FAQ – Frequently Asked Questions

Feel free to ask questions in the Comments section of each post or email us from the Contacts page and we will try to gather all the most Frequently Asked Questions right here – and provide some Answers.

Question: I'm totally new to this and have never traded. Is this right for me?

Answer: Being completely new to trading could be an advantage. You will have no preconceived ideas and will make a better student. The video training take you through everything you need to know. And this really is as simple and safe as it gets.

Question: How do I actually place my trade?

Answer: Through a broker – of which there are thousands or by spreadbetting online or by telephone which is much neater without additional parties being involved but is not available everywhere.  The course does recommend a broker and a spread betting firm but this is because they have been found to be most useful for this strategy.  You can make your own choice.

Question: Where do you set up a brokerage account for trading?

You can choose and use your own broker according to your own preferences.  Flag-Trader recommends OptionsXpress simply because they are Guy's preferred broker and are familiar with the style of trading.  Many UK traders choose to spreadbet online which requires no broker at all.  Unfortunately, this option is not available to US traders.

Question: If I'm spread betting then many UK spread betting firms don't offer all the US stocks.

Answer:  This is the reason that IG Index is suggested for spread betting because they offer the greatest number of US stocks for spreadbetting (in excess of 2,000).

Question: What equipment do I need?

Answer: A decent PC and a phone line with broadband. That's it. (You could just about do this on dial-up if you don't have broadband.)

Question: What are the settings to make the software work and do you provide the user those setting?

The settings for the Tradefinder software are fully explained on the Flag-Trader disks.  They can be set to be very conservative and safe or you may choose to loosen off some of the selections to be more aggressive with your trading when you have more experience.

Question: Do I have download any data to my computer?

There are two answers to this question; No  – and Yes!  The Flag-Trader Tradefinder software is set up to link directly to publicly available charting and information sources so it is quite possible to trade without any additional commitments.

Alternatively, one of the major advantages of Flag-Trader is the speed of the selection of candidate trades (2-5 seconds on average for the entire selection).   To maintain that advantage many users also use the free TC 2000 software because this gives you the ability to flip through the charts for the selection of candidates simply by tapping the space bar of your keyboard.

If there is nothing suitable to trade then you can be finished in just a few minutes.  TC 2000 is not the greatest charting package in my opinion but it makes up for that with this one great advantage.

TC2000 requires a data feed which costs about $30 per month (from memory) but you get 30 days free when you start to subscribe.   If you already have a data feed then you may find that it is TC2000 compatible in which case just use the free software.

Question: How much time does it take?

Answer: I've found I can scan the listed flags patterns and make a decision about which to trade within about 30 minutes. So you are effectively getting the best flag opportunities in the whole market presented on a plate in 30 minutes. Then decide your entry, exit and stop points and place the trades – 5 minutes. The trick is being patient and waiting for great opportunities to present themselves. Do not trade just because you want to. Trade because all the indicators are that you will make a profit.  This is not a day-trading system where you have to spend hours locked in front of your computer.

Question: Can I trade all year around?

Answer: Yes you can, but it is best to monitor the markets all the time but trade only when good opportunities leap out at you. Don't go hunting for trades.

Question: Do I have to make a lot of complicated calculations?

Answer: None at all!

Question: Is this risky? Could I lose a lot of money?

Answer: The whole focus of Guy Cohen's trading strategies is to make them as safe and reliable as possible for home traders. If you follow the instructions then there is no reason why you should lose any money over the longer term bearing in mind that some trades will inevitably fail, and you should make substantial profits as many of his students testify to. Having said that, no-one should trade with money they cannot afford to lose.

Question:How much money do you need to open a brokerage account for your software?

A lot of the answer to this depends on the risk calculations that Guy teaches on the course.  However, it is fair to say that it would be difficult though not impossible to start with less than £1,000/$2,000. You need to be able to place trades where the risk on a single trade is no greater than a small percentage of your trading fund – the smaller the better.  That risk is represented by the spread between your entry point and your stop and this varies with every trade.   As always, you should never trade with money that you cannot afford to lose.

Question: Is there a guarantee?

Answer: Yes, there is a 30 day, no argument, money back guarantee.

Question: Is it really possible to give up work and make a good living from this?

Answer: Absolutely yes, this is possible.

Question: The sales offer talks about free access to the online software for 12 months. What costs should I plan for after that?

Answer: The charge after the first 12 months free service will be $97/month. Naturally, after the first year you are expected to be making good money and well able to pay for the service that is helping to make that happen.

Question: I've seen Guy Cohen offering another course called Illuminati-Trader.  What is the difference between Illuminati-Trader and Flag-Trader?

Answer: Illuminati-Trader is an options based system where the direction of the stock movement doesn't matter. Flag-Trader is a stocks-based system. Flag-Trader has fewer moving parts and many people find it easier.  Illuminati-Trader does contain a light Flag-Trader module. Both have had many success stories.  There is also a price difference with Illuminati being about twice the price of Flag-Trader due to the greater complexity.