Part of Guy Cohen's teaching is about not listening to commentators, tipsters and the like. Perhaps this might explain why..
Courtesy of The Economist.
If you have subscribed to any of the Flag-Trader material before now then you will already have recieved a hail of emails advising you of Guy Cohen's next seminar on 14th March.
After the success and enthusiastic response from the delegates at his last seminar back in November he's going for a substantially bigger venue to keep down the number of disappointed customers that had to be turned away last time.
So if you are interested in Flag-Trader but have not wanted to commit then now is your chance to see the man in action and form your own opinion, rather than rely on the sales material which is, well, it's sales material, what do you expect?
As before, Guy plans to cover his two best selling products with free copies for those attending plus his insider knowledge encapsulated in Ambush-Trader making a total of 3 strategies.
And for those who may already have bought his training products there is a major discount of £1,000 so you get all your money back and don't end up paying twice – and then you get his other product, that's at least another £1,000 thrown in for free. Can't be bad.
There's another difference this time round in that customers will be getting ongoing mentoring through regular webinars during which Guy will be covering all the most regularly asked questions as well as those thrown at him on the night. There is an ongoing monthly membership fee for the additional service. However, you can always opt-out at any time so there is no long term commitment.
Making himself personally available to as many members as he can at one time is how he described it to me.
Space, as always, will be at a premium with so many people in these difficult times looking for new ways of creating their own sources of wealth.
If you are looking for new ways to increase your income in these difficult times and want a high value introduction to trading then you can't do better than one of Guy Cohen's Private Trader training seminars.
You can find out more on www.GuyCohenSeminars.com
CV Therapeutics
Here I am, paper trading away and frankly not finding anything terribly interesting as my flag trades mostly fail to develop. However, I'm taking comfort from the fact that this is exactly as Guy Cohen has said it will be in this uncertain market.
So my early successes in November where my trading fund increased by 30% during one month have rather petered out with no real movement since then. The good thing, of course, is that the trades I have placed have simply not been triggered either so I have no losses.
On the 27th, Guy's Tradefinder software picked up CV Therapeutics (CVTX) which looked promising. At least it had those positive, thrusting bars that Guy refers to with a succession of lower highs as the price fell away. So I set my Buy Limit and Stop orders as per the instructions and it became the sole occupant of my Flag-Trader watchlist as the others had all faded away.
My main concern was whether, if it moved on up, it could break through the resistance around 1200 from previous high of Sep 08.
This morning I opened up TC 2000 and ran the Update to get the latest data and ran the Flag-Trader Tradefinder again to find any new candidates.
Then I checked my watchlist – and thought that something had gone wrong with the data uppdate as I looked at the CV Therapeutics flag. It took me several moments to realise the stock price had gapped up into the top right corner and I wasn't even looking in the right place.
I bought in at 1185 and it closed at 1542. That's a 357 point gain in one day – or is it? Unfortunately, my joy was shortlived as I realised that by gapping up over my Buy Limit order (a Limit order being an instruction only to execute the trade if it is within the limits I specify, in this case the single price of 1185) the trade would not be executed.
This situation is, in fact, covered in the Flag-Trader instruction CDs. In fact, the only way over it is to place the order during market hours – so although technically effective that would mean having prior knowledge of the coming gap, an unlikely situation, and it doesn't fit in with the relaxed trading style of Flag-Trading.
Looking at the news I see that the company has been the subject of an aggressive takeover offer that explains the jump. I've tried to tie the movements of the preceding days to news announcements but they don't really seem to tie up – and like most private traders, I've got other things to do and don't have the time to go into the detail.
I really don't mind the reason, the fact is that the Flag-Trader method worked well by demonstrating that it would catch a big move like this with minimum time and effort on my part. It was just unfortunate that the move was actually so abrupt that the technicalities of the markets orders would have prevented it paying off.
Reading Guy Cohen's latest Alert for his subscribers I see he has been warning of the current earnings season during which there is likely to be more bad news to be absorbed by the markets leading to unsettled situation. However, he expects things to settle down and then to see some good opportunities returning. If they are anything like this one then I'm looking forward to it.
You obviously don't need many like this each month to generate a decent income from Flag Trader.
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AmerisourceBergen ABC
I think it's time to close out this lesson on the stop loss. The price has moved clearly into profit and I would still have been in this trade if it had not been stopped out by my over-anxious move of the stop right up to the entry point after which I was taken out on 7th January.
The price is now about to come up against the 200 day moving average and there is a Presidential inauguration on Tuesday – so absolutely anything could happen which will have nothing to do with the original circumstances of the trade.
However, note the very nice cup and handle formation which should bode well for the future.
In the meantime, stop loss lesson learned.
