A couple of days ago Guy Cohen published his views on the current state of the markets as well as looking at several trades that he and some of his students had considered.
If you have not read them already then I suggest you get up to date.
Since then things have moved on rapidly and you might find it educational to see how those trades developed. Click this next link to find his latest commentary on how those trades have developed and the lessons to be drawn from them.
The Flag-Trader trading package was released this week and is already creating something of a stir among traders – as far as that is possible in this week of market turmoil! As Flag-Trader actually takes profits from volatility either up or down then even the most dramatic of recent events are safe trading opportunities with the right protection in place.
Flags are among the earliest chart patterns taught to new traders but it would be a mistake to dismiss Flag-Trader as being for beginners. No, it's a strategy for traders who want to make profits – and to keep hold of those profits once they are made.
While Flag-Trader addresses the needs of the beginner with a combination of simplicity, clear instructions and the essential ingredient of access to Guy's own online software, he addresses the needs of every trader by showing clearly how to avoid losses, secure profits and to ride the big winners.
Among several powerful tools that Guy has added to this conventional flags technique is his proprietary Traderfinder software tuned to identify a small number of candidate flag trades that gives real value to this package.
Scouring all of the markets to identify a small number of candidates flags to review manually and apply the training in entry, exit and trade management this tool ensures that it does not take long to place trades that are very safe – but also have the potential to ride the big moves into substantial profit.
Guy gave us access to a pre-release version of Flag-Trader that has been the source of my comments on this site. Check out the 'What You Get..' section in the right column to find out what's inside the box and read the full Flag-Trader Review page.
Don't forget to sign up (top right corner) to be among the first to get new information as soon as it is released.
Stop Press: The Flag-Trader sales site is now open for business at www.flag-trader.com
There's nothing quite like a happy customer to make users feel good about a product.
One of Guy's customers has been trying out Flag-Trader and came back with the following:
From: Michael
Sent: 15 September 2008 21:06
To: Guy Cohen
Subject: Open interest! yeah baby!
Hey Guy!
Still going through the flag trader course but thought I'd let you know about my first foray into trading flags and open interest.
Found GAP on flagtrader (bear flag). Usual suspects seemed in place (trending, open interest, huge put disparity) so I set a contingent order for a couple of puts if it broke downwards.
This was my trade journal entry prior:
"Nice bear flag. No news except that there might be a clandestine takeover coming evidenced by increased volume (article from news section). General down trend. Coverage initiated recently so ppl will be watching the stock. OPEN INTEREST on the puts 1400, on the calls 25… TYPE OF ORDER(PUTS): Contingent upon GAP less than 12.60 – Good Until Cancelled Trigger type : last."
To be honest I'd almost forgotten about it until tonight when I casually checked my optionsxpress account and my balance had jumped up!
Stock is now at 8.84
Puts cost 3.2 each – now valued at 6 bucks so its 87.5% gain, and counting… in two or three days!
Woooohooo!
Going to take half off and then ride it down on a trend line and see how far I get.
Don't know if I got lucky, but by Jesus I have hope!
Pity i'm still virtual trading… anyway feels good.
So it looks like first impressions from users are pretty good.
1929, 1974, 1987, 2008 … Technical Trading Always Comes Back
Some news about the developments on the Flag-trader.com website – UK stocks will be added to the data available from the US in a new release of the site just implemented. And as part of the ongoing improvements the links out of the site to the Yahoo charts are also being improved.
One of the surprising elements of Flag-Trader is how it manages to be so effective using information publicly available on sites like Yahoo! – though Guy's Tradefinder software remains the big cannon that makes the Flag-Trader trading strategy so effective.
And some further Market Commentary from Guy:
"I am finding some decent charts out there even in these crazy markets. However, when one piece of news can change the entire market by 100s of points in minutes, it's best for ANY trader to sit this out and observe. I'm not a gambler and so I'm simply observing – sure, a couple of nice opportunities have slid by, but I'm happy to wait a bit. Flag-Trader students have reported profits of over 200% per month in normal market conditions, and my best students are simply biding their time right now. Of course if you've been with me for a while, you have the benefit of having used the system for some time and have made windfall profits, even in the downtrend.
You simply have to trust me on this and not get involved with all the hype and panic out there. Similar things happened around 9/11 and the markets took their medicine until normal, technical service resumed, as it has every time before that, including 1987, 1974 and 1929.
We don't mind the markets moving down – that's not a problem for us. It's the news-driven panicky nature of these moves that we don't particularly like. I'd say we have to get through this next earnings season and then we'll be in a more technical environment again."
Or if you are already convinced then cut straight to the Sales page - or the UK Sales page if you prefer your prices in GBP
Spread the Word!