Let's Talk Trading (tm) with Ken Roberts
from September 9, 2003

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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 Cuban Esplendido fired up, here’s our plate of freshly baked macaroon cookies, the coffee’s poured, so let’s 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.

macho trader asks:
Redondo Beach, CA: Ken...I am short two Nov Feeders from 89.60 and bought two Nov 94 calls at the same time. Feeders closed today at 96.375 so my options are in the money and I can suffer no further losses from this point even if feeders goes to 300. However I noticed that my discount brokerage has not reduced my margin requirement on this trade (they are still charging me FULL margin as if I was naked on those two contracts. I discussed it with them at length and they seem to agree with me in principal but said that they can't do anything about it because margin is calculated by a computerized service called "SPAN" which they do not have control over. They said this SPAN margin calculation is the industry standard. I started looking for a new broker yesterday. My question is, Have you heard of "SPAN margin calculations" and is this the way all brokerages calculate margin requirements? Thanks.
at 6:11:11 PM
Nice trade, macho trader! You're living up to your name . . . . Yes, SPAN (Standard Portfolio Analysis of Risk) is a software program run by the Exchanges and I think most brokerages subscribe. I'd still keep griping, but in the meantime, keep counting those profits!
Wal asks:
Hi Ken, Given the recent run in the cattle market, I have been looking at TOVI to help me find a "high value" option. However, I've noticed that the premium for the higher value options are almost $2,000 per option. I was wondering whether you thought that this was too much to pay, or do you follow TOVI and just purchase the options regardless of price because it indicates a good value.
at 6:14:45 PM
Yes, Wal, I'd go with whatever TOVI says because "value" is based on its exhaustive evaluation of many, many factors. I know that seems expensive to those of us who are used to finding "cheap" options, but you'll typically find that these high-priced, best-valued options are also in the money, so that helps a bit. Great question. Thanks.
I know we'll get around to discussing TOVI this evening, so let me ask you a favor: I'd love to hear how you're using TOVI and what your "TOVI technique" is. Please share with us (in as few words as possible!). Thanks!
MadMaqs asks:
Good evening Ken, I'm short December Wheat and I've calculated the daily 50% at 347.25 and the weekly @ 328.25. Am I anywhere close to your 50% levels? Thanks for holding these chats and giving us the opportunity to pick up these tidbits....
at 6:17:07 PM
Right on, MadMaqs! Those are the figures I get too.
option asks:
ken whats your take on the feeder cattle outlook is this a good time for buying puts?
at 6:18:22 PM
I'm short (and losing) right now in Feeders. Yes, I'd look for puts.
David asks:
Hi Ken, Do you think Sugar is going to bottom out at the last weekly low?
at 6:20:46 PM
I'm currently short Sugar, David, so yes, I hope it drops to those lows! TOVI currently rates Sugar long-term as "Neutral" and short-term as in a moderate downtrend. Sweet!
Scotty asks:
Hi Ken from your experience if cattle does break to the down side do you feel it will it try to retrace and test the highs before correcting to the 50% weekly/Monthly.Thank you Scott
at 6:21:35 PM
Yes, Scotty, that's typically how markets change trend (a la the 1-2-3 formation). Thanks!
Hydro Power asks:
Hi Ken. I plan on getting your GAB course, but in the meantime, how do I determine profits/losses from an exercised option?
at 6:22:32 PM
An exercised option means you're now holding a futures contract. So simply compute today's settle price to your futures contract entry price.
virgil christensen asks:
Would you recomend small accounts to use mostly option trading?
at 6:24:00 PM
It all depends upon YOU and YOUR circumstances, virgil. But let me say this: Paper trade first and I think you'll discover that you can be successful with much less money than you might think!
LuckyGuy asks:
Hi Ken Porteno1 from Sherman Oaks here: Before the question I want to thank you once again for sharing those “Pearls of Wisdom” with us (my wife and I) and for everything that you do, you know I feel the luckiest guy in the world just for knowing you. Lets say I have 4 calls for whatever commodity and they hit my respective 50% and for some reason I can’t call my broker and when I do it the next day I found out that they when up many times more $12000 each! What order would you put, a limit order? Market order? If you use a limit order chances are that they will start coming down before you even talk to your broker!!!!!! Market order then? I don’t like it! What do you do??????? From the bottom of my heart thank you! Any chance you’ll come to Los Angeles? Hey we MISS YOU!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
at 6:27:17 PM
Sherman Oaks! Right next to Encino (where I was born and grew up)! Thanks! Yes, here's how to solve that: Don't place ANY order on the trading floor. Rather, give your broker what I call a "silent" order. That is, tell your broker that you wish to liquidate your option when your chart target is hit and let him/her carry that out. Yes, I'm sure I'll visit LA again. Stay tuned . . . .
Dano asks:
Hi Ken! In your personal trading account, have you begun shorting feeder cattle yet? If so, which month's and do you plan on adding short positions if the price keeps rising? Your response would be greatly appreciated. Thank you.
at 6:28:27 PM
Yes, Dano, I'm short Oct. Feeders from 90.40. Yes, if prices rise more I'll probably add more short contracts. Thanks.
Angie asks:
Hi Ken: Just new --want to watch and learn tonight,. Angie
at 6:28:41 PM
Thanks, Angie. Welcome aboard!
Sharp asks:
HI Ken, Tom & Dennis here from Orlando Fl. Both course grads and making money! Here is our question. We have a March 150 Coffee call. and it's starting to move. Coffee closed at 73.3 today. Now, we understand we own a 150 call however, if you look at the PUT'S a 150 is 28,800.00 ! How can there be a 150 call and a 150 put worth so much money? Coffee is @ 73.3 a 150 would be a CALL! This is driving us nuts! What's the deal? When you coming to Orlando? Traders and brothers Tom & Den
at 6:31:08 PM
Thanks Tom & Den. I just got real close to Orlando last week (Jacksonville and St. Augustine!). Great question, and the answer is, the 150 put is WAY in the money (76.7 cents in the money)! Isn't this business fantastic?!
zany asks:
do you chart all the commodities there are,or just a specified few
at 6:31:38 PM
Just what U.S. CHARTS follows!
afs54321 asks:
What's the difference between "futures" and "commodities" - it's quite confusing when I read about options trading...:(
at 6:32:41 PM
Well technically, "commodities" are the actual physical item (corn, cattle, orange juice, etc.) and "futures" are the CONTRACTS controlling those physical commodities. Hope this helps . . . .
bigm asks:
AM I IN THE WRONG PLACE FOR ATHE CHAT
at 6:32:59 PM
Nope. You're in exactly the right place for the chat! Welcome!
Weston_tycoon asks:
Hi ken!! Thanks for these Great chats! I have a question about the Platinum market I wanted to get in but there are no options trading other than Oct. Does the platinum market have a liquidity problem? and how would you captalize on these record highs??
at 6:35:15 PM
We're not at record highs yet (see a Platinum Monthly chart). And yes, platinum is rather "thin" meaning not a lot of people trade it compared to Soybeans, Corn, and Oats for example. But this doesn't mean to avoid this market. As long as you have your contract or option, that's all that matters. You then have an agreement with the Exchange which is about as good as it gets. Thanks for joining us this evening.
Janice asks:
Hello Ken, This is Janice in western NC. I know this question is gonna show ya just how "green" I am to commodities trading. LOL What I would like to know is, when an option has gotten into the money, and it has reached my "goal price" how can I be assured that I'm going to get my money? I know you have to have an option available before you can buy it, so who is gonna buy/pay for the option I have when I'm ready to "cash in"? By the way, I'm still looking for the coffee to 'Shoot to the moon". Is it still gonna go? It made a nice jump yesterday. These cool mornings here in the smokies are ideal for coffee drinkers! So drink up!
at 6:42:44 PM
Hello, Janice. Just got back from Charleston, SC. You sure are having some heat/humidity in the South . . . . Yes, we all wonder where our money's going to come from when it comes time to cash out of a profitable option. Don't worry --- it's there! Those who purchase what we're selling are either 1) Wanting to enter the market we're exiting, or 2) Those hedging losses in futures contracts. Think about this awhile . . . . (Yes, I'm still REAL bullish on that Coffee market, so drink up!)
slower asks:
-from estacada,oregon-thanks for the good things you do Ken- i have had TUMPMM1 and TWMPMM 2 now but fell away for too long, just getting back into the studies of them; my Q now is, for my best new start what would you recommend for me to get going anew- thanks much
at 6:44:12 PM
The Greatest American Business (GAB) Course. Just call a Course Counselor. Thanks, and welcome back! (Come on down and see us here in Grants Pass.)
lm asks:
LM, I have 15 march corn options, 2.80 strike at 1.5 cents. I'm looking for a profit goal. what are your thoughts?
at 6:46:56 PM
The old front-month high of 268 would be my next profit-taking target. You're doing great, LM. Your options closed at 5 cents today!
Little D asks:
Is this the KC (Coffee) break out? Where do you take profits, if this thing really exploded? The 50% retracement is about 180. Is that were you'll take profits?
at 6:47:45 PM
Most of them, Little D, but I'll still hang on with a few contracts and try to catch more price movement. This could be it . . . .
ML asks:
Which cattle market do you think is a better opportunity right now?
at 6:50:57 PM
Great question for TOVI, ML! Looking at its Long-term Market Rankings, TOVI says Feeder Cattle the ONLY one of these two markets to trade right now. (See how easy that was?!)
SCS asks:
Ken, what's your take on bellies
at 6:51:49 PM
I'm looking to short Bellies.
investor asks:
Has the downtrend in the June eurodollar been destroyed? Is there still hope that the eurodollar will break down by March, 2004?
at 6:53:11 PM
TOVI likes Eurodollars to the downside! (Just take a look at Eurodollars' Weekly and Monthly charts --- WOW!!!)
Hydro Power asks:
Regina, Sk. CANADA Ken, it appeared the Nov OJ contract had formed a 1-2-3 bottom, but now it looks like it may be forming a NSC. Does it really matter at this point which it is rather than to be on board to go long?
at 6:54:10 PM
I'd start pricing calls, HydroPower.
pacman544 asks:
Ken, I am new to your course, but like its simplicity. It looks like coffee has been holding in a channel for several months near 70 on the weekly chart and the 50% level would be about 95. The longer monthly would suggest a retrace to upwards of 150. While the daily is holding 70 as resistance, is it time to take some call positions in December or early 04?
at 6:55:06 PM
Sounds like a great plan to me, pacman544 (and go for as much time as you can using options).
Greg asks:
Hi Ken, I remember hearing a couple years back, that the exchanges would soon be offering the ability to pyramid options. Have you heard any more about this, lately? Thanks!
at 6:56:12 PM
Yes I did relate that, Greg, but now that you mention it, no, I haven't heard any word about it. And I'll tell you, it really does help to contact the Exchanges and let them know how you feel and what you want. They REALLY do listen . . . .
tommyboy of oz asks:
hi ken, Hows this for a formula? I read your course, start slow, learn as I go, avoid brokers except for trade executions, take the good with the bad and never stop learning about this WORLDS PERFECT BUSINESS?
at 6:56:34 PM
Perfect.
notsrevel asks:
Hey Ken! I have a few options in Dec coffee and the primiums are starting to mount. Is it wise to buy more during a rise? What is your advice on how to add to my positions while a market is moving as fast as coffee seems to be?
at 6:57:14 PM
Buy on setbacks.
michigan trader asks:
Hi Ken, for those of us brand new to this business. Can you please give a summary of what TOVI is and how do you find out how to use it.?
at 6:59:07 PM
Go to www.tovionline.com and READ about TOVI for now, but I'm frantically working on a fantastic online tour to guide you through TOVI myself. Thanks!
afs54321 asks:
Bentonville, AR : Ken, does TOVI provide monthly and weekly charts, or just daily ones?
at 6:59:47 PM
Monthly charts only (for long-term planning).
Johnny. asks:
Johhny - Toronto. Hi Ken: quick question. (Hope you are doing well tonight): I have just recieved an inheritance and have decided that I will buy another course and subscribe to the U.S. Charts online services. I have in the past had both TWMPMM 1 and 2. You have all new courses almost: WHAT DO I GET FIRST??? Thanks for all you do.
at 7:00:52 PM
Thanks, Johnny. Get GAB (The Greatest American Business Course). Thanks.
Little D asks:
Hi Ken, Do you have any opinions about cotton? The premiums seem a bit pricy verses history. Thanks!
at 7:02:40 PM
I have Cotton futures AND options, Little D. Keep pricing options and those calls will drop in price on setbacks in Cotton's price. Take your time.
Scotty asks:
Hi Ken I am trying to trade like you and have to say cattle has been A WILD ride.I have 28 short positions in addition to options.I have learned a million dollars worth of lessons.I just have to thank you for your simple,clear and concise way of trading.You and your course has taught me so much and your staff is the best. Thank you for my Future (NO PUN INTENDED OF COURSE) :)
at 7:03:43 PM
Thanks Scotty. (After all those words of praise, no one has to beam me up!)
Trips22 asks:
Hi Ken and the gang. Thanks for all your efforts. I want to share my successful trade in rice following your teachings.I got in at 4.50 and got out at monthly 50% at 7.99. Total profit of over $39,000. It was a long term trade. My first perfect trade in three years of being course member. Made up for all the money I lost on all the Coffee calls over the same period plus some more. Thanks, I could not have done this without your help.What is more, is this gives me absolute confidence that the the long term position trading works just like it is supposed to.
at 7:04:59 PM
Thanks, Trips22, for sharing your experience. (See how great those who log onto these chats are?!)
Hogbipe asks:
Hey Ken, how,s that cigar going?
at 7:05:42 PM
I'm burnin' it up, Hogbipe! (What's a Hogbipe?) Thanks!
TraderJim asks:
Hi Ken ....I am a new GAB student. I really am loving this course and learning a lot. I'm begining paper trading this week. In anticipation of putting my education to work with real money; What do you feel are "reasonable" commision rates for options trading?
at 7:07:03 PM
As long as you're getting full and competent service, I'd say the $65 range is reasonable. Thanks.
Camaroguy asks:
I have 2 March04 Coffees at 66.00 and 4 Dec 140 calls I've been holding awhile. I thought Brazil was just entering it's spring right now (you said this in last month's chat) since we are entering fall right now. Even though you don't trade on fundamentals, you can't deny the effect that an extreme fundamental driver would do, such as a big freeze. Isn't this what was always responsible for Coffee's historical big jumps? The current time of year would seem to me that danger is leaving at this time. Coffee just broke out of a wide downward trend. It looks like it could go higher, but I don't want to lose the profits I already have.
at 7:09:17 PM
Take some profits if you like, Camaroguy, but I surely would NOT be caught without some Coffee! (I promise: It'll take off when most people LEAST expect it . . . .)
wagnernumber81 asks:
hey ken....whats your long term outlook for gold...it has made a nice run, but do you think there is a lot of upside over the next several years?
at 7:09:57 PM
Yes: Take a look at Gold's Monthly chart!
Big Bucks Danny asks:
Hi Ken, Gang: This morning I sigmed up for the U.S. Chart Co. on-line charts. It's been three weeks since I opened up my brokerage account and I felt that during this time with open positions in options in Coffee, OJ, Wheat and Rice, I was literally flying blind trying to use the charts provided by my broker on-line. They are for the birds. After Jeff's "Tour" of the U.S. Charts I signed up this morning. I am thrilled. Thanks, Ken for the extra mile in service.
at 7:10:36 PM
Made my day. Thanks Big Bucks!
GotCoffee?? asks:
Santa Clarita, CA: Ken, As I learned from your TWMPMM 2 course, "always go for time when buying options". Well, I bought a May 2004 Coffee 140 call option at 60 points a couple of weeks ago. I knew that this was a "cheap" option from watching my charts. It's now worth 113 points as of today, and hopefully coffee is FINALLY on a long uptrend towards the weekly 50% of 179. Since coffee hit the front month 50% today, I'm holding onto this for additional profit. If this is just a short term rise, on any reversal down between October to December this year I'm looking to buy a Sept. 2004 120 to 150 call for between 40 to 80 points. No matter when "the big rise" occurs, I'll be in coffee with a few options!
at 7:11:42 PM
Sounds like a great plan to me. Great goin'!
nyc kidd asks:
do you recommend mini contracts for new/small account traders i.e virgil c. question?
at 7:12:17 PM
Only YOU can answer this, nyc kidd. Try paper trading them . . . .
DPK asks:
i really like listening to your companion pak by Ernest Roseman. I know it was recorded several yrs. ago, but was wondering if Mr. Roseman still has his company.
at 7:13:33 PM
No, he's retired in Beverly Hills now. I tried to get him on the Tools of the Trade video set, but he was ill that weekend and just couldn't make it. Glad we've got his wisdom in that Companion Pak, however . . . .
Bonita Joe asks:
Dear Ken - I know what a "Fast Market " is from what is going on with the trading floor, but how do you treat those markets when you want to either enter or liquidate and your order is a Limit Order, but is basically treated as a Market Order. Sit and wait? Go ahead and put in a Limit Order anyway? I also know it is a "tool" for traders to get investors excited and to think they are going to miss out if they don't make a move. Thanks for ALL you have given in knowledge and how to "get it" through patience and paper trading. Buying my 2nd BMW because of your teaching! Want to RACE???!!! Bonita Joe
at 7:16:48 PM
All I can say is, I ALWAYS used limit orders (unless, of course, the Exchange won't or isn't allowing limit orders at that time. This is where a competent broker comes in . . . .). I just sold my 750il BMW, but that was a great car. Thanks!
tmbrady77 asks:
Ken, I'm nervous about getting started with trading.. Which book from 4-star books can help a person like me the most?
at 7:18:10 PM
Try any James Allen book!
Scott--Ft. Worth asks:
Hey Gang! Smoked a nice Ashton VSG today. Nice, but not like your Cohiba. Bought 10 May '04 120 coffee calls for 80 points. It seems more prudent for me to wait until the weekly is hit before liquidating half and then waiting on the monthly for the rest. Any thoughts? Also, I am a little disheartened by the big move back up in Eurodollars. I have 100 Dec. '03 9800 puts(1 point), and 100 Mar. '04 9800's(2 points). September's are about to expire. This market seems so artificial, I doubt my mental toughness to hang on for a really big move should it occur. Please advise. Thanks!
at 7:22:06 PM
Hello Scott. Those Ashton VSG's are great cigars! (Just smoked one in Charleston a couple of weeks ago.) My trading style and inclination is to do as you suggest: Take some profits at Coffee's Weekly 50% target (92) and hang onto the rest for a Monthly 50% (179). Use Eurodollars' recent drop as ENcouragement: It'll do it again!
Moving On.... asks:
Ken, at one point you said you were procrastinating about getting going. I have started a new career, which consumes most of my waking hours. It is hard right now to focus properly on options trading. Any suggestions? (I have taken both the TWMPMM and GAB courses).
at 7:23:20 PM
Just carve out 15 minutes a day to study/paper trade/learn. You'll be amazed at what this discipline and small amount of time will generate . . . .
mysticpath asks:
Mysticpath from Portland, OR. Hi Ken....feel like I know you from your video's and training materials and RMS line. I enjoy your humor. Thanks for helping each month with this chat. I've read archives, but tonight is my first night joining. My question. When hedging a future trade, does the option need be in the same contract month? What risk is there is it's a different month hedging with? Thanks!!
at 7:25:45 PM
Technically, yes, the option and futures contract MUST be of the same contract month in order for the Exchange to acknowledge this as a hedge trade (and possibly give you credit on your margin requirement). Practically speaking, you could trade different months, but this wouldn't be considered a true hedge trade.
Doc Com asks:
Hi Ken. My order for 10 short contracts in feeder cattle was filled in two steps... that is 8 contracts at one price and 2 contracts at another price. Does this reflect anything noteworthy?
at 7:26:44 PM
Nothing, except the market was likely moving rapidly when your order(s) were filled. Fall, cattle, fall!
Tom R asks:
Any ideas on a good spread trade in soybeans?
at 7:27:35 PM
Yes: Mash up a bunch of soybeans (have you ever seen one?!) and spread it all over a piece of toast. That's the only spread I'd use.
Alan asks:
Hi Ken, Loved TWMPMM1. I'm long December coffee from 64. Do you expect a retracement to the weekly 50% level?
at 7:27:53 PM
I sure do!
HARRY asks:
HARRY ASKS IS IT NECESSARY FOR THE BROKERS TO SUBMIT THE VARIOUS PAGES OF LEGAL INFORMQTION ? iT WOULD TAKE AN ATTORNEY TO READ AND UNDERSTAND ALL THE TERMS ECT. PLEASE OFFER YOUR OPINION. THANKS.
at 7:29:00 PM
Who do you think wrote all these reams of documents, Harry???!!! But to be fair, it's because America is so sue-crazy nowadays. Everyone has to protect him/herself.
DREAM CATCHER asks:
HI KEN,VANCOVER ISL. B.C. PURCHASED 2 MARCH COFFEE 145 CALLS.COST INCLUDUNG COMIS 265.00. PER OPTION WOULD YOU LIQUIDATE 1 CALL OPTION BECAUSE TODAY IT EXCEEDED THE FRONT MONTH 50% OR WOULD YOU WAIT SEEING IT SEEMS TO BE RISING RAPIDLY.THANK YOU AGAIN FOR ALL YOUR HELP AND YOUR C.C.
at 7:29:49 PM
Stick to your original plan, Dream Catcher. This is where second-guessing takes its toll . . . .
helenoftroy888 asks:
Hello Ken, I'm looking at the OJ weekly chart. There was a high in late '98, a low late '00. Since then it's been back up above 99, which is the 50%. Does it change your assumptions knowing that retracement has been made once? Thanks.
at 7:31:29 PM
You'll have to "look larger" than OJ's Weekly chart now, since its done its 50's. Now look to the Monthly for the Big Picture. Great question! Thanks.
michigan trader asks:
My wife and I do this together and really enjoy it. We follow the teachings from TWMPPM1 as much as we can. We are watching Nov. Orange Juice. Today the front month was negative? Is this an indicator that the back months may follow into negative territory? This is our first chat session. Love it!
at 7:33:08 PM
I'd have to say "yes" to that, michigan trader(s), since I consider the front-month contract to be "the driver" and all the other months to be "passengers." Thanks, and welcome aboard!
Stan from Illinois asks:
Live cattle has broken above the 85 all time high. Since it broke above this resistance point, would you still be buying put options?? Or, do you think it will explode higher?? Thanks for all the help and courses. Stan from Illinois
at 7:33:40 PM
It could explode higher, Stan, but I'd be pricing put options now. Thanks!
afs54321 asks:
Ken, what's "NSC" ???? It wasn't in GAB course...:(
at 7:34:15 PM
Narrow, sideways channel (yes, you'll find it in GAB).
Maui-now asks:
Hi Ken, I read your course and am now looking for a broker. Most I talked to told be to stay away from the Commodities market. One commodity broker did call me but he wants me to open an account before even disucssing paper trading with him. Do you have any suggestions where I can find others to shop around some? Lahiana, Maui, USA
at 7:35:07 PM
Yes, Maui-now. Call one of my Course Counselors tomorrow! Aloha . . . .
TahoeClay asks:
Hi Ken and Crew: I got my TOVI subscription after last month's chat. I am learning a lot about budgeting using the budgeted option search. (really awesome!) I am learning to not be toooooo cheap, if that is possible, realizing that some of the options that I shop for are not really a good value, and so I have upped my ante and yes in some cases I can't afford to buy my options in pairs. With the higher value though I am confident that the volatility of the markets I will be making some $$$$.
at 7:36:03 PM
Great, TahoeClay! Yes, isn't TOVI terrific?!
techie from the bay area asks:
Hi Ken, I noticed that in your last chat you had predicted that feeder cattle might go to record highs and it did happen. Just curious, since you dont pay any attention to fundamentals like the ban on Canadian beef, what was the basis of that prediction? Thanks!
at 7:37:15 PM
I am sworn to secrecy . . . .
jorge asks:
I first bought the course TWMPMM 1 two years ago and unfortunately did nothing with it and an now trying to get back on. Is TWMPMM 1 still the only course you need?
at 7:40:52 PM
Yes it is, jorge. Just call a Course Counselor and get a Restart Kit. Welcome back!
chart farmer asks:
Hi. Just a note to other newbie traders. I completed TWMPMM and started trading 2 years ago then opened an account and have been 'real trading' contracts for 1 year. My $5000 margin account has been less than $2000 at one point but currently is at $6000. I'm proud of 20% growth after my first year of trading. The losses were pretty discouraging but you sure learn a lot from a failure or two! I know I will have other losing trades but I also plan on winning some too. Don't give up, watch your resources and remember what you've learned. It works for me.
at 7:41:40 PM
Thanks, Chart Farmer. Well said (and congratulations!).
AC asks:
Hi Ken Thanks fo sharing with us this comoddities business. With some patience and a buy low sell high strategy, I made $26k on Rice Futures. This now give me confidence in trading other markets and eventually with more volume. Thanks again and may God bless you and you family.
at 7:42:06 PM
Thank YOU, AC!
jorge asks:
Do you recommend TWMPMM 2 or the GAB course (mind you I have yet to begin paper trading and just read TWMPMM 1 for the secind time in 3 years)
at 7:42:52 PM
Paper trade with TWMPMM 1 awhile, jorge.
Glenn asks:
Hi Ken! This is Glenn from Palm Desert. I'm short two Nov Soybeans and two December Soybean Meals. Is this foolish? Or should I hold on? I was hoping for a daily retracement on each of these. Thanks for the chats! I really appreciate them.
at 7:44:07 PM
Both will retrace, Glenn. So it's now just a question of whether or not you can hold on (financially and emotionally). Welcome to trading! Thanks for logging on tonight.
VELIRO asks:
Hi Ken, Want to let you know I bought 2 Dec.Wheat 440 calls @ 1 and 1/2 on April 25th; liquidated one on August 12th @ 6 and the other on August 18th @ 9 and 1/2 - Made a gross profit of $775 on my first option trade! I'm now pricing March Wheat 320 puts - What other business can you make money going up and make money going down? Thanks for all of your teachings, p.s. never had to call course conselors, just followed my online charts and read all the chat archives. Thanks Again Ken!
at 7:45:04 PM
Fantastic, Veliro. Thank YOU!
tlgurule asks:
Hi Ken & staff. Wanted to let you know I just made a profit of $500 in corn thanks to you. I could probably made more but got cold feet & took my profit. I am now watching cattle & shopping for puts. I get real confused, what is the difference between "live cattle" and "feeder cattle"?
at 7:45:51 PM
Glad you asked, tigurule! Live cattle is dead and Feeder cattle is alive!
Okietrader asks:
Soybeans and cattle have been very good to me lately. I got a little greedy when rice went up and got bit in a downturn. But now I'm way up on my account. Thanks for these chats and all the help from the course counselors. I was going to trade Feb. Pork Bellies but didn't because of the trading volume being low. I assume the volume will pick up as we get closer to Feb. ?
at 7:46:47 PM
Probably, Okietrader, but I never let that deter my trading. Sounds like you're doing great, so stay with it!
snmontana asks:
Hi Ken: I took TWMPM in 1994, TWMPM 2 sometime after and GAB this year. Thank you. I have always done well when following your courses, alert lines and newsletters. I then get distracted by all the other "information and analysis smog" that flies around, get "too smart" and start muddling along. What disciplinary and mental tools would you suggest to stay true to a Ken Roberts based trading plan? I know I can do well with your methodologies, how can I stick with them??? Thanks for all your courses, work and your staff's courtesy, helpfulness and knowledge.
at 7:48:11 PM
You're very kind, snmontana, and thanks for your input. I think the best "tool" is paper trading.
TahoeClay asks:
Hi Ken and Crew: On 9/2/03 The Dow finally hit its monthly 50% of 9510!!! I did a little dance and got to say "I knew it would hit 9510!!" I couldn't afford to replentish my 95 calls in real money, they never hit my cheap price, so now I learned another lesson in not being too cheap and some more in budgeting my capital.... The TOVI Budgeted Option Search is awesome, I wish I had had it six months ago. At least I was right again, love it!! Thanks for all the courses!!
at 7:48:41 PM
!
happy girl asks:
Seattle WA. Thank you Ken for these wonderful chats. They help me a lot I know my future is going to be secured. I am on Dec wheat, waiting to make my first profit.
at 7:49:04 PM
Good goining, happy girl. Thanks!
kevin asks:
Who and what created TOVI and how does it compare to your old way of trading options? Thanks Ken.
at 7:50:30 PM
What's not answered on TOVI's website yet will soon be when my TOVI Tour's finished. (Check out www.tovionline.com)
helenoftroy888 asks:
Hi again, Ken. You pointed out in the last newsletter that the grain markets tend to move in similar formation. Is that true of other categories as well? Thank you.
at 7:53:45 PM
It's not to trade by, helen, but the meats TEND to trade alike, so do interest rates, and the meats. Just look through a set of price charts and see what I mean. Thanks.
hoby asks:
hoby; from,tallahassee fla i have been paper trading tovi and i am up 42,000.00 dollars with an imaginary 10,000.00 and i started with real money yesterday. tovi is an exelent tool. i used to think a saw and hammer were the best tools in the world but i am here to tell you that the tools i have recieved from you are the best!!!! THANK YOU KEN ROBERTS
at 7:55:03 PM
Hi, hoby. Thanks! I just drove through Tallahassee last week on my way from Jacksonville to Mobile! Hot and humid!
canadian coffee gal asks:
Hello, Ken, from Ontario, Canada. I am watching OJ and Coffee, been paper trading successfully for six months, aiming to start buying call options in these two markets soon. Just wanted to clarify - are you currently buying these options? Thanks in advance for all the successful REAL $ trades that I'll be making soon!
at 7:56:02 PM
I've ALWAYS been in Coffee, canadian gal, but I'm currently "flat" Orange Juice (not in it).
fathog asks:
From Florida, The 18 month wait on rice payed off nicely (31k+). Question, I'm completely out. should I look to get back in at a retracement or look at other markets? (I'm in 9 other markets). I DO like your long term techniques. I'm up over $100K on YTD cashed out positions. Thank you so much for showing me the light :)
at 7:57:25 PM
You might look at Rice puts now, fathog. Good goin'!
kevin asks:
How many cigars do you light up in a week?
at 7:58:27 PM
It varies, Kevin, but I try to AT LEAST abide by my best-ever quote: "A day without a cigar could have been a better day!" (Great question . . . .)
Chrisbee asks:
Ken, I can’t thank you enough for the life changing lessons you and your team have taught me. Before I was introduced to you and your company, I had never heard of commodities. Now I could not imagine life with out the opportunities that commodities trading can provide. Since trading real money, I have earned and lost, however, with each trade I continue to grow and mature. I am sure over the years you have had many people thank you for the way that you have changed their lives, but sincerely Ken, a nominal fee for TWMPMM one, knowing what I know now, I would have gladly paid 10x’s the amount. I hope that I get the opportunity to meet you and thank you face to face. Sincerely Chris S.
at 7:59:16 PM
Thank YOU, Chris S. Come on out to Grants Pass and visit my Trading Lounge!
hoops asks:
Ken, what's your take on lumber?
at 8:04:58 PM
Sorry, hoops, no knotty questions here on the Chat. I wood knot go out on a limb to respond to such a bore-ing question. I'm resisting the urge to bark at you for going against the grain and leafing everyone else here on the Chatline to pine. I want to branch out into the sky, not walk the plank and just hammer on you! Not trying to be a sap and pitch you a line, but really now, stop milling about . . . .
TahoeClay asks:
Hi Ken and Crew: I have finally got my wife to trade a paper trade account with me. This is Great! Now I get to teach the principles I have learned, and learn them even better!! I wonder what I was doing before I learned to Trade options....Thanks
at 8:06:54 PM
Well you really nailed that one down, TahoeClay! Thanks . . . .
Good night, God bless, and Watch where you step!
Well that's it for another month. Here are my favorite web sites if you're interested: www.tovionline.com (Watch for my upcoming new personal tour!!!) ; www.uschartco.com ; www.fourstarbooks.com. ; www.historictrees.org. ; www.billoreilly.com ; www.wildlifeimages.org; www.LP.org. My next chat will be Tuesday, October 7th. As always: Use these newfound powers only for Good. Good night!
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