Let's Talk Trading (tm) with Ken Roberts
from September 13, 2005

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World's Greatest Business
Skip Barber

Trading's a LOT like learning how to master the Skid Pad at the Skip Barber Racing School's Car Control Clinic . . . . (I'll email you the discovery I made sometime next week.)
Hey Ken,

Here's a story I thought you'd enjoy.

I've been taking your course and actively paper trading for about three months now. To supplement the knowledge I've gained so far, I recently picked up a copy of the new edition of George Kleinman's book. I started reading it and before long I was thoroughly doubting myself. Kleinman, a long-time futures veteran, was talking about spreads and straddles and butterfly formations and option writing, and I started to wonder, "Have I not learned anything in three months of daily studying?!"

Then I got to page 120, entitled, "The Advanced Futures Trading Course (or How to Analize the Markets Technically)." Bracing myself for yet another lesson in how much I don't know, I started reading the chapter. Guess what. The techniques Kleinman teaches are almost EXACTLY the same ones you teach in your Course.

Sure, the terminology is sometimes different. But the basic formations and trading strategies were nearly identical. And this is coming from someone who was once one of Merrill Lynch's top ten commodities brokers worldwide.

And thanks to your course, Kleinman's "advanced" course in technical trading was already as familiar to me the charts in the WGB handbook. It just goes to show you that if you patience and persistence, and put in your 15 minutes a day, your knowledge WILL grow, whether or not you know it's growing.

Thanks for the Course,
Adam, Washington, DC


Many thanks to you too Adam!

Great story, yes?! And now I'll let you get to last night's Chat Archive . . . .

Ken

No More IRS Friends I Never Met Rich Man's Secret Day with a WGB Counselor
NOTE: If you no longer wish to be notified of our chats, please go to chat.kenroberts.net, scroll down the page, enter your e-mail address in the box provided, and then click the "Remove" button located below the box. If you would like to report a change in your e-mail address and continue receiving notification of our chats, simply delete your old address as outlined above, and then enter your new address.
Copyright 2005 - The Ken Roberts Company

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 Robusto fired up, heres our platter of Krista's freshly baked Over-the-Top cookies, the coffees poured, the computer's working, 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.


Duce asks:
Ken I have been paper trading for about a month and I plan on going live Oct 1. I wanted to know what exactly is the 50% retracement method and how can you use it to trade.

at 6:16:31 PM
Hello, and welcome, Duce!

The 50% Retracement Rule is one of the most powerful trading tools I've ever found (and I'm not alone)!

Before you "go live," be sure you know and understand working with it! (And be sure to call a Course Counselor if you need further help.)

We're VERY CLOSE (really!) to launching my brand new 50% Retracement DVD, and I'll post a preview of this after your question appears.

I'll also post a link to a StarBurst that describes a fantastic book I found that's newly available at Four Star Books. It's titled "The Trading Rule That Can Make You Rich."

Stay in touch, Duce!
Sneak Preview 50 Percent Retracement
Jack Sladky asks:
October Sugar moved beyond its contract high 2 days ago. According to WGB, would it have been correct to paper trade a call option the day after it went above its contract high?

at 6:21:45 PM
Yes, Jack! The day after Sugar's Active Futures Month CLOSES over that old high.
Mike in NYC asks:
Ken: I read your novel A Rich Mans Secret again this week. First read it a few years back. It always inspires me achieve peace of mind with myself and others. More importantly, it helps me to trade Price Trends as they are - in the charts, not how I Think they should be. Thanks for this trading tool it has me be more profitable. By the way, was Clement Watt a real person, or just a character in your book?

at 6:25:30 PM
Thank you, Mike, appreciate that! Yes, Clement Watt's as real as I am!
Jack Sladky asks:
Got a call from a broker who wanted me to do a 6 cent 'spread' ... selling put options and buying call options. I didn't listen much because I didn't understand what he was talking about. Is such a system worth while or is to too complex to even learn it.

at 6:29:38 PM
If you want to write options, Jack, I'd recommend (because I use it!) learning and using TOVI's brand new "Vertical Spread Trade" Tool. (See www.tovionline.com)
sharon asks:
Hello Ken' Hello Ken, When placing a bid to buy a option, do you bid half the market price or half the bid/ ask price? Thank you.

at 6:30:59 PM
I ALWAYS like "working the market" by bidding less than the asking price, Sharon. (It's kind of like a sport for me!) And if there's no actual trade price to refer to, and a bid/ask is listed, then yes, by all means, begin bidding at half that spread. Good question. Thanks!
Another Star Discovered
marie asks:
I am new just reading the Manual and am wondering if there are specific commodities which are better when there are little funds to trade. For example..stay away from oil ..

at 6:38:27 PM
No, Marie, paper trade as many as you can! For example, when the market is "calm" (non-volatile), Orange Juice may offer relatively inexpensive options. But when people's attention focuses upon Orange Juice, and volatility rises, those options get very, very expensive.

Another example: Oats is typically a "granny" market. But when volatility climbs, so do those Oat option premiums!

That's why I recommend paper trading all the markets you can, so you can experience what I'm saying here firsthand.

As you progress, and when you're ready, take the TOVI Tour and see how TOVI can help you locate those markets that require "little funds" as well. TOVI takes a LOT of the work out of this for us!
Secrets of the Stars
hoooch asks:
Just want to say that when you contacted me by mail in 1997 and I read and ordered material from you, you were great then. You are out of sight now. Your program is great. Have contacted my broker and am opening an account. No presure from him as he tells me to only invest only when I am ready. Thank you Ken.

at 6:39:59 PM
Thank you hoooch!!! You made my day! Sounds like you've found a great broker! He gave you THE BEST advice!
Duce asks:
I ordered the book "The trading rule that can make you rich" do you have the book you talked about in your booklet I received by Ted Warren "How to make the stock market make money for you.

at 6:40:18 PM
Funny you should ask, Duce . . . .
A Shining Star
Werner asks:
Hi Ken, I bought a 112 call for Feeder Cattle Januar 06. I tripled my money so far, I want to get out by trailing the market price of the future with 3 cents. Is that reasonable or is that too narrow? (I am also a former course member, I just couldn't stay away. With options it is easier to stand adverse movements. I like that)

at 6:43:12 PM
I like that too, Werner! Options are THE GREAT EQUALIZER! Yes, three cents sounds completely reasonable (and I'd also utilize support and resistance points on the Active Futures Month chart VERY NEAR that three-cent parameter).
barney asks:
Ken, I am a full time semi truck driver and have wanted to get started with your course for some time; my wife even got me a membership with you as a gift! Problem is I'm gone most of the time and don't own a laptop. So do I order your books to study on the road? Do you have your books on tape or CDs so I can study while I drive? Also, can beginners attend your camps? What should I do?

at 6:45:57 PM
Hi Barney, and welcome! Thank your wife too --- she's a very smart woman, and you're lucky she married you! Barney, call one of my fantastic Course Counselors tomorrow and chat with him/her about YOUR situation and circumstances. I know they'll come up with a custom-tailored solution to your situation. And be sure to stay in touch!
Ensenada Tom asks:
Hi Ken. I always have an exit strategy before I enter a trade. However, when I read through your chart book I see entries like "if soybeans break X, the next downside target is Y." Rather than having a static exit point (which I always do) is it wise to have a dynamic exit, something like "If beans get to "X" then my exit point is "Y" if they reach "Y" my exit point is "Z"?

at 6:47:52 PM
Yes, Tom, I'd say that dynamic (moving) exit points are more sound than static exit points, as a dynamic point ostensibly allows us to retain accumulating profits. How 'bout it everyone else online with us this evening? What are YOUR thoughts about Tom's question . . . ?
roka asks:
edmonton, alberta, canada Hi Ken, I am making a new beginning in trainng commodities after quite a long hiatus. I must say I enjoy your site and the information on it. I just saw the 50% question and wanted to say how uncannily accurate it is. An excellent rule to follow and know. Too bad time could not be predicted as well!

at 6:48:57 PM
Yes, roka, if we could just nail that "time" element down, we'd rule the world, wouldn't we? Thanks! And welcome back!
the handy man asks:
Ken , Do you still do any live seminars ? The HandymAN

at 6:50:10 PM
None scheduled right now, Handyman, but we have weekend Trading Camps right here in Grants Pass (I'll post some pictures of the two most recent --- and there's another coming up this weekend.) Thanks!
Trading Camp
Trading Camp
tbarnes asks:
Which which chart should I follow the daily, weekly or monthly?

at 6:52:46 PM
I use ALL THREE when planning, tbarnes! Here: I'll post a video link showing me actually doing this . . . .
Watch Ken Trade
richard asks:
this is a first for me being at the chat room. i cannot get any sound is this the way it is supposed to be?

at 6:54:35 PM
Can you hear me now, richard? Wait: I'll talk louder: CAN YOU HEAR ME NOW??? (Just kidding: we're words-only here on the monthly Chats . . . .) Welcome aboard, richard!
chuck asks:
TOVI shows corn in a stong downtrend. I'm curious and interested in far out in time and money call options like strike prices at 280, 300 and even higher from Mar May (or even futher out months). The affordability on some are very attractive. Anywhere from $6.25 to $150.00. Just wondering if the trend changes direction if there could be much profitibility in such low option prices. tanks! Chuck in Kc.

at 6:56:19 PM
Paper trade it, Chuck! Yes, with long-term options, we can wait out small changes in trend, but still get in on the "big run" if one occurs. There's no ONE, RIGHT answer to your question: Welcome to trading! (Don't you love TOVI?!)
nugent asks:
Ken: I was talking to a broker today and he said you can make more money by trading futures instead of options. Why is that and do you prefer to trade options or futures. Thanks.

at 6:58:49 PM
And lots of active traders will disagree with what your broker told you, nugent! It's YOUR business. There are cases to be made for either futures OR options. With options, as you know, you DO have an absolute, KNOWN downside risk BEFORE you enter that trade, which you cannot do with futures. (I trade both, and sometimes one pays off more than the other, but never in a pattern I can make one general rule of . . . .)
schwanzzen asks:
Hello Ken, glad to be here with you tonight. Onward an Upward. Your trader friend from the East Coast!!

at 6:59:53 PM
Hey Schwanzzen! How's that Aston-Martin doing? Got any tickets lately?
peppertrader asks:
Hi Ken and the gang! I was one of your students at the August Trading Camp and I just wanted to say that Trader Jim and Louie did a super awesome job. I left camp feeling much more confident in my trading skills. I also finished reading A Rich Mans Secret. What a fantastic story!! I will keep practicing what I learned at Trading Camp and continue to try to watch my thoughts.

at 7:01:31 PM
Hi Peppertrader! Big Jim's here tonight too, and he sends a big HI! as well. (Did you find your picture among those I posted this evening?)
TOVIJUNKIE asks:
Hi Ken and crew,TOVIJUNKIE here from northeast Ohio.In your opinion does one become a better trader by specializing in certain markets?In talking w/other traders it seems many believe concentrating on only a few markets and becoming an expert on those markets creates more success than shopping markets and trading the opportunities. As always thanks for all you do! TOVIJUNKIE

at 7:03:34 PM
Hello TOVIJUNKIE! And I can name just as many traders who would disagree --- they trade ALL the markets. Again, it's YOUR business --- learn which way YOU prefer to trade! Thanks!
Mike asks:
Mike Phoenix I have a long position in Soybeans. The Technicals say it's a bear market. The fundamentals appear to be bullish, any advice

at 7:04:29 PM
I avoid confusion by ignoring "stupid news" (fundamentals)! This makes my life MUCH simpler, Mike!
Yevgeniy asks:
Few years ago, I have purchased 'TWMPM' course. It really was an eye opener for what can be done with all the tools learned. I also purchased the Gratest American Business. That too is very helpfull, since TWMPM didn't go in to details with the options. Both of these are great and easy to understand. Thank you for letting people know in simple plain lanquage about this great business. Few weeks ago I got a mailing about ACT course. I am thinking to get it, but was wondering if it contains similar course as TWMPM? Thank you.

at 7:05:49 PM
No, I'd say it's BEYOND TWMPMM, Yevgeniy (it's based entirely on Ted Warren principals and teachings).
Advanced Commodity Trading Techniques
BP asks:
What do you think of Katrina? Where is the market going?

at 7:07:46 PM
Katrina will certainly make certain markets (Orange Juice, Lumber, maybe Coffee, and others) swing and gyrate, BP, but I stick to my charts: They size up ALL facts that apply to ALL markets!
alicia asks:
Hi Ken. I receive the RICH MAN'S SECRET COLLECTION. Are there any other books you recomend for a beginner? And do you have any in spanish. Thank you.

at 7:10:25 PM
Hello Alicia! Yes, A Rich Man's Secret has been published in Spanish too (but we don't carry that version here at Four Star, so I suppose the best way to find a Spanish copy is to Google it!!!). I recommend ALL books at Four Star --- every one is special! --- but just get those that "speak" to you and grab your attention. Thanks again, and welcome aboard!
Scoop Up A Big Dipper of Water
(But Dr. B's Water Book is something EVERYONE should read!!!)
asks:
Hi Ken, I have been trading in options now for about 8 mos.. Much thanks to you & your staff for showing me the way. I'm doing okay. I have some good trades. But I'm having a problem with the money management side. I can't seem to get my account to grow. I was wondering if you have a course on money management & locking in your profits? I'm not sure if I need to change what I am doing? I really haven't lost or gained at this point.

at 7:17:24 PM
I've been asked this question --- and pondered it --- for 22 years! But no, there's no one answer that suits anyone else but me. In other words, it's YOUR business and what's best for YOU can only be determined by YOU! (And isn't this the very definition of "World's Greatest Business"?!) Paper trading is the ONLY way I know to begin to answer this personal question for YOU . . . .
treepartner asks:
Hello everyone--been a long time since I was able to visit the chat. Hope all is going well. Hope to see you soon in OR.

at 7:18:30 PM
Thanks Treepartner! Great to hear from you too! Yes, come on out West!
street trader asks:
I'm sure you've seen all the news about Hurricane Katrina" hitting the Gulf Coast and that has affected quite a few of the markets. But all those effects seem to be calming down a little and the markets will just keep going where they're going anyway. I've wondered how you felt about New Orleans getting hit like that, since I'm aware that you've enjoyed visiting New Orleans on some of your trips.

at 7:19:20 PM
Yes, street trader, it's all been very sad to watch.
Postman Patrick asks:
Ken, Patrick from Lawrence Ks. I'm paper trading with online option course. I'm paper trading 18 markets so far in 2 months. I've liquidated 8 (average loss 250). The others have still kept me about $1700 in the black. Is this somewhat typical... to be wrong almost half the time? Is part of the trick to get out with little loss? thanks...

at 7:23:17 PM
Yes, cutting your losses and letting your profits run is THE "trick" to learn! Good going! I don't know what "typical" is, but you'll even hear some traders say they lose 70 to 80% of their trades, but those 20 to 30% profitable ones MORE than make up for the majority losers. (How 'bout it everyone: Any track records you'd like to share?) Thanks Postman Patrick!
patticakes asks:
Hi! Ken I purchased an oct option $10620 on 3/29/05 following s-1 stratagy in tovi currently up $35850.(this is my paper trading account-but with profits like these I'm ready to try real money!)Thank you Ken, and as you say "onward and upword"..

at 7:24:49 PM
Yes, Patticakes! Good goin'! Congratulations! Keep at it, and keep us posted --- we love hearing from you!
SteveMT asks:
Ken, I'm interested in doing the trading as a full time job in two or three years. Do you have any idea what percentage of people who take your course are able to do this as a living?

at 7:26:05 PM
Only as they tell me, SteveMT, but no "scientific results" I can report. It's funny: When it comes to money, the most out-going people suddenly CLAM UP!!! (Let's see: Hey everyone online here tonight: How 'bout it?!)
esther asks:
ESther NY, I'm new. What length of time do you consider long-term & same for short-term?

at 7:27:44 PM
Hello Esther! Generally, "short-term" means 6 months or less and "long-term" means more than 6 months. Welcome aboard!
TOVIJUNKIE asks:
In reference to Ensenada Tom's question, I use both. If a market I am in is moving in the speculated direction and passes your pre-set exit then the next exit should be used. When I enter a trade I set at least three exit points and make detailed notes on how and why I chose those points. Hope this makes sense, somehow when it is in my head it seem so simple,but on the screen it sound confusing! TOVIJUNKIE

at 7:28:18 PM
Thanks TOVIJUNKIE! (Did you get that, Tom?)
Barros asks:
Hello Ken, I am a beginner in commodities options and I'd like to know which exchange has the best liquidity for options. I am from Rio de Janeiro, Brazil.

at 7:28:58 PM
Chicago AND New York should serve you well, Barros! Welcome, and thanks for joining us this evening!
Medusa asks:
Medusa in Lemoore, CA Ken, do you use Fibonacci levels to help manage your trades, i.e. as possible exit points?

at 7:29:18 PM
NO, NO, NO! Medusa!
Mike in NYC asks:
Nugent: With options, you can get leverage by buying multiple options, still with known risk. Two weeks ago, I purchased (5) 340 Calls in November lumber for $143 each. Today they are worth $605 each, for a Gross profit of about $2,300. If lumber really takes off, they could be worth a few thousand each. For me, buying multiple options is the way to go. Safe but still huge profit potential!

at 7:30:09 PM
Thanks Mike! (Did you get that, Nugent?)
richard asks:
would you ever go against tovi... for example, corn is in a strong downtrend according to tovi.. i feel a call option is the way to go. what do you think

at 7:31:40 PM
No, not AGAINST TOVI, but sometimes I'll enter a market BEFORE TOVI labels it . . . . Thanks Richard!
Trader Rick asks:
Hi Ken. I just wanted to say that I am a returning course member and am having a ball papertrading. Thank you for your clear cut and easy to understand manuals, this stuff really works!

at 7:32:27 PM
Welcome back, Trader Rick (where were you?)! Thanks!
blums asks:
I enjoyed learning about options in the 1999 course. Today, I downloaded the new course manual. Am I going to find a major difference between the trading strategies?

at 7:34:09 PM
Yes, blums: Bigger, Better, and More Plentiful --- come on, jump in!
XpressTrader asks:
Hi Ken, I notice that there is a lot of option trade talk. Is contract trading of minimal interest these days or are both equally traded by you?

at 7:35:30 PM
I trade BOTH, XpressTrader, but with the options market growing exponentially as it is, I believe beginners especially should learn the markets the option way first. Good question. Thanks!
daddio asks:
I've noticed that tt never refers to canola, is there a reason for this?

at 7:37:08 PM
Yes, daddio, there's a great reason the TOVI Trend Tracker doesn't carry Canola: We can't get enough, or reliable, information from the (Canadian) canola exchange!
Yevgeniy asks:
Ken, just want to understand correctly of when to enter the market on the new high or low. If a certain contract makes a new high, or a new low I would enter after the contract made new highs for two days in a row? Day three would be my entering point. Is it correct? Thank you.

at 7:38:52 PM
That's incorrect, Tevgeniy. Your trigger is when the Active Futures Month price CLOSES over/under the old high/low. Your entry is the following trading day.
Duce asks:
Yes I have been paper trading and my average winning trade is $784 and the avg losing trade is $238. My goal is not to get emotional about a losing trade once I reach my predetermined loss I liquidate the position. By the way is it hard to liquidate a losing position in the real world. Because the market is a 0 sum game for every winner there is a loser.

at 7:42:23 PM
You're doing great, Duce, and sticking to your plan! I know: it's hard to imagine that someone would buy what you want to dump, but that's exactly the way the markets work! (Remember: Someone else may actually WANT to "lose" money on a particular option because he's HEDGING . . . . Just as you WANT to "lose" money on your auto insurance policy!!!)
CHARTECH: asks:
Answer to E T question. I use support and resistance points and trail with stops. I dont set exits I let the markets do that for me. I would have let it cheat me many times over if I didnt let the markets work. But what ever works for you that is what counts. As to all the storm damage remember what Jim Rogers said it take time to bring it on line supply and demand. Look at corn drouts every where it is in a strong down trend.

at 7:43:04 PM
Great input --- thanks CHARTECH!
Super Star Investor!
bunun asks:
ey bunun from florida, i purchased your course 6 years ago when i was 16 and enrolled in your newer course a year ago, after paper trading and being tired of looking at paper profits, i funded my trading account and am now enjoying profits, but i dont know about ANYTHING about taxes, llc's, sole prop and things of that sort. do you have any books that might address my lack of knowledge regarding that ? when i choose to liquidate my assets?

at 7:44:30 PM
Yes I do, bunun: Watch THIS . . . !
Are You Seeing Stars?
(There! Did you get that?!)
Dee in Salmon, Idaho asks:
For SteveMT. I was a previous course member who really did not do much, but this has always been a passion in the back of my mind. So I reenlisted in June. My paper trading account is almost up $27,000, and my real life trades are up $1500. I am not narly as aggressive for real!! You just have to go for it and above all trust yourself and don't let that little nagging "i can't voice" talk you out of it. Love you Ken

at 7:47:06 PM
Thank you Dee --- very well said!
ddottb Asks:

[I deleted your email address, ddottb!]

Hey Ken, I will speak up on my very first trade this week: I purchased 1 feeder cattle call 112 strike held it for 4 days liquidated for a $700 profit.
MHope asks:
MHope (Portland Oregon) Hi guys! Took your June class - it was wonderful and informative. I recommend the trading seminar and the counselors to those who really want to trade successfully. I have been following Ken Roberts teaching for many years. To share: I trade only futures (probably because I am not well versed in options as I should be). I am averaging about 1 loss to 3 profitable trades. I plan on trading full time in about a year or so. Right now my full time job keeps me too busy to trade as much as I want. Thanks for the education over the years Ken!

at 7:49:50 PM
You're welcome, and thank YOU MHope! (Here, MHope, find your picture!)
Just click on this:

http://www.kenroberts.com/JuneCamp.asp
bunun asks:
hmm me and mike could be considered brothers, i purchased 4 330 call lumber options @ 253 about 3 weeks ago for a total profit of 3,080.00 did i mention my names mike also ?

at 7:52:34 PM
Hey! What the Mike is going on here . . . ?
Soy Oil asks:
Soy Oil from Houston, TX. Earlier you had a question about Fibbonacci. Did you know he was one of the designers of the Leaning Tower of Pisa? By the way, Paris Hilton wants to buy the Leaning Tower and is going to re-name it the "Tiltin Hilton"

at 7:53:09 PM
Good one, Soy Oil --- thanks!
Learning the Ropes asks:
HI Ken, Been awhile away from chat, but glad I found you again. It seems to me that when I trade well I can't do wrong. I'm very profitable and "see" the charts with incredible accuracy. But lately I can't put on a profitable trade to save my life. And my confidence is gone. Any advice?.... I've been a active course member for 6 years and have traded many live and paper trades and still do. Thanks Lee

at 7:54:21 PM
Yes, Lee, keep paper trading! You've "hit the wall", the "the flow" is just on the other side. We ALL go through times like you're experiencing now. Glad you're back!
Jack Sladky asks:
Ken, I missed out on the Feeder Cattle breakout. When that happens, and one misses getting his/her call option in, do we just wait until possibly a 2nd chance to fill our order at our price? Or do we pursue the option at a higher price to 'get in'?

at 7:55:13 PM
I never chase a "moving bus", Jack. But if that market does make a setback (50% Retracement?), I'll consider entering then. Great question. Thanks!
handyman asks:
Ken, How do I get get more info on your Trading Camp weekends? Handyman in Colorado

at 7:57:07 PM
You'll find announcements regarding our Trading Camps in all the emails we send to you. None past this weekend's is scheduled yet, but when one is, we'll announce it via emails. You might also call one of my Course Counselors and ask to be reminded when the next one's scheduled. Thanks Handyman!
dave asks:
Thank you, Ken, for being there to teach us this greatest business in the world! I took your course the first time back in 1995, traded for a short time, took a beating, and then quit trading for 10 years, until now. Last October, my friend Dax reminded me of this great way to make money as he is a member of this web site. I immediately became a member also last November. I paper traded until three weeks ago when I opened a trading account and began trading with real money. It has now been three weeks of working with a broker and doing active trading. I absolutely love it! Its waaaay better than paper trading.

at 7:58:45 PM
Welcome back to you too, Dave!!! (Hey, this is like a reunion here this evening . . . . That's terrific!)
colin asks:
HI Ken, I've just come back on board as well. I had to get out for a while to get my emotions in control. I found that I was always trying to get one step ahead of the market instead of flowing with it. I notice that you are placing your options close to the money these days instead of buying " out of the money". Obviously more expensive. Did you find the other way just didn't work?

at 8:02:11 PM
No, Colin, and I think YOU should experiment with "out of the money" options, too. It's just that closer-to-the-money options is a more "stable" principle to teach those new to options.
golfer asks:
If TOVI tells you when, what and how. then why spend time with the charts

at 8:03:38 PM
Personally, golfer, I NEED my paper charts, and wouldn't trade without them! But I've heard from many traders who do just what you said --- use TOVI exclusively! (Which works better for YOU???)
Duce asks:
Ken I made about $3000 paper trading profits on feeder cattle. Are you long on feeder cattle still because I saw TT go from strong to extreme which means there is a strong possiblity for a trend reversal. I got out at the end of yesterday. I won't let the problem of taking profits mess me up when I start trading "REAL MONEY"

at 8:05:15 PM
Yes, I own a January 106 Feeder call (see details in Ken's Chart Book). Yes, see how psychological this all is?! How could "taking profits" ever be a problem for anyone except us humans???!!!
Star Addition
Roy asks:
Ken, Roy From Colorado, When using the S1 strategy, is it easier to get an option filled with a strike price that is a couple points in the money, or one that is a few points out of the money?? Also, do we have to keep the maintenance cost in our account when we purchase an option?? Thank You !!!

at 8:08:21 PM
Hello Roy. No, "maintenance" applies only to a futures contract (your "margin" amount cannot fall below the listed "maintenance" amount). Once you pay for your option (plus fees and commission), that's it: you're done!
Do A Friend A Favor
golfer asks:
Do you ever trade by writing options

at 8:09:45 PM
Yes, golfer! (See TOVI's brand-new, and long-awaited Writing Options module!)
azjoe asks:
Ken, in studying charts, I've noticed that trend lines are almost always correct. Could you just strictly use trend lines to enter and exit positions? Anyone else have a comment on this? Thanks. azjoe

at 8:10:23 PM
Yes, azjoe: Following trendlines is a long-established and well-respected trading strategy! Thanks!
The Secret Under the Hat
Fair Taxes!
Now's the time to let your politicians know how you feel! Come on! Let's do something GREAT and leave our legacy for America --- we can be the generation that ABOLISHED the draconian IRS!!!
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, October 11th. As always: Use these newfound powers only for Good. Good night, God bless, and watch where you step!
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