I have been looking at Trade The Banks (TTB) from Guy Cohen. This is a system for trading the stocks of mainly financial institutions, and mainly American ones to boot. Hence this is a departure from the normal ForEx. I have been looking at this for three months, with a three-week holiday around Christmas and New Year.
TTB is not quite a simple or as straightforward as the sales page would lead to you believe. There are four DVDs to watch which introduce the techniques you need to operate the system. These are quite involved, but can be followed by people new to this type of trading. If you are new to candlestick charts, stick to looking for one type of pattern until you are comfortable with the strategy and slowly expand from there.
I used the £10 per pip cash-master baseline, but split in to two profit targets as required by this method.
Each day I scanned Guy’s 20 recommended stocks, and used the “Trade Finder” provided on the website to locate Bull Flags, Bear Flags, “End Of Moves” both up and down, and Doji Yesterday patterns. I started by including S&P 500 but dropped this after a few weeks as by-and-large these stocks appeared to be less volatile and I excluded anything with imminent Earnings Reports. My final filter is to only trade instruments available on IG Index. Don’t worry if this paragraph is all Greek to you, if you follow the course it won’t be and I need to outline my trading parameters.
My only quibble so far is that this review is going to be quite subjective. I may see, or fail to see, a qualifying pattern that you don’t and we could argue as to whether it is a valid signal or not. That is the nature of this type of trading, but I hope, in the end, it will all even out.
At £497 per year this is not, on the face of it, cheap. However, the profit of £20,743 in 9 weeks of trading far outweighs this subscription. Once you have the hang of the system it is easy to use, and takes between 30 and 60 minutes per day but does not operate at weekends. It can be done in the evening after work, so is perfect for 9to5ers.
However, to operate at £10 per point you are going to need tens of thousands in your trading account. Just how much depends on your attitude to risk. Somewhere about three to five thousand will allow you to play around the £1 per point (assuming IGIndex allows you to place the trade at those stakes, sometimes they don’t for obscure stocks), but this is still a very healthy profit.
So apart from the operating capital required, it is hard to see any negatives to this at all, and this is APPROVED with bells on!
There is a 30-day money back guarantee, so it is well worth a look, and hopefully worth keeping too!
You can try Trade The Banks here:
