Ken Roberts Chat

Just look at those teeth! Now what could possibly be intimidating about trading the commodity markets?! (This is Tank, a 15-year-old cougar who was hand-raised at Wildlife Images, just 12 miles outside Grants Pass.)

Your fellow Course Member, Bernd, who lives in Germany just sent me this email:

Hi Ken

Here my questions for the chat by e-mail (I have a lot more, but I try to leave it at 3...). It's great to be able to participate this way from Germany, so thanks a lot!

> 1. How do you select the markets you follow? Is the decision based on liquidity? Do you follow only the markets shown in "Ken's Chart Book"? Or do you trade all the 40+ commodity markets if an opportunity arises?

Guten Morgen Bernd! Willkommen!

First I sit down with my paper price charts and look through the monthly charts for extreme highs and lows. Then I get a closer look at these with the weekly charts. Then I "zero in" with the Active Futures Month daily chart. These are what you see in Ken's Chart Book.

I follow ALL those markets until one of my trading strategy entry signals is hit. And that's when I go to work shopping options and/or futures contracts. If liquidity is an issue, my broker will advise me at that point in time and I'll "work" my order accordingly. (Sometimes I just don't get filled on an option and I can't/won't make that particular trade. But with over 40 major markets to choose from, I'm never "left out in the cold"!)

2. Is it okay to trade a far out of the money option with plenty of time remaining until expiry, for example over one year? Or do you see a disadvantage? (Of course I'll stay with my TOVI recommendations, but I am just wondering, as I saw a December 2006 put with the highest value for Cocoa in TOVI...)

TIME is ALWAYS your friend when trading options, Bernd! But a "far-out-of-the-money" strike price is debatable. Some traders like those, but others stay closer to the money. Experiment and see which method YOU prefer . . . .

3. Supposed you decide to enter a trade based on an entry signal triggered by one of the WGB strategies, but your order is not filled. Now, on the next day the market retraces opposite to the direction you had planned to enter the trade. Would you follow through with your trade, or is it better to observe the market's actions before placing the order again - that is, to wait until the direction of the original signal is confirmed again?

Personally, I use that retracement as an opportunity to purchase my option(s) even cheaper, but some traders use that retracement to "regroup" and wait to see if the market resumes its initial breakout. I give examples of BOTH these approaches in our popular "It Just Happened"(tm) email alerts we've been sending out. So again, experiment and see which way YOU prefer . . . .

WGB and TOVI online are the greatest educational sites for commodity trading education I know, Ken. I already owe you a lot. We could need somebody like you here in Germany.

Thank you, Bernd --- I'm flattered.

And did I mention? A Rich Man's Secret is one of the profoundest spiritual books I know.
Best,
Bernd

That was great! Halfway around the world . . . .

OK, keep scrolling now and get in on all the fun, instruction, and experiences we all had last night . . . .

Oh! P.S.!!! Here's Bonita Joe's response to "azjoe"'s inquiry at 8:09 regarding Mexican vs. Cuban cigars . . . .

azjoe asks:
Hi Dr. Roberts, I had my first Cuban this weekend in Mexico. I'll never be the same. Do you feel Mexican cigars are as good as Cuban?
at 8:09:39 PM

Ken ............Mexican Cigars??........Well, I'd be afraid of what they are really made of....!!!!!!!!!!!!!
Thanks Ken - Bonita Joe

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Let's Talk Trading (tm) with Ken Roberts
from July 12, 2005

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As we begin this evenings 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.

Its 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. Thats what my Course Counselors are here for...

Now is the time for you to use me to help you apply the basics youre learning and to prepare you for what to expect once youre 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... Ive got a Davidoff Double R fired up, heres our platter of a Krista's freshly baked chocolate chip cookies, the coffees poured, so lets talk commodities!

NOTE!!! When commenting on one of my Courses, please identify WHICH ONE. Also, when relating trading experiences and/or results, please give details: Futures contracts, options, options AND futures, etc. This helps others follow along and learn from your experience too.

Ceil asks:
Hi Ken and Team (that's Team with a capital "T"). I'm back in NY after the weekend trading camp. A lot of travel for a terrific experience at your offices. I got a LOT from the weekend. But mostly what I walked away with was confidence. Thank you all! I've noticed that there are some very thinly traded months in the online charts that don't show up at all in the paper charts, for example July and September gold. First question: What do they mean, and why are they included? If you're doing all your trading online, it might be possible to miss the fact that these months are months to avoid. And if you get into one of them by mistake, it might be hard to liquidate the trade. Second question: Can you put a special symbol, or some other indication in the list, that these months will never become the active month, so don't trade them? Or maybe list the active months to trade somewhere on the website?

at 6:16:45 PM
Thanks Ceil! (Thanks, too, for the letters-only straightforward online name!)

We all enjoyed meeting and working with you too --- it was a real treat and our honor hosting you and all your new trading friends last weekend.

Good points on the "serial" months in commodities (many of which are not actively traded by speculators such as you and I, and which will never become an active month). If you tried to place an order in any of these serial contracts, your broker would advise you not to. BUT . . . yours is a great suggestion, and we just put it on the big to-do list for the upcoming brand new and improved U.S. CHARTS site.

Thanks, too, for keeping your promise to join us this evening!

Here's a link we just created since last weekend's Trading Camp showing Ceil and her peers here in Grants Pass this past weekend . . . .

When I spoke to everyone last Saturday, I was shocked to learn that ONLY ONE Course Member joined us at this LIVE monthly Chat!!!!!!

"Well what if everyone didn't join us like you don't?!" I scolded them! If everyone were like YOU ALL, we wouldn't even have Chats!!!

So they all promised me that they'd be online with us this evening. (We'll see . . . .)

Click the picture to see lots of photos of last weekend's Trading Camp:

adam in portland, ore asks:
Ken, you've said that entering a market is a science, getting out is an art form. Can you offer any advice on strategizing, when entering a new position, about how long to hold it? Example: based on Hi-Lo, I paper traded into a Soybeans Jan 06 call option in mid-June, right before prices crested. If I'd sold when they did, five days into my position, I'd have made about a 35% ROI in a week. But is that a very short time? Or is it typical? In this case, I held on, prices pulled back and I've been in the red ever since. I'm still holding, however, because TOVI says the market is still in strong uptrend. Thoughts? PS: The website is fantastic - extremely easy-to-use and functional. Thanks!

at 6:26:51 PM
Thanks Adam! The dilemma you're describing is why I always harp on having an EXIT strategy BEFORE you enter a trade. Paper trade at least each of the THREE exit strategies listed in each of the Trading Strategies in the Members Center.

Great question, but there's NO simple answer, Adam. Thanks!

NestorTango asks:
Hi Ken: This is NestorTango and I really enjoyed the Trading-Camp exprience lat week-end. It was "super" in all aspects starting with your hospitality, the instructors, material and food, to make learning commodities fun, even for a beginner like me. You have an "awesome" team and family you should feel very proud of; Congratulations! My question: can we define as a rule of thumb that to predict performance for an option the higher the "premium" the better chances for it to be a winner? If your answer is "No"; wouldn't the opposite be considered shifting from prediction to luck/gambling? Tks, again.

at 6:31:42 PM
Thank YOU NestorTango (thanks for not including numbers in your name too)!!!

My answer's NO, NO, NO!!! And yes, traders who think that way ARE banking on luck and gambling --- especially now that we have TOVI!

One of the main facts TOVI proves is that premium can have NOTHING to do with true value!

(If you haven't taken the TOVI Tour and signed up for your free trial run, do it!)

Melinda Dorsey asks:
how do i get in this chat room?

at 6:32:46 PM
We're over here, Melinda! Come on in!

dcs asks:
Hi Ken, I am a beginner trying to understand enough to start. I have done some paper trading and want to get in there and make some dough. What do you suggest?

at 6:34:38 PM
Paper trade, paper trade, paper trade, dcs, (What Krista calls "The three golden rules!"), UNTIL you find yourself saying "I'm tired of being right and not making any money on it a LOT . . . ."

Being on this chat is also a very good thing to do. Welcome!

robert in biloxi asks:
robert in biloxi, ken do you ever do any spreads, ie. dec hogs buy and sell april 06 hogs??

at 6:36:39 PM
Nope, never do, Robert. (Say, did you feel the effects of Hurricane Dennis?)

harry asks:
ken this is my first time on, and i have a lot to learn. so ill look and see what i can learn tonight. two weeks will i be better?

at 6:37:34 PM
Yes you will, Harry! In a couple of weeks, you'll be spouting commodity jargon to everyone you know! Welcome aboard!

Gaetan asks:
Good evening Ken and all members. Tonight is my first chat so I've got to get the hang of it, thank you. My name is Gaetan and I live in Bangor Maine if you know where that is.

at 6:38:28 PM
Yes, Gaetan! We know where Bangor, Maine is! Welcome to "Capitalist Haven" . . . .

LeeS asks:
Hi Ken, Got my Camel cookin, Francia Burgandy and Oreos, so let's go. I noticed the TOVI trend tracker for CORN jumped from a July front to a December Front. This also happened on several others also. How come it bypassed the in between months?

at 6:41:00 PM
Those Active Months switch, LeeS, when both Volume and Open Interest are exceeded by another month. So the answer to your question is, "The market itself determines which month becomes the Active Futures Month." Good question.

gramps asks:
I have figured out when to purchase options with the help of your emails and news letter but I am not sure when the best time to sell them. Can you give me some points to look for.

at 6:42:52 PM
That would be whatever YOUR exit strategy dictates, gramps. See sample exit strategies in each of our Trading Strategy pdfs at the Members Center of www.kenroberts.com.

nixpix asks:
i enrolled in wgb when you were buying (futures) contracts now you are touting options. everything i learned taught me 90% of options end up out of the money, so i am having a hard time getting into the option mode. i have also been to busy to really get involved i hope that will change soon.

at 6:46:22 PM
Give options an honest try, nixpix! Options didn't even exist when I began trading, and when they did come along, they weren't all that plentiful (there are over 12,000 a day to choose from now!). Remember the "Cattle Rancher"'s story I used to tell --- how this rich rancher loaded up on Cattle futures, waiting through huge drawdowns (but had enough cash to do so), and then sold to take his profits when Cattle eventually rallied again? Well THAT'S what options allow you to do WITHOUT having to have all that cash backing you up! Stay in touch.

Mr. Ed asks:
Windsor,Ontario Hi Gang, Ken, you often mention that you are "trailing a close stop" even when you are talking about options. Since you can't have "stop-loss orders",as such, on options, what exactly do you mean? Are these simply "mental stop-losses" for your own use?

at 6:48:24 PM
Hello Mr. Ed. These are "silent orders" we (and our broker) keep to ourselves. They can be either a dollar amount of that option's premium, or a specific price on the daily price chart. Good question.

Mike in NYC asks:
What do you think of buying multiple options, say in lots of 5 or 10, to get more leverage for your money? I recently have done that with (10) 111 put options in SEPT 10-yr T-Notes, for about $281 each. I purchased them for 18/64 around the contract high, and today they closed at 31/64. So I'm up a little over $2,000, before fees and commissions. Trading this way has a small move on 10 options add up quickly, and a larger move really pays off quickly. You also have the safety of a known risk by buying only options.

at 6:51:11 PM
That's strictly a PERSONAL decision, Mike in NYC, depending upon YOUR trading style, budget, temperament, etc. Sounds like you've got a good system going for yourself, one you're comfortable with. That's terrific!

Neil asks:
Which of the basic systems do you find to be the most successful? Hi-Lo Breakout, Strong 1, or 1-2-3 Tops and Bottoms.

at 6:52:07 PM
I personally am partial to the Hi-Lo Breakout, but you'll find that LOTS of Course Members prefer the others! Again, it's ALL personal. This is why I harp on paper trading so . . . .

Greg in Tulsa asks:
Ken, I just returned home to Tulsa Ok. after attending your trading camp last weekend. I don't have any questions because I now know everything about commodities and trading! Well maybe not everything, but a heck of alot more than I did. I just want thank everyone especially TraderJim and Loui for everything. You guys were all tremendous. I encourage everyone,regardless of their experience level,to attend your trading camp.I received so much more than I expected. Thanks a million. Greg

at 6:54:44 PM
Hey Greg! We're all here: Krista, Louie, Jim, and me! It was sure great meeting and spending time with you. (Isn't it terrific being in a business where none of us has to worry about "competition"?!)

NDuffle asks:
Hi Ken, this is Nelson in Austin, Texas. I'm a new guy, just joined this week and started exploring your site today. I really like what I see. Question -- if I'm paper-trading online, is there any place that I can just click a button and see how much I've made or lost for that day? Or is this just a ridiculous question to begin with?

at 6:55:55 PM
Yes, NDuffle --- just go to U.S. Charts online and input your "trades" into Trade Tracker. Hey! That was an EASY question . . . !

maryr asks:
Hi Ken, I've just enrolled in the World's Greatest Business and have just opened an account. I know the best thing is to start paper trading, but exactly what should I do to get started? Thanks.

at 6:57:29 PM
Hello and welcome, maryr! Go to the Members Center and click on the "Get Going!" icon (second one on the right). And, as always: Remember that you can call my Course Counselors any time!

greg in arizona asks:
Hi Ken, Just started reading "Truth vs Falsehood". It'll take me a while to get through it but looks like it'll be good. And man, Four Star sure got it here quick! Thanks for everything!

at 6:59:36 PM
Yes, Four Star beats Amazon.com again! Thanks Greg. What a textbook, huh?! (Did you see his calibrations of "global warming"???!!!

Ceil asks:
Cool pix!!

at 7:00:14 PM
!

A WORD TO THE WISE: Go to www.fourstarbooks.com RIGHT NOW and get your order in for Dr. Hawkins' latest (and long-, long-awaited) TRUTH vs FALSEHOOD. Even Dr. Hawkins' website (www.veritaspub.com) is sold out and backordered until mid-August.

(Or click here:)

The Birth of a Star

Gypsy Rose asks:
Ken, et. al. (that would be Big Jim and Louis and Krista and Donna and Deanna!) - a huge THANK YOU for putting such a wonderfual Trading Camp together...as I read through my Saturday agenda Fri. eve., I started to be nervous - yikes! what if I jumped in and wasn't ready to do this?! Everybody was gracious, I learned that I continue to be my own worst enemy, still doubting, still doubting - NO MORE! Ken, the building tour and the fact that you gave us the tour will be a memory forever for Andrew and me - thank you - what a quality man who didn't have to share any of his knowledge (but you know that!). I am crossing one name off my list of "Famous People I Never Met" - that would be you - Andrew drove straight through and we were home Sunday about midnight, and I didn't go to sleep until 3 - checking my e-mails, my Tovi, my Short and Long Term rankings.......

at 7:11:03 PM
Krista says "Hi!" Gypsy Rose, "How's Gizmo? Churchill and Winston are here tonight with us and would love to meet him too!" So glad to see you and Andrew again. We loved hosting you at the Trading Camp. Onward & Upward!

Dave C, Natick, MA asks:
I have been trading options for a short while, and now I'm curious, under what circumstances would I consider to exercise an option and trade the underlying futures market?

at 7:13:30 PM
Hello Dave C! I've NEVER exercised an option, and don't know anyone who has (and really can't think of a good reason why someone would). (Is this one of those "things" that haunts you as you try to go to sleep at night, Dave? Funny how these get caught in our brains --- just like "It's A Small World" does . . . .

tacodog asks:
Hi Ken & crew; Been trading with you guys about 4 years and have had limited, but positive results up until about 8 months ago, thats when I got the A.C.T.T. course. I went thru the course 3 times and could'nt believe what Ted Warren was teaching, this man was really wired up backwards {contrarian wise}.After 2 months of paper trading with great success using the A.C.T.T. principals, I turned into a confirmed TEDHEAD. For the next 2 months I traded real money and pocketed a tidy sum of denero and then decided to throw TOVI into the mix { which I had been using for about a year}, You have always said " keep trying until you find a strategy that works for you", well I found it, this is a grand slam home run! This stuff works, if anybody does'nt have these great tools, get the crowbar out and pry open the wallet and get after it! THANKS KEN!!

at 7:14:25 PM
Outta the park, tacodog!!!

George asks:
Ken: Thank you for taking the time for the chats; great pictures of the weekend. I thought it was June 25th and not last weekend,(there was a family wedding on 6-25 and I missed the training). Are you hosting more weekeds during the summer?

at 7:15:39 PM
Stay tuned, George! August is sold out, but watch for a new September Trading Camp to be announced soon! (How was the wedding?)

goofygt asks:
I know you have always taught 50% retracments. Are 50% retracements helpfull in exiting options positions?

at 7:18:02 PM
Yes, goofygt, IF your exit strategy is based upon the underlying futures chart hitting the 50% Retracement level. (Have you seen the brand new FIND! at Four Star --- The Trading Rule That Can Make You Rich? It's a classic . . . .)

Gypsy Rose asks:
I am not, repeat AM NOT the expert here, and were I to be asked, I would encourage the attendees at the Trading Camp to Paper Trade as Ken says. Don't rush things. It will cost you money and then you will end up Paper Trading anyway. I personally would not have come to Camp any earlier than I did, but am so glad I did. The experience left me a little surprised that I was able to follow along just fine and the jolt of increased confidence in my Trading and knowing I am finally on the right track is extremely empowering. All you readers out there, save your pennies and take advantage of everything that is offered - nothing like learning from the expert and his team!

at 7:19:05 PM
Did you get that everyone? There you have it: Right from a veteran!

Dee asks:
Hi Ken, This is Dee of Salmon, ID previously of Las Vegas. Kudos to you and all your staff . I am most humbly grateful to you. I was a course member about 11 years ago and thought I would like to take it up again, now that I have taken an early retirement. I am glad you changed your mind about computers!!! They are wonderful aren't they? When purchasing an option, Is it wise to limit the price of the option to a certain percentage of one's account size? For example, 10% If so, how much would you recommend?

at 7:20:49 PM
Welcome back Dee! Great question, but that's a number YOU must determine. Work at it. Experiment. Paper trade. (And then let us know what your "magic number" turns out to be!) Thank you, Dee!

Cathy from San Diego asks:
Hi Ken, Jim, Louie and the rest of the gang. The June Trading Camp was great, things really clicked in for me. I bought a new lap top (so my husband and I are not competing for the computer) and I am writing my business plan and looking at as many charts as I can so I can get familiar with the formations. Are you still in Crude?, that has been a wild one. Thanks so very much for everything you do to help us.

at 7:24:18 PM
Yes I am, Cathy --- and waiting for higher prices still. Sounds like you're doing great. You're right: You can't chart and paper trade too much! It was great meeting you at our June Trading Camp. (Would you like to share with all the other lady Course Members online with us this evening what it was that turned out to be a very pleasant, and unexpected, surprise for you at our Trading Camp . . . ?)

rmchenry asks:
Hot Phoenix, Arizona here (115 degrees today). A little advice to the new traders out there Ken. I did what Mike in NYC did, but with futures contracts (went short with 5 futures on the SEPT 10-yr T-Notes). I'm up $2,800.00 in less than a week. I couldn't have done this without paper trading and using the three golden rules. Thanks, Ken!

at 7:26:42 PM
Hey, rmchenry, Krista and I are headed your way! We're going to Dr. Hawkins' Workshop in Sedona this weekend and will be picking up a Hummer in Phoenix. (What does 115 degrees feel like?)

jmjanisse asks:
Ken I think you created a monster. My husband (John) spent this weekend at your camp. It is so nice to know that whatever is said he can answer like a broker (or something). I have not seen him so excited in years. Even the kids say thanks! Did you get gumbo yet?

at 7:29:03 PM
Not yet, but Krista's working on it! Krista says to thank John for that great recipe. (Say, jmjanisse, how'd you like seeing John in the driver's seat of that Hummer H2?! Now he'll be wanting one --- that's what happened to me.) Thanks for letting John come out and see us --- we all loved meeting him.

Phil in the Ville--Fayetteville, GA asks:
Hello Ken--Your "Watch Me Trade" video was such a refresher to me--I had gotten way off track, falling under the sway of the "funny-mentals"--you know, rumors of drought, etc. But when I watched the video, I remembered how simple this business is...trust the charts ONLY because EVERYTHING has been factored in to the charts. Thanks for setting a great example and sticking to what works.

at 7:29:45 PM
Thank YOU Phil --- I couldn't have said it better myself!

robert in biloxi asks:
Ken, this is for Adam-I'll take a 35% ROI in 7 days. just think how much you will make in six months.

at 7:29:58 PM
!

tpharis asks:
I've been a member for about 2 months and signed up with Refco like you suggested. Their broker has been extremely helpful and friendly. Just this week I bought 3 different options and am currently up about $100. I wish you had sent the brochure before I lost $10,000 in the stock market. Terry

at 7:30:45 PM
Sorry, Terry. I'll be quicker next time . . . ! Congratulations!

truthseeker asks:
Thanks for the great books you always seem to find for us! "Truth vs. Falsehood" has been quite an eye-opener for my wife and me. Keep up the good work, Ken!

at 7:31:11 PM
Glad to do it, truthseeker! And thank YOU for being there!

steve j asks:
hi ken i had good results with S1 stratagy paper trading.made good money. today i got into corn and oj for real .i know that what i know now im gonna make Lots of money even if i got to take 300.00 500.00 a pop. it adds UP. STEVE IN WEST PALM BEACH

at 7:31:47 PM
Yes it does, steve j! (And remember to keep us posted!)

Mike in NYC asks:
Ken: When you are making money in a trade, the trend is in your favor, and it looks like it will never stop, do you ever allow yourself to read the news to see why the market is moving? Or do you 100% ONLY trust your charts and just let the profits add up, and liquidate your positions at logical support or resistance points on the charts?

at 7:33:23 PM
Charts ONLY Mike in NYC --- honest! Ignore the news! (In fact, if you do hear some news some evening while watching TV, notice that market the next day --- it will likely be the OPPOSITE of what the news said it would be!)

GregCan asks:
Hi Ken, I was with you in 1999, read you book, lost some money (my fault) now I'm back and see incredible system, interactive charts online etc, etc. I'm simply amazed!! My question is: Do you teach trading futures too? trading futures with options? I will start with options of course. greetings GregCan

at 7:34:38 PM
I teach them BOTH, GregCan! (See my ACTT Course.) Thanks for the kind words. Glad you're back aboard with us!

Debbie asks:
Hi Ken, Just wanted to share my recent trade with real money. Purchased one Sept. Swissy 77.00 put option Mar 28 for $400.00, cashed it July 7 for $1350.00. Purchased one Sept. US$ 90 call option May 16 for $440.00, cashed it July 7 for $1,400.00. Thought I should exit my trades with profits in wake of the London attacks, and looking at the Swissy and US$ dollar today I sure am glad it did. Thanks Ken,for helping me understand commodities, I really enjoy watching the markets and trading. Debbie, Ontario, Canada

at 7:36:36 PM
Go, Debbie, go!!! Good for you! Appreciate the update! (How'd your broker respond when you said "Swissy"?!)

Cathy from San Diego asks:
Ken, I had several surprises that weekend however the best one for being a lady was: I was the only female attending the camp therefore I NEVER had to wait in line to use the restroom. This was a first for me and I smiled and giggled eveytime I walked that lovely marbled tiled restroom. I felt like a queen. Thanks.

at 7:37:15 PM
!

salvomix asks:
Hi Ken, entered corn and coffee since our last chat with real money (paper traded for 8 months). Sold some stuff on eBay and took the plunge. Very excited. Thanks!

at 7:38:01 PM
Thank YOU, salvomix! Stay the Course --- and stay in touch!

avenger65 asks:
Hi, my broker was so right about my exit plan , If I had listened to him , I would have made 1000.00 more than I did ! I did my exit plan and will always do my exit plan cause it's MY money !!! I think that in the long run , I will be ahead ! Question : Do you ever listen to your broker's advice? Like when he has some news that you haven't heard yet?

at 7:38:49 PM
NO, NEVER! You're right: It's YOUR money!!! Good one, avenger65. Thanks!

PaminNH asks:
Hi, Ken. I'm looking at the charts for August Pork Bellies and Sept Rice. It looks like a good time to price call options. What do you think?

at 7:40:24 PM
(Krista's tearing through her U.S. Chartbook here, PaminNH, and just said "Whooooa!") That's always a good sign . . . . Krista likes Bellies and Rice too!!!

joeinindy asks:
Hi Ken & Team I've been trading since last November and had some pretty nice profits and the losses were kept minimal. Most recently had nice gains in beans and cotton and currently have options in corn, feeder cattle and live cattle. It's amazing that the more I trade the less emotion is involved. Thanks for all you do

at 7:41:34 PM
That's called knowledge, joeinindy! Nothing beats experience, does it?! Thanks!

fatback asks:
ken....fatback... murphy ,nc....u gotta love those double tops on the 30yr bonds....and i'm short from 117'20....come on down bonds...where in the world,(no where else)..can u find such great markets to trade......and the "spirit of the FREE"...ps....i believe if u look at corn still in the shuck...its red, white, and blue!!!

at 7:42:19 PM
I'm with you, fatback! I'm proud to be an American!

TomC asks:
Ken, Is there a down side to trading through an on-line broker? Compared to a my current broker's commissions, it's about 1/4 the cost/option.

at 7:44:36 PM
I've never traded online, TomC. I just like the one-on-one with someone else watching over my account with me. There's no "back" button when placing an online order! (Realize, however, that I do NOT look for ADVICE from my broker . . . .)

casha asks:
Ken and your great people. Thanks for doing what you do. I sense that you really do care and that you want to see people who have been struggling, do well. I know it's possible.. just not there yet. I've been searching, and I sense that you are genuine and that you really don't need the money.. You just get a kick out of seeing people rise out of worry and poverty and for that I thank you. East Coast time is 10:08. I have to go to bed because for now, I still have my dredded day job so I gotta go. I will continue to learn from you. Thanks, Mandy (Casha)

at 7:47:42 PM
You're welcome, Mandy (even though you'll be seeing this WEDNESDAY morning)!

SolidAnchor asks:
Hello, Ken, from a ship in the Tatar Strait, between Mainland Russia and Sakhalin Island! I LOVE THIS BUSINESS! I have to trade options because my communications is sometimes less than desireable. Last week, I was down $530 per, but options let me ride out the correction. I just rode Canadian $$$ CALLS to a $450 profit. Got out yesterday, and if I had stayed in, I'd be up another $500, but "you can't lose taking a profit!" I hope to get good enough at this to stay home with my family, instead of spending so much time afar. Need to spend some time in Grants Pass, with a couselor, and get tuned in. Thanks for all you do! HOOYAH!

at 7:51:32 PM
Thank YOU, SolidAnchor! What a genuine treat to hear from you! This is a first . . . . Yes, turn that ship around and head for Grants Pass! Full steam ahead! Make a right at the Rogue River, and we'll leave a lighthouse on for you!!!!! HOOYAH!

"You can't lose money taking profits" is an important lesson to learn, SolidAnchor! No one believes me when I say that taking profits is one of the most difficult parts of learning to trade --- until it actually happens to him/her! Thanks for the wisdom this evening. Ahoy!

Future Mogul asks:
I am saddened to find out that A Rich Man's Secret Course has been cancelled and replaced by UTS. If I am not afraid of speaking in public can the course still help me?

at 7:56:21 PM
Future Mogul, it's BETTER than EVER!!! A Rich Man's Secret Course is still available online at Four Star Books --- it's just in a different form now (and is actually a FREE BONUS at Four Star Books online! Call Donna or Patti for details). Everything's good (and I hope to be welcoming you as our newest "inner circle" Member of my UTS Course)!

Debbie asks:
Debbie in Ontario, Canada Hi Ken, I have started reading Ted Warren's book, How to Make the Stock Market Make Money for You. I have read the first four chapters and I have already learned so much. Thanks for four star books, its a real winner.

at 7:57:09 PM
Thank YOU, Debbie! (Yes, Mr. Warren had some great experiences in Canada too, didn't he?!)

jumper asks:
Hi everyone: Opened an account to start paper trading a couple weeks back. Hawkins! Discernable truth at last. My request, could you draw me a mental picture of the opposite side of the transaction, say when I'm liquidating an option that's in the money? I just need a little help with understanding what the person who wrote or sold the option deals with at close of business. Thanks for all you do, Phoenix, AZ.

at 8:00:23 PM
The person who sold (wrote) you your option takes on UNlimited risk --- just the same as holding a futures contract. So s/he sees that loss mount in the example you give, just as you would IF you were on the wrong side of a futures contract.

Nelson asks:
Ken, this is Nelson in Austin, Texas. Just joined your program and started trying to paper trade today. Is there anyplace on the Online Charts where I can just click a button and see how money I've made or lost at the end of the day?

at 8:00:55 PM
Yes, Nelson: See Trade Tracker! (Oh, and WELCOME!)

robert in biloxi asks:
robert in biloxi, when using the S-1 strategy do you wait for days in trend and days in strength rating to be 1&1, or can days in trend be more than one? If more than one how many?

at 8:02:12 PM
Days in trend can be more than one, but the Strength Rating must be ONLY day one.

Jim asks:
Ken... it maybe easy enough to pick a resistance or support point for a stop point on a futures chart...but where can I get an equivalent option price for thoser points?

at 8:03:25 PM
NO ONE can know what any option will be worth on any given day, Jim, so you have to trade your option(s) WHEN a particular price is hit on the Active Futures Month --- take your trading cues from the Active Futures Month! Good question! Thanks!

Debbie asks:
Debbie in Ontario Canada Hi Ken and Team, I am marking formations (trend lines, triangles, wedges etc.) on the interactive charts could you recommend something to read to help a little with seeing the formations more clearly. Thanks Ken for all you do, love all the pictures you post online.

at 8:06:34 PM
Sorry, Debbie . . . What you're asking for is a "template" to place over your charts, and that just can't be done. Charting and spotting formations is an ART, not a science. Thus, Ken's Chart Book! (Thanks for appreciating all the pictures we post --- I love them all too!)

Mike in NYC asks:
Ditto on having a full-service broker. I want a real person who has a direct phone/computer line to the guys in the trading pits. The $50 commision is well worth it, because I always get great fills.

at 8:07:35 PM
(Did you get that, Tom C?)

salvomix asks:
In response to Nestor. I recently entered the market with a small amount of money and have seen great results on lower priced options following 1-2-3 and Hi-Lo. I had previously thought I wanted to trade options more that were more expensive. Now I am thinking otherwise.

at 8:07:54 PM
!

azjoe asks:
Hi Dr. Roberts, I had my first Cuban this weekend in Mexico. I'll never be the same. Do you feel Mexican cigars are as good as Cuban?

at 8:09:39 PM
(Hey! There's a nice ring to "Dr." Roberts . . . I like that!!! Just call me Doctor Quack!) Yes, some Mexican cigars hold their own compared to Cuban cigars --- Te Amo is a great one . . . .

Bonita Joe asks:
Ken - Bonita Joe here....it is refreshing to read the new comers and all the great feelings that we get when we make money. Keeps the memory green ! Thanks Ken.

at 8:10:15 PM
Hi Bonita Joe! Did you dodge Dennis down there in the Keys? Hey --- what say you re: Mexican cigars?

John asks:
What is the market for commodity options? Are they listed on any exchange?

at 8:13:00 PM
It's HUGE John --- and growing geometrically! Major option exchanges in the U.S. are in Chicago and New York (not to mention the international exchanges).

Well that's it for another month. Check out my favorite web sites:
www.tovionline.com (Have you taken my personal tour yet?);
www.uschartco.com;
www.fourstarbooks.com;
www.historictrees.org;
www.billoreilly.com;
www.wildlifeimages.org;
www.salestax.org (Let's abolish the IRS!);
www.LP.org
(Take The World's Smallest Political Quiz and see where you stand!);
www.VOTE.com

(Make your voice heard!).

My next chat will be Tuesday, August 16th.

As always: Use these newfound powers only for Good. Good night, God bless, and watch where you step!

Now's the time to make calls and send emails! Support the two FairTax bills in Congress now that will abolish the IRS, eliminate inheritance taxes, and flush out the underground economy!!! (And what a gift to leave our children and grandchildren!)

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