great feature TOVI also provides).

Fred asks:
Hi Ken--Fred from Ventura---it looks like coffee is finally on the move--do you think that the prior low was the bottom?

at 7:08:18 PM
I sure hope so, Fred, but if it proves not to be, I'll still be on board!

GlennSinclair asks:
Hello Ken and all... From Glenn in Australia. Ken what steps do we have to take from the land of 'down-under' to set up trading accounts in the USA?

at 7:12:50 PM
Just call an American commodity brokerage and they'll give you the steps to take (it's quite easy). Thanks Glenn!

sherbear asks:
Hi Ken: I'm new to this and i'm an option trader so far, and doing O.K with it, however my broker talked me out of liquidating a couple of markets that I was in that were making a nice profit, but hadn't reached the strike price, and have since really fallen, how would you have dealt with this situation? I am really enjoying this business on the whole though. Thanks for all your help.

at 7:14:04 PM
Thanks, Sherbear. Stick to YOUR plan, not anything your broker tells you. And by the way, I liquidate my options when the futures contract price target is hit, NOT when the option's strike price is hit. Keep at it . . . .

T&RMoters 98 asks:
Please explain Tovi. Must have missed that one. Thanks, Phil

at 7:14:18 PM
www.tovionline.com!

warlock-north asks:
Ken, Just a warning to others. On Monday I decided to buy some put options on CDN$'s. The ones I chose Dec and Mar closed Thursday at 10 and 12 points respectively ($100 and $120 each respectively). Knowing from my charts--and now hindsight--that it was going to move, I made the rookie mistake of not wanting to miss out. I expected they wouldn't be available at those points but didn't want to miss out. My broker suggested I put my order in "at the market" so that if they went up a couple I'd still get in within my budget (about $500 per position). Well, I got filled alright, at 28 points and 30 points!!!!! My $1000 investment cost me $2800!!! An expensive lesson, and one I'll never forget. Thankfully, the charts and the last two days are backing up my original decision--CDN$ is on its way down. So my questions is this: Do I just ride this out or bail and eat the loss (they closed today at 24 and 25 points respectively)?

at 7:18:58 PM
I'd stay aboard, warlock-north. The market's doing exactly what you wanted it to! Now hang on and (hopefully) keep collecting those profits!

fgrassi asks:
Hi Ken, I am currently own August Pork Puts at 78 and 74. As you know the option expiration is 8/1. Looking into Feb options and the premiums are really high. I am concerned that my current options are going expire before premiums for Feb are reasonable. I don't want to be out of this Market and I was just wondering if you have any comments on this situation???

at 7:22:20 PM
Yes I do, fgrassi: 1) Take a deep breath. You're in the market and positioned perfectly to profit if Bellies drop. You've done great so far. 2) It's wise to PLAN for your options' expiration date, but don't WORRY about what MAY happen next (remember: You're covered!). 3) Price those February puts and place your bid. Then sit back and wait. (Please let us know what happened next month here on the Chat. Thanks! You're doing great.)

SoccerLover asks:
SoccerLover Ken, Vernon Howard’s book that comes with the Rich Man’s Secret course is one of the best books of wisdom out there. It is one of those books that finds you rather than you finding it! When applied, your advertisement for the course is true - all your wishes can be granted, success in love and business, loneliness and anxiety gone, happier, more relaxed, attractive, carefree, released from painful situations or persistent problems, attractive, healthy and brimming with youthful energy for the rest of your life!! ….. Thanks for making the course available.

at 7:22:56 PM
Thank YOU, SoccerLover. Glad you found it!

lovechart, from Calgary asks:
Hi Ken, I've been paper trading on options for about 2 months now and getting better everyday. Here are my paper trades and see if you agree with me: I have calls on oats, wheat, silver, us dollar index, coffee; puts on soybeans, british pound, euro fx, swiss franc, t-bonds, euro $, pork bellies, and hogs. My broker doesn't seems too excited about options, because I only shop for cheap options. Thank you.

at 7:24:50 PM
You're doing SUPER, lovechart! That would take too long on tonight's chat, so call a Course Counselor tomorrow who will run through all those paper trades with you. Thanks!

Howard from Austin Texas asks:
Hello Ken, I really value these chats and study each one. I got burned on corn recently thinking it would turn around but it kept going down and since I did not use a stop, lost more than I should have. I had to get out due to running out of money. In my paper trading, I have made so much money it is not funny, but I cannot get it right in the actual account. My broker is basically saying I need to trade in a more short term method and that most clients make money that way. I am torn in trying to trade long term as you advocate (until the 50% mark is reached) and the other method. I have made so much money on my paper trading it is not funny. I am not worried about running our of money there. What are your recommendations ?

at 7:26:05 PM
What are you doing DIFFERENTLY in your real-money trading from your paper trading? Therein lies your answer . . . .

ED man asks:
Can the Eurodollar drop significantly over a 6-9 months time period to make money on puts for that time period?

at 7:26:33 PM
Absolutely, ED man!

glenn2 asks:
Hi Ken! This is Glenn from Palm Desert, CA. When a contract is getting close to the LTD, does the broker automatically roll it forward for you, or do you need to instruct them to do this? Also, are commissions charged for rolling it over (close+open)? Thanks!

at 7:27:47 PM
YOU need to instruct your broker when to roll, glenn2. And yes, there will be another commission charged on the new contract(s). Thanks for joining us this evening.

Larry asks:
Hi Ken, This is Larry from VA. TOVI shows the initial target of 98.69 and secondary target of 97.585 for Eurodollars. Looking at the weekly charts, the 50% retracement is around 95.88. What do you use as a target to shop for put options?

at 7:31:24 PM
This is kind of like mixing metaphors, Larry. If I were to trade a market with options by myself (not using TOVI), I would use 50% targets as prompts to choose my strike prices. When I use TOVI to trade, I stick with TOVI's recommendations and disregard my targets, strikes, etc.

rktech asks:
...oh Ken, you wiley cigar smoker you... Ok Ken, I've been paper trading on and off for almost 3 years now. It seems every spring I rally behind a trading strategy, and come summer I'm treading water trying to smooth out some other business issue, and not getting started in real trades whatsoever. Now I know there's NO trading system that works ALL the time, and I don't expect any Ken Roberts tradin' miracles to blow my socks off. BUT (you knew there was a but coming, didn't you) do you think I would be better off just jumping in, trading plan in hand, and weathering whatever trading storm I initially encounter, rather than finding mysel next spring seeing the markets take shape and not being involved !?? ... a bit of a complex issue, I know, but still, any sage advise, oh tobacco guru ???

at 7:32:32 PM
Try TOVI!

Kristos in Birmingham England asks:
Good morning Ken (2.30am here). Whats your thoughts on putting money into a pension and letting the so called experts invest it? Is it wise to trust our financial advisers on funds that us younger guys will not collect for 20 years? Apart from saving a little tax, maybe we should take control of our own destiny and buy more coffee ???

at 7:34:52 PM
Great question, Kristos, but it's much too personal for me to quickly answer here. Call a Course Counselor and ask about my "Retirement Course." That's the best I can offer you here and now. (Now go get some sleep! Thanks for joining us from across the Pond!)

derek asks:
Ken, I appreciate your willingness and servant heart in helping people trade in commodities. I just got in on September 03 dollar Mini futures at Market price and went long. Is this wise or foolish?

at 7:35:47 PM
I'd be long the U.S. Dollar, too, derek, and based on today's rally, you did just right! Thanks!

rastaman asks:
Ken, everytime i start my pyramid the prices don't go far enough for me to finsh it what I'm I doing wrong?

at 7:37:14 PM
Try paper trading options, rastaman, and create a "reverse" pyramid; that is, a broad-based pyramid that gets "peeled away" rather than added to as prices advance . . . .

Simon Blake asks:
Hey Ken Simon from Toronto, a canadian with intellegence . What do you have for Sugar's Monthly 50% retracement? I only have 20 years data on my charts.

at 7:38:23 PM
Okay, Simon Blake, I'll do this one for you: 23.55.

n.y.c. kidd asks:
hi ken, can you tell me who this hillary is that you always refer to so often? And also will you tell me what she did so can i read about her somewhere?

at 7:40:55 PM
Wait a minute, n.y.c. kidd, you're from New York and you don't know who Hillary is?! Well, anway, don't waste your time finding out about her (it'll pollute your brain).

rick asks:
Ken, I noticed corn is in a down trend. Do you feel it is still headed lower...just curious on how you would trade this. I was wanting to look at call options at this level.

at 7:41:50 PM
I'm sticking with Corn's Monthly 50% Retracement.

Daniela asks:
Hi Ken I've noticed many daily charts start relatively low and invariably go up. What's your position on getting in real early at a low price and simply sitting back, showing patience, waiting for prices to go up? Seems to me the odds are pretty good. Thanks for these chats!!!

at 7:42:33 PM
Thanks, Daniela. Try it! That's why paper trading's so great.

EagleEye asks:
Ken, what do you think about discount brokers when you're still new to the course?

at 7:45:23 PM
Please refer to your Course materials where I go into detail about discount brokers. Thanks!

113 Degrees & climbing asks:
Ken , you say to only focts on the front month , but i look at the farther out months and if the farther out months are making the formations , wouldn't it be wise to trade those months as well ?? like in the eurodollar dec 03 , March 04 eurodollar and the june 04 Eurodollar...Or should i only focus on the front month ??

at 7:46:30 PM
I take ALL my cues (and make my trading plans) from the front-month chart --- it's the DRIVER. Thanks!

7 kids & no TV asks:
Ken, Do I understand you correctly. You base your trading decisions on the front month pattern, but in order to give the contract time to move, you trade back a month or two?

at 7:47:45 PM
Yes!

Bill from Boston asks:
Hi Ken. If you could only afford to buy options in one market, which one would it be?

at 7:48:22 PM
Coffee (because it shows me the greatest dollar-sized move on the Monthly chart).

Craig asks:
Hey Ken! I just got confused by one of your answers. You said to sherbear that you liquidate your options when the FUTURES contract price target is hit, NOT when the option's strike price is hit. Is that when the futures contract hits the 50% retracement level?

at 7:48:42 PM
Yes!

lou asks:
Hi Ken, Thanks for all this help--what's the GAB course?

at 7:49:12 PM
Great question about a great Course, Lou! Please call a Course Counselor for all details.

asks:
Hi Ken and Crew, I have missed the last couple of chats live, and have enjoyed catching up with them later. Loving trading the options, as I am able to stay in markets that can bleed me down on the rollovers, ie coffee, and also allow me to participate in some markets that are too expensive for my account. My best purchase so far were 2 Sept. Wheat 440 call options I bought on 4/25/03 for 3/8pts($18.75+ commision)and then sold (excuse me, LIQUIDATED my postition) one call in May when July wheat hit its Daily 50% for 2pts ($100.00)!!Next time I will by 2pairs. My bid order is already in place for a Mar 04 440 calls while I watch the market retrace.....Love it!! Hope you are having a great summer!!!

at 7:50:10 PM
Thank YOU!

Mark in Tennessee asks:
Hello again Ken, I may never get the chance to meet you or tell you in person THANK YOU. Not just for being responsible for some profits I have made, but more importantly THANK YOU for sharing this information. I believe that I would probably kept these wonderful secrets to myself and maybe shared them with my closest loved ones and friends. Yet you continue to introduce people to this Alice in Wonderland world of Commodities and you are patient with them as they learn and grow. I hope you print this because I mean every word. Bless you. Mark in Tennessee

at 7:51:46 PM
Thanks, Mark, I needed that!

TahoeClay asks:
Hi Ken and Crew: Just checking in, and letting you know I am still alive and trading and loving it. Options Rule!! I can't wait till my account allows me to by in multiples of 10 options instead of 2.

at 7:52:18 PM
Where have you been, TahoeClay?! (How do you love that TOVI?!)

Al asks:
Ken, if one has a definite plan for trading options and understands how to place trades on-line through a brokerage, why would he or she need to consult a broker?

at 7:53:01 PM
I've never done it Al, so I can't comment. If it works for you, that's all that matters. Thanks!

Mike_A asks:
Inverness, FL here. Ken, I went through several courses about 4 years ago and did really well. I stopped trading but now I'm back. I've been trading this past year with a broker making most of my decisions. Do you have any advice for me since I've been away? I remember most of the concepts. Sometimes I have difficulty calculating where a market will retrace to.

at 7:53:41 PM
DON'T listen to a broker, Mike_A, and check out TOVI!

Wilfbort asks:
Hello again Ken, When preparing a trade based on the weekly and monthly 50% levels, is there any general "rule of thumb" for predicting the length of time for 50% levels to be attained? For example, coffee has been on downtrend (on the monthly chart) for years. When strategizing in this market, is it safe to conclude that "X" number of years from the high to low equals "X" number of years to reach 50% level? Thanks again, Wilfbort

at 7:55:01 PM
Personally, I cannot answer this, Wilfbort, and have always said "No one knows when . . .", but now with TOVI, TOVI tells us how long to plan for any particular trade to pan out. (Isn't technology amazing?!)

n.y.c. kidd asks:
hi ken doesn't the use of tovi take away the fun of tading options?and should beginners use tovi before they learn to trade?

at 7:57:34 PM
No, n.y.c. kidd, for me, TAKING PROFITS is the most fun I could ever have trading. Part two of your question: You really need a basic understanding of the markets before TOVI will make sense to you. (How's Hillary?)

TomMazzzz asks:
Hi Ken, I'm really having a hard time finding a broker willing to start an account for me for less than $5000. This will put me back another year. Any suggestion??? Thanks!

at 7:58:06 PM
Call a Course Counselor tomorrow!

Mark in Tennessee asks:
Hi Ken, I just took some profits out of my account to take my wife out for her Birthday dinner. It won't be fast food this year!! (Thanks Ken!!!) Does it look to you like Sep 03 US Dollar index is going to make its 50% retracement? I'm Long at 96.00.

at 7:58:46 PM
I'm long too, Mark, and Happy Birthday to your wife!

Well that's it for another month. Here are my favorite web sites if you're interested: www.tovionline.com ; www.uschartco.com ; www.fourstarbooks.com. ; www.historictrees.org. ; www.billoreilly.com ; www.wildlifeimages.org; www.LP.org. My next chat will be Tuesday, August 5th. As always: Use these newfound powers only for Good. Good night!

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