Guy Cohen - Illuminati Trading System

Oct 22, 2008
18
0
11
keithoops3.blogspot.com
#91
Good work Andrew - thanks for your detailed explanations, which all make perfect sense to me. Yes, I think you're dead right to keep tight stops, especially in view of the apparent current downturn in overall market conditions; we of course mustn't forget the bigger macro-economic picture. Guy's latest blog alert (dated Friday, March-20), in which he talks about reversing markets, and how to protect your profits confirms this.

FWIW, as an aside, I'm also studying candlestick patterns, which should add weight to judging the indicative probabilities of the correct future direction of a price move and breakout.

It's good to communicate like this. I'm sure we can learn from each other's experiences. Please keep in touch.

I'm off now to now embark on my second study of Guy's videos.

Kind regards

KEITH
 
Sep 14, 2006
30
0
16
#92
Keith

Regarding candlesticks. I have never went into the fine granular details of candlesticks so maybe you can share - since you are studying it.

Obviously on a chart there seems to be 4 main types of candles I have noticed red(filled and hollow), green (filled and hollow)? I know solid green means price finished higher than it started so this generally means price has risen and red means it finished lower than it started so price going down, but the hollow ones - i see these on my trade analysis software and have never looked into them thoroughly.

i don't know if my understanding is right here but if a price opens higher than previous price, goes down and passes highest value of last closing price but overall is still above it then that would be hollow green. Equal and opposite for hollow red??

Also noticed the sticks where the price starts at a point goes up or down then returns to that first point at closing so it looks like a little square with spikes coming out top and bottom - I think that is the best explanation I can give of that - do you know what I'm trying to describe?

Maybe i'm reading in to it too much.

Andrew
 
Oct 22, 2008
18
0
11
keithoops3.blogspot.com
#93
Andrew, in summary, as I see it, [and I am definitely no expert BTW):

Solid red candlesticks means today’s close is less than the open, and today’s close is greater than yesterday’s.
Solid green candlesticks means today’s close is less than the open, and today’s close is greater than yesterday’s close.
Hollow red candlesticks means today’s close is greater than the open and today’s close is less than yesterday’s close.
Hollow green candlesticks means today’s close is greater than the open, and today’s close is greater than yesterday’s close.

What you described in your penultimate para sounds like a 'doji' formation to me. There's tons of stuff out there on candlesticks. E.g. go to these sites for more info:

here

here

and here

to name but a few.

Cheers

KEITH
 
Mar 9, 2009
9
0
11
#94
Hey guys,
Any updates on your trades as yet? I was looking to go for the Flag trading system. Granted it won't make me a millionaire overnight, I believe it could make me some decent extra part-time cash. I have a few questions which I'm hoping you can help me with.

This is my situation as I'm finding, Mr. Cohen's online support really really really slow. I just don't understand this as usually a potential product query is (and should be) taken seriously and answered in the quickest time possible. Some of queries were dealt with by Mr Cohen himself only after I got his guy@optioneasy email from this thread. By saying that, he was extremely polite and to the point.
Ok, on to my questions -

a) What monthly income can I aim for considering I'm conservative in my trades and start out with a pot of £2,500.00? I'm thinking of being ultra conservative here.
b) Considering I join one of these days, can I start to trade by the end of May or maybe say June continuing to trade all summer i.e. July August? Or are these the 'Earnings report season'? The reason I ask this is I don't want my 30 day trial to coincide with Earnings reports.

And that's about it. Please forgive my ignorance on the matter. I'm hoping one of you can help me.

Cheers.
 
Mar 9, 2009
9
0
11
#95
Hey guys,
Guys support just emailed me with the answers just now. Its a 'dooohhhh' moment.
Your input is appreciated nevertheless.

Ta
 
Apr 1, 2006
5
0
11
Halstead
#98
Greetings one and all!!

This is a bookmark.

I've recently been made redundant - been looking to get into trading for ages and this seems a good opportunity to make a start (especially if I am about to get 2 months paid garden leave)

Thinking of going with Flag Trader but waiting for a spot of divine inspiration....someone convince me to take the plunge!!

(y)
 

HaloTrader

Active member
Apr 15, 2009
615
55
38
#99
Greetings one and all!!

This is a bookmark.

I've recently been made redundant - been looking to get into trading for ages and this seems a good opportunity to make a start (especially if I am about to get 2 months paid garden leave)

Thinking of going with Flag Trader but waiting for a spot of divine inspiration....someone convince me to take the plunge!!

(y)
Check your private messages.

:)
 
Update

Hi again everyone

I’m still experimenting with the FlagTader system. Just virtual trades in the main, with the exception of one small ‘real’ trade that I placed with IG Index on 7th May.

Why am I still just mainly paper trading? .. you might well ask. Answer:

1. Because of the recent Earnings Season, from which we’re just emerging. This period, apparently, is not a good time for FlagTrading; and
2. I’m still building-up my confidence with the system, as IMHO it might prove expensive to dive-in head first with real money, without first discovering under what circumstances (why, when and where) a trade could go TU.

Now then, during the two-week period from April-14 to April-29 I selected 19 potential trades which the FlagTrader system identified; a mixture of both bull flags and bear flags. The FT system selected the overwhelming 'good-looking' majority as bulls [i.e. 16 bulls – 4 bears], no doubt because of the recent up-trending stock market since early March. I deliberately included a handful of dubious stocks, just to see what happens to these alongside those that, at first view and according to the FT system, should more-than-likely breakout in the right direction and become profitable. The ‘iffy’ ones are, of course, more likely to enter into a drawdown situation and ultimately perhaps prove to be losers.

Results so far:

10 positions have closed GTC (good till cancelled) either by way of a pre-determined (1) limit order to close, or (2) stop loss.

I have 5 winners - with combined gains of 1303 points; and 5 losers - with a combined loss of 798 points. Resulting in an overall net profit on these filled orders of 505 pts.

2 trades were not triggered – and are now abandoned. I’ve walked away from these.

2 trades were absolutely ridiculous – and even I don’t understand why I selected them! [.. I must have had a ‘senior’ moment at the time, eh!?] - so I’ll discount these and say no more.

Five are still active. Three of these have yet to reach my pre-selected profit target – and have formed/ are forming ‘rounded tops’ *. The other two are just drifting along, more or less going nowhere – and unless they breakout in the right direction with the next 24-48 hours, I will also abandon these.

* Looking back at the three that have moved up, then drifted back down into a potentially losing position: With the benefit of what this paper exercise has taught me, I without question set my initial profit targets far too high. With the further benefit of wonderful hindsight, it’s clearly better to take a smaller first profit of say 150-250 pts, rather than setting the initial target at a whopping 664 points (yes, really, – that’s how naïvely optimistic I have been).

SUMMARY

So in summary, I’m still getting to grips with working the system properly.

Since May-01 I have selected another 16 stocks [15 bulls – 1 bear]. I have been far more diligent in my selection process with these this time. As mentioned, one of them is for real and is now in my ‘Orders to Open’ with IG Index. The order has yet to be filled BTW.

It will be interesting to see how I get on with this further selection, bearing in mind a potential imminent retracement from this now overbought [allegedly] recent two-month stock market rally.

CONCLUSION

So as I see it, my count suggests that there might be up to six of us newbie FTers posting on this thread, namely:

- Jchohan (June)
- Pjchalmers (Paul)
- Chris_P_D (Chris)
- Martinl (Martin)
- Andys280176 (Andrew)
--------------------
- Keith-H (myself)

Have I got this right? – If so, then it would be good to share experiences with you guys – and with this in mind, please do not hesitate to contact me if you think exchanging knowledge would be to our mutual benefit.

Cheers for now

KEITH

PS

... and thanks [for nothing!] Depth Trade. FYI I've just carried some cursory research into a few recent threads where you have contributed yet more inspired and incredibly mature advice to other members of this forum. Like: how to prepare properly for an interview? [i.e. interviewing technique] .. in which your wise words of wisdom in post #7 are:

I would always take about 5 bong hits and if they didn`t tell me what I wanted to hear, I would tell them to F uck off.

Either way, you win.
.. that's about all we need to know about you.
 
Apr 1, 2006
5
0
11
Halstead
Hi again everyone

I’m still experimenting with the FlagTader system. Just virtual trades in the main, with the exception of one small ‘real’ trade that I placed with IG Index on 7th May.

Why am I still just mainly paper trading? .. you might well ask. Answer:

1. Because of the recent Earnings Season, from which we’re just emerging. This period, apparently, is not a good time for FlagTrading; and
2. I’m still building-up my confidence with the system, as IMHO it might prove expensive to dive-in head first with real money, without first discovering under what circumstances (why, when and where) a trade could go TU.

Now then, during the two-week period from April-14 to April-29 I selected 19 potential trades which the FlagTrader system identified; a mixture of both bull flags and bear flags. The FT system selected the overwhelming 'good-looking' majority as bulls [i.e. 16 bulls – 4 bears], no doubt because of the recent up-trending stock market since early March. I deliberately included a handful of dubious stocks, just to see what happens to these alongside those that, at first view and according to the FT system, should more-than-likely breakout in the right direction and become profitable. The ‘iffy’ ones are, of course, more likely to enter into a drawdown situation and ultimately perhaps prove to be losers.

Results so far:

10 positions have closed GTC (good till cancelled) either by way of a pre-determined (1) limit order to close, or (2) stop loss.

I have 5 winners - with combined gains of 1303 points; and 5 losers - with a combined loss of 798 points. Resulting in an overall net profit on these filled orders of 505 pts.

2 trades were not triggered – and are now abandoned. I’ve walked away from these.

2 trades were absolutely ridiculous – and even I don’t understand why I selected them! [.. I must have had a ‘senior’ moment at the time, eh!?] - so I’ll discount these and say no more.

Five are still active. Three of these have yet to reach my pre-selected profit target – and have formed/ are forming ‘rounded tops’ *. The other two are just drifting along, more or less going nowhere – and unless they breakout in the right direction with the next 24-48 hours, I will also abandon these.

* Looking back at the three that have moved up, then drifted back down into a potentially losing position: With the benefit of what this paper exercise has taught me, I without question set my initial profit targets far too high. With the further benefit of wonderful hindsight, it’s clearly better to take a smaller first profit of say 150-250 pts, rather than setting the initial target at a whopping 664 points (yes, really, – that’s how naïvely optimistic I have been).

SUMMARY

So in summary, I’m still getting to grips with working the system properly.

Since May-01 I have selected another 16 stocks [15 bulls – 1 bear]. I have been far more diligent in my selection process with these this time. As mentioned, one of them is for real and is now in my ‘Orders to Open’ with IG Index. The order has yet to be filled BTW.

It will be interesting to see how I get on with this further selection, bearing in mind a potential imminent retracement from this now overbought [allegedly] recent two-month stock market rally.

CONCLUSION

So as I see it, my count suggests that there might be up to six of us newbie FTers posting on this thread, namely:

- Jchohan (June)
- Pjchalmers (Paul)
- Chris_P_D (Chris)
- Martinl (Martin)
- Andys280176 (Andrew)
--------------------
- Keith-H (myself)

Have I got this right? – If so, then it would be good to share experiences with you guys – and with this in mind, please do not hesitate to contact me if you think exchanging knowledge would be to our mutual benefit.

Cheers for now

KEITH

PS

... and thanks [for nothing!] Depth Trade. FYI I've just carried some cursory research into a few recent threads where you have contributed yet more inspired and incredibly mature advice to other members of this forum. Like: how to prepare properly for an interview? [i.e. interviewing technique] .. in which your wise words of wisdom in post #7 are:



.. that's about all we need to know about you.
I'll be following you guys and your responses as I hope to be joining you soon. The more I read about it the more it appeals to me.

What sort of time are you guys putting in to this on a daily basis? The reason I ask is I have a couple of months of garden leave coming up and this is when I plan to do several hours per day swotting - but once I restart work again in August / September I will be restricted to a few hours in the evening - will this be sufficient for me?
 
Sep 14, 2006
30
0
16
Hi

Just thought I would give an update on what I have been doing. As Keith said the market is just coming out of earning so no real action yet for this newbie. What I have been thinking is pretty much in line with what Guy has put on his blogs. Market is only worth watching just now. There are more bears than bulls but not seen that many good looking patterns yet.

I have been learning and observing more than anything and have been doing some practice trades over the last month on paper with quite good results. BTW if anyone in the UK is thinking of opening a trading account I would advise going with IGIndex and spread betting because optionsExpress is just too much of a pain to set up + you need a minimum $2000 to do any sell short trades with OX.

IGIndex can be funded with practically nothing and you can bet at a minimun 10p a point with guaranteed stop loss and no tax to pay on any earnings.

So here's is some of my trades I have registered over the last Month or so:

End of March 09 flags:

This one didn't break out so no win but no losses either:

ALLERGAN INC Share Price Chart | AGN - Yahoo! Finance

Not the best of flags and would probably have exited it anyway as it wasn't doing much

COOPER COS INC Share Price Chart | COO - Yahoo! Finance

Start of April. No breakout so no profit but no loss either:

PICO Holdings Inc. Share Price Chart | PICO - Yahoo! Finance

Not the best of trades this one:

CONAGRA FOOD INC Share Price Chart | CAG - Yahoo! Finance

This was a good one. From the start of April look where it went:

MCGRAW HILL COS THE Share Price Chart | MHP - Yahoo! Finance

Another bull:

PHILLIPS VAN HEUSEN Share Price Chart | PVH - Yahoo! Finance

Another bull:

ASHLAND INC (NEW) Share Price Chart | ASH - Yahoo! Finance

So there was many like this over the last month or so. The thing i've learned really is taking profits early is most wise.

Andrew
 
Mar 9, 2009
9
0
11
Thanks mate

Hi

Just thought I would give an update on what I have been doing. As Keith said the market is just coming out of earning so no real action yet for this newbie. What I have been thinking is pretty much in line with what Guy has put on his blogs. Market is only worth watching just now. There are more bears than bulls but not seen that many good looking patterns yet.

I have been learning and observing more than anything and have been doing some practice trades over the last month on paper with quite good results. BTW if anyone in the UK is thinking of opening a trading account I would advise going with IGIndex and spread betting because optionsExpress is just too much of a pain to set up + you need a minimum $2000 to do any sell short trades with OX.

IGIndex can be funded with practically nothing and you can bet at a minimun 10p a point with guaranteed stop loss and no tax to pay on any earnings.

So here's is some of my trades I have registered over the last Month or so:

End of March 09 flags:

This one didn't break out so no win but no losses either:

ALLERGAN INC Share Price Chart | AGN - Yahoo! Finance

Not the best of flags and would probably have exited it anyway as it wasn't doing much

COOPER COS INC Share Price Chart | COO - Yahoo! Finance

Start of April. No breakout so no profit but no loss either:

PICO Holdings Inc. Share Price Chart | PICO - Yahoo! Finance

Not the best of trades this one:

CONAGRA FOOD INC Share Price Chart | CAG - Yahoo! Finance

This was a good one. From the start of April look where it went:

MCGRAW HILL COS THE Share Price Chart | MHP - Yahoo! Finance

Another bull:

PHILLIPS VAN HEUSEN Share Price Chart | PVH - Yahoo! Finance

Another bull:

ASHLAND INC (NEW) Share Price Chart | ASH - Yahoo! Finance

So there was many like this over the last month or so. The thing i've learned really is taking profits early is most wise.

Andrew
Cheers for that Andrew. How early do you take your profits mate? Do you follow Guys methodology in terms of target 1 and then target 2? Or do you just take out profits on target 1 and forget about target 2.
 
Nov 23, 2008
98
5
18
Greetings one and all!!

This is a bookmark.

I've recently been made redundant - been looking to get into trading for ages and this seems a good opportunity to make a start (especially if I am about to get 2 months paid garden leave)

Thinking of going with Flag Trader but waiting for a spot of divine inspiration....someone convince me to take the plunge!!

(y)

Don't do it! Keep your money and save it! ;)
 
Apr 1, 2006
5
0
11
Halstead
Don't do it! Keep your money and save it! ;)
thanks for the advice - I have duly disregarded it!

Guys - I am in. I have gone through the software and been doing a few paper trades. I am a complete noob

Agree with pain in the ass factor with the OX accounts - just a little bit concerned with IGIndex not safeguarding against initial leaps (albeit a rare occurrence)! Also like the Tradesense documentation from IGIndex which turned up in the post yesterday - very impressive looking info.

From what I have seen on ths disks...and from what I have seen when "paper" trading I am suitably excited and think this could really have some mileage in it but I guess time will tell

I'll be monitoring closely and hopefully we can be successful altogether - good luck peeps!