US Charts Online Chat December 6, 2006 Q&A Follow-up
Hi everyone, Trader Jim here. . .
Below are answers to questions I wasn't able to get to during our December 6 live chatroom discussion. Enjoy and if you ever have a question that needs assistance right away, please feel free to contact one of our Course Counselors at 541-955-2885, Monday through Friday, 8:30am to 5:00pm PST.
Enjoy!
Jim. Thank you for answering my question earlier. I am starting to understand your approach to the markets. Keep on keeping on because I really appreciate all that you do for all of us. Thanks again!!!
Thanks for the kind words. We're doing all we can to help educate you to the best of our abilities and bring you the best trading tools possible.
Hey Jim, I guess my question about gaps is that in the chart book, gaps are circled or highlighted. As to say that there is some trading significance.
You are correct my friend! Gaps are often filled and/or act as support and resistance areas on the chart. For these reasons, every trader should know where gaps are located when writing up their trading plan for that market. For more information about Gaps be sure to watch the recent training video I produced just about this subject. You can find it at the US Charts web site.
Hi Jim, Thanks for all the infomation that you have given us. Thanks to the both you, Ken and all of the staff. I never thought that this on line stuff would be good...I still liked the paper charts, but the charts online are awesome! I once thought that I could trade without really understanding the process and lost a lot of money. Please do NOT bypass paper trading (training), it will save you a fortune!
Technology is wonderful, isn't it? We can do some amazing market educational things very quickly in this day and age. The neat thing is you don't have to wait days or weeks for it to happen. Thanks for the kind words.
Hi Jim, I'm a bit confused with march wheat and the trade tracker. For a couple of weeks, the tracker said it was neutral with bearish. Then it went to day 1 up with extreme. next day it was up strong and tonight it is back to neutral with a bearish signal. Can you help or clarify?
Think of the Trend Signal Ranking (TSR) as an analysis of the markets under a microscope. Because of the "micro" exam it performs on each individual market, the rankings can often change very quickly in a volatile market. Wheat has been especially volatile of late, thus the various TSRs. That said, the Trend Seeker Trend will give you a "smoother" idea as to what the actual trend in that market might be. I encourge you to watch the Trend Seeker™ video for more information about the TSR. The video is roughly 13 minutes in length and can be found by going to US Charts Online, clicking on the Trend Seeker tab, and then locating the video link at the top of the page.
When a jan. market is trading about 20 cents higher than the dec. market does the jan. market generaly lower some when dec. market expires?
It all depends on supply and demand. If there is more supply then the price will go down. Like wise, if there is more demand the price will go up. Along those same lines there's also the theory of backwardization that says futures prices will tend to rise over the life of a contract. So the near-term contracts trade at a higher price than the longer-term contracts. I hope this helps.
Has anyone come up with a method of keeping records that would allow one to see the markets he is watching at a glance? It seems as if this would be a way to keep everything in perspective so as to not loose track of the markets he is watching. Currently it is very time consuming to go through all of the markets daily.
There are two thoughts that come to mind right away. One, reduce the number of markets you're following to just a handful. That will save you a lot of time. Two, input all the markets that you wish to follow into the Custom Quote page at US Charts Online. You can add and delete as necessary. Once you input the markets in the Custom Quotes area you can easily access quotes and charts for each particular market. In other words, they're all on one page for you. I'll produce a video on this subject shortly. Hope you find this useful.
These are both volatile times and delicate times in the markets. Applying the WGB principles and running close stops seems to be prudent to maintaining trading capitol. I seem be be trading just ahead of Trend Seeker.
Glad you're finding success with the principals that we're teaching. Protecting your capital is without a doubt the name of the game.
Jim....Bonita Joe again......you probably won't print this as it isn't part of the class anymore, but was for my bootcamp. If it looks like coffee is going to drop, and I am way in the money with the CALL options, how about going short with futures with my broker using his dancing shoes to keep nimble with my positions.......silent stops, positions of support, percentage of return etc.???? Areyou in coffee?? Thanks for your time, Jim!!! Bonita Joe
Well you can certainly do that. I personally don't trade that way. But if it's part of your plan and you're comfortable with it then you might consider pursuing it. I'm not in Coffee at this particular time. However, coffee is in me as I just had a BIG cup.
Well that's it for this month. Keep in mind, that you're not alone in your trading journey. US Charts Online, myself, and our wonderful Course Counselors (541-955-2885) are here to help you become the best you can be. On that note, be sure to check out our weekly video trading lesson at: www.uschartco.com. This is a fantastic teaching tool and free to all Online Chart subscribers! (The video link is in white text located at the top of the very first page you see after the disclaimer when logging in.)
Finally, make sure you have a plan prior to entering any trade and use stops to protect your trading capital. As a trader your capital is THE most valuable asset you have!
Plan your trade and trade your plan!
My next chat will be on Tuesday, January 9, 2007. God Bless and I look forward to seeing you then!
Follow up Questions and Answers from 12/06/06 with Jim Prince
from December 19, 2006
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