Guy Cohen - Illuminati Trading System

[andys280176]

Hi all

I have now watched through the CDs for FT and all it looks quite a reasonable and impressive way to trade. What I am looking for is something where I can have input and control into trading and Guy actually states something to this effect that Black boxes are to be avoided. I also want to start small and compound profits and learn and have fun along the way.

I have never traded stocks before and although I have watched the CDs once I think going over them again would be very advisable so that I can firmly establish what EXACTLY it is I have to do on each trade.

I felt that I never picked up the part about the 'Cost' of the trade very well so I will go and concentrate on that again. Maybe someone could help me by explaining that?

The options and spread betting bit went over my head a bit too but I would need to watch it again. I do not think this is mandatory for FT but Guy included it just to introduce it in case you want to use that - or know about it - as well.

Now that I have finished the CDs I was kina thinking right how do I get the charts, what is best account to open etc? Is it IGIndex or something? I think there is a bit on that in the CDs but is that the charts Guy uses in his presentations? The other charts I have seen don't seem as specific.

Still a bit stuck on the actual getting the ball rolling after using the software to find flags.

Andrew

 

[andys280176]

Hi

Bit of an update on how I am doing with FT. Well I am now watching the videos over again and getting used to using the software to find flags. I have set up an account with optionsXpress who are recommended by Guy. It also seemed to me a lot simpler to use than IG Index. It is a bit of a pain setting it up and you have to fill in a few forms etc. and send of a photo ID and proof of your address etc to open the account.

A W8-BEN form has to be filled in if you are not a US citizen and an explanation is given below:

W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding)
The W-8BEN is a IRS document used to certify that an individual is not a U.S. person and to claim reduced withholding when a tax treaty exists between the U.S. and the individual’s country of residence. Most applicants must complete Part I Sections one through five, Part II Section 9A, and the signature line. If the account is a joint account, a W-8BEN must be supplied for each account holder.


Some of the terminology of the application for setting up an account is a bit daunting but most of it doesn't really apply if you are just setting up an 'individuals' account. Instructions are given on the parts you have to fill out. You have to give your passport number and with the final application you have to supply:

Finished application
WB-BEN
photo id
Utility bill

The TC2000 chart software allows you to import the list of flags you find into TC2000 with the FT software so you can analyse the charts a lot more easily rather than clicking on each individual chart from the FT software. This is easy to get and you get a 30 day free trial and then $29.95 after that. Link is below and just sign up by clicking the large green button at the top centre of the page.

WORDEN TeleChart 2007 & StockFinder 4.0

Please note if you are signing up for TC2000 and you are not in the USA it still asks you to put a state in i.e. Alabama but I am in UK and application kept failing, and assume this was why. It tuns out you pick the null part out of the drop down list. I also kept getting a lot of errors when trying to complete application and I do think the application form could come in for some criticism, especially from me being a software tester/developer!

Telechart is 741MB so make sure you have some space to store it, broadband to download charts etc. and decent memory on board.

In saying that I do not see how you would need any other stuff on this than your own list of charts imported from FT (i.e. the watchlist) so I will see how that pans out. It might have the other charts as default and you can't clear them out?

I am due to get my account up tomorrow hopefully so I hope to be looking to start a small trade this week and see how it goes.

Earning season is up in April so I want to get my skates on.

Andrew

 

[andys280176]

Account is not going to be on till at least Wednesday now. Bit of a hold-up with optionsXpress. I have a few paper trades on just now so wait and see how they go. Really annoyed at the bureaucracy to get an account open but process is now up and going.

Anyone else got any feedback on how they are doing with FT?

 

[carolineg]

Hi
I got e-mailed information about Guy and his FT system and a search led me to this site and thread. I am a single degree educated working mum who needs serious income, doesn't have much time and has not got a clue about anything financial. Reading through it seems like Guy is genuine, the product is solid but I would so welcome your advice on if I am throwing money away doing this. I am a total novice and most of the language i have read on here might as well be martian. If it seems too good to be true it probably is - is ringing in my head....

Any advice much appreciated

Caroline

 

[andys280176]

Hi Caroline

The FT system is not something that will make you a million overnight, now that would be too good to be true. From what i've picked up so far the FT system gives you a good trading plan to enable you to make ok returns from the markets. The trading plan is the essential part of the system as you do not just jump in and trade with no plan. I have had the course for a few weeks now and I am feeling ready to start trading although earnings season is coming up (Apr-May) for the markets and being a novice I think I may stay well clear this time around.

Key as well is compounding returns as you may only start with a little cash and build on the profits you do get by putting your profits together into more trades to make better returns. Returns on the trade finder CDs seems to be typically 10-30% although this isn't a quoted value, I just think that is a rough estimate.

You will need to invest time and patience in this if you are going with it. Read my experiences with it above and you will see what I mean.

The theory behind flag trading is - basically - a certain stock price may be going up or down and a flag is formed i.e. a long bar up or down and then a consolidation. The consolidation then gives you safe entry and exit points with which to trade your buy and sell trades (or sell and buy if bear flag). There is more to it but not really a lot, just that you have to check a few other things like news, open interest figures against the current price and whether that company is about to publish earnings + take into acount what the wider market is doing.

Andrew

 

[carolineg]

thanks so much for your reply Andrew and your explanation of flag trading is very clear and informative - i get it now.

The investment in time and patience is something that is fair enough and is more believable than making 7k a month in 20 mins a day almost from scratch with something a 12 year old could do. I will keep watching this thread and will be really interested to hear how yourself and others are doing with it. I am half wanting to go for it and half thinking don't. Perhaps that indecision is not a great trait for a trader?!

Caroline

 

[leritz]

Hi Caroline, I am in the same boat as you are. My "in a nutshell" advice would be to buy it, open it, n test drive it for the 30 days you are offered on the money back scheme. Consequently (lol), you will be our next expert in reviews... (I do appreciate your guts in coming into this financial drama with all the life stresses around you- Best Of Luck)

 

[andys280176]

Ther seems to be a market rally on just now and it seems the small rise will turn in to rounded tops i.e. retracement of rise, so imagine the trend going up then a flag forming them instead of breaking out upwards it just goes down so it looks like a rounded top almost. Good thing is even if you had put a trade on here (for a bull flag) the stock wouldn't have risen through the flag and wouldn't have triggered your trade, so you wouldn't have gained but most importantly you wouldn't have lost.

At the moment all eyes are on the market because of the rally and at the moment it has stalled after a small upwards from a lowpoint. I do not fancy trading for real yet because of this rally plus the earnings season coming up is something I might miss out just now as i am an ametuer trader just now. Earnings are between mid jan-feb, mid apr - mid may, mid july - mid aug, mid oct - mid nov.

You can trade in these times as long as your stock doesn't have earnings coming up soon. this is filtered on trade finder and you can even double check it on another website.

I do remember someone else on here was using FT. Any feedback from any of you other guys out there?

Andrew

 

[Keith-H]

I do remember someone else on here was using FT. Any feedback from any of you other guys out there?

Andrew

Hi Andrew - I'm now also a fully paid-up FT user - although I have been away and out of the country since February-12, and only returned home last Wednesday, April-01.

Before going abroad I meticulously went through and studied all of Guy's videos, but didn't feel comfortable enough at that time to place any real trades .. just a few 'dry-run' practice attempts, which produced a mixture of results, which I guess was only to be expected.

Now after a gap of more than seven weeks away I reckon that I'll need to go through all of GC's videos again and refresh my FT learning curve. This should be no bad thing in any case.

I did open an IG-Index account back in early February, although as mentioned, I have yet to place any active 'live' trades. However, I do intend to start properly trading within the next few days/weeks - and certainly no later than shortly after this forthcoming round of earnings announcements has ended.

As we're both more-or-less in the same position, then perhaps it would be good to exchange thoughts and opinions*. This surely would be to our mutual advantage? With this in mind, please do not hesitate to contact me here in open forum, or perhaps by way of a PM/e-mail msg at any time.

Meanwhile - good luck with your initial trades.

Cheers for now

KEITH

*PS - is there any other FT users out there who might care to join in discussions? (knowledge shared is knowledged gained! .. etc .. 🙂)

 

[andys280176]

Hi Keith

I done pretty much the same as you (except going away for a few months). My first virtual trades were not really meticulously planned; I just went with a few flags I picked up and about half went the opposite way (so nothing lost really). A few more went up a little bit and one or two went up and then broke down to the downside ( a few losses incurred). I hadn't checked news, market conditions or anything like that. It was the second round of bull virtual trades that I planned a bit better and seemed to get a bit better results. One actual loser in about 10 and about 5 or 6 breaking out and these are still on the up. Best one was Hospira. You can see it here with the flag about mid march. I thought out of all my trades that this was one of the better ones and even looking at the chart there was risk of a double top (ish) or a rounded top but shouldn't have lost anything if it did. There's also an upside down cup and handle but that is before the uptrend; I think guy said something abot upside down cups and handles so will need to go back and check - although not trading right after it.

HOSPIRA INC Share Price Chart | HSP - Yahoo! Finance

For me the flag was a good one, it wasn't steep and the spread was only a dollar or so, and the thrusting bars looked quite good too coming up to the flag. If you run the scanner thing over it in the chart you can see it actually consolidates down in the flag, with volume stalling at the flag. Would have pointed out that the volume was dropping as the thrusting bars were going up but more nearer the top so I don't think this was a significant concern.

Out of all the trades this is the one I would have picked as a live trade if I was going to trade for real. It looks like it is forming a little bit of consolodation again so If I was in this trade I would be using the trend line to manage my stop loss and by the looks of it would still be in just now having taken about $3 overall profit so far and first half profits already taken.

Guy did mention that the current overall market condition is or was a rally so this upward trend may not have lasted in the Dow/S&P500 etc, which was more evident in my other trades but the majority I picked did still go up and hit the trading areas I had set.

I'm stil learning so I am not trading yet. I am a bit sceptical doing it so near this rally and in an upcoming earnings season. Once I get plenty of practice I will be much more confident trading around these areas.

Last thing I want to do is throw caution to the wind and let human emotion take over and cause me to start incurring losses. Stick to the plan and never deviate is my motto. Don't trade because it looks good (except a good flag) or you have a hunch just if it passes the plan criteria.

Andrew

 

[Keith-H]

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

 

[andys280176]

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

 

[Keith-H]

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

 

[italo79]

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.

 

[italo79]

Hey guys,
Guys support just emailed me with the answers just now. Its a 'dooohhhh' moment.
Your input is appreciated nevertheless.

Ta

 

[Depth Trade]

Last I heard is he had just opened a Hotdog stand along with his trading `system`.

 

[Depth Trade]

Last I heard is he had just opened a Hotdog stand along with his trading `system`.

Illuminati (plural of Latin illuminatus, "enlightened") is a name that refers to several groups, both historical and modern, and both real and fictitious


Or you can contact him Via Radio Taxi, I think cab #23 is the one he drives.

 

[swisdom]

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!!

👍

 

[HaloTrader]

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!!

👍

Check your private messages.

🙂

 

[Keith-H]

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.