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Frequently Asked Questions

Michael Covel (March 12, 2006)

Our clients and readers are individuals from beginner to "been around the block" advanced traders. We teach start up trading firms to billion dollar hedge funds. You only want to trade your private account or IRA? You would be our typical client. Whether you have $1000 or $10,000,000 to invest, we can help you take your portfolio to new heights. Who is our training for?

  • Anyone who wants the opportunity to learn to make a lot of money.
  • All traders of all levels across Wall Street to Main Street.
  • Perfect for beginning traders as it gives you a complete trading method from the ground up.
  • Anyone looking to actively trade their portfolio, but doesn't know where to start.
  • Experienced traders: hedge fund managers, commodity trading advisers, floor traders and locals.
  • Professional or employed traders looking to establish money management businesses.

A degree in math or statistics, or economics is not needed. Staff, premises, and expensive overhead are not required. Who is our trend following training NOT for?

  • People who have no money.
  • People expecting to make millions instantly.
  • People who only want day trading.

What makes a winner in this business? We teach it. You must want to be at the plate with the bases loaded, 2 outs, bottom of the ninth and down by one.

Q: Is systems or trend trading risky?
A: Oh come on! Life is risky, you might get hit by a car crossing the street. All trading is risky. However, if you have a concrete plan, risk is manageable and that is the key to the success of the great traders who make the millions. And don't think for a second that trend trading is more "stories" and fundamental analysis. It's not.

Q: But people often fail in trading, don't they?
A: When I examine the so-called failure rate of traders, I keep coming back to Ed Seykota's famous dictum that 'everybody gets what they want'. Yes, many people want to lose. How else can you explain the fact that so many people ignore the opportunity to learn the right way to trade, but instead gamble away acting like crazed teenagers on speed? We teach how to use the market for out sized profit opportunity, not for fun or impressing your friends with "stories".

Q: Do you have a guarantee?
A: Read.

Q: Do you offer discounts?
A: Read.

Q: Where do clients live?
A: Watch presentation.

Q: What are return examples?
A: Read.

Q: Do I need to be experienced in business or finance to do well?
A: No. Many of the greatest traders had little to no experience trading before starting. However, they were motivated to learn and work hard. You need average intelligence and self-discipline to follow rules.

Q: The advice "buy high and sell low" goes against conventional wisdom. What does it mean?
A: "Buy high" means that trend followers buy as markets go up. If a trend goes up, say from 5 to 100, do you only buy at 5? A trend trader could also buy at 20 as the trend continues upward to 100. "Sell low" is the opposite. Trend traders go short as the market declines.

Q: How much math do I need to understand?
A: You do not need any specific mathematical background. This is the basics of +, -, *, /. Nothing fancy.

Q: Is trend trading a black box system?
A: No, this is not black box. We teach you all rules and how to apply them.

Q: Will I be able to make money in both long and short positions?
A: The strategies we teach enable profit from both rising and declining markets.

Q: Do the best traders often reside in obscure locations making only a few trades a week and not following the markets during the day?
A: Yes.

Q: Will trend trading work on stocks?
A: Yes.

Q: How much time is required to trade right?
A: If you trade on a definite loss limiting-method, it will take very little time from your regular business day. You can spend a minute or two per market checking up each day. For example, let's say you check in the evening and then with one telephone call in the morning, place or change any orders in accordance with what the rules.

Q: What markets can be traded?
A: All markets can be traded. Our strategies have broad-based market applicability across stock and commodity markets.

Q: Why do you emphasize money management?
A: Money management, also called risk management or position sizing, is a critical component of trading success. Read more.

Q: Are markets different now?
A: No. Read.

Q: Don't you need 24-hour news and price screens to trade right?
A: No. You can use the internet to get closing price quotes. You don't need real-time news. In fact, you don't need news reports at all.

Q: What computer equipment do I need in terms of software and hardware?
A: There is no one software or hardware product to assist your trading. There are many products to help automate the rules we teach. We can help navigate the waters to choose.

Q: Is trend trading only for U.S. markets?
A: No, it is for all markets.

Q: I am a 45-year with $100,000 of investment capital. My goal is to turn $100,000 into $500,000 in 10 years. I want a trading system to achieve this goal of around 17% a year. I consider myself an amateur in the markets, but I am willing to learn. Does your course teach how to achieve such a goal?
A: Yes, but you need to work hard. There are no free lunches.

Q: Is leverage part of this system?
A: Yes. All great traders use leverage. It is a tool to be used correctly. We teach how.

Q: Will I learn to set profit targets?
A: Profit targets are not wise when trading as a trend trader. This is not about prediction. Prediction is impossible.

Q: How do you handle losses?
A: No one can be right all the time. The key is to have more profit than loss in the long run so you learn how to anticipate and accept small losses as a function of playing the game. You learn how to manage your small losses in order to keep yourself in the game.

Q. Are trailing stops used?
A. No.

Q. Do trend traders make decisions based on economic reports?
A. No.

Q. Do trend traders adjust to changes in volatility?
A. Yes. Automatically. We teach how.

Q: Once I complete your training, will I need to rely on brokers to help me trade successfully?
A: You will not need a broker's opinion.

Q: What about academics who always talk about markets being efficient?
A: Highly educated people sometimes know just enough to hesitate pulling the trigger. You must have the techniques, but you must also have the guts to play the game. The markets are efficient until they are not and that happens often.

Q: Why should I buy your system when competitors promise 70% accuracy?
A: If someone teaches you a trading system where 70% of the time you win, but you make very little when you win and then during the 30% of time that you lose, you get killed, how great is the system? The goal is to make the most money, not to have a highest winning percentage.

Q: What do you think of new trading techniques involving artificial intelligence, genetic algorithms, neural nets?
A: These techniques are designed to predict the future. That is impossible.

Q: Once your training is completed, what additional expenses will be necessary for implementation?
A: In order to implement what you have learned, you need to plan for basic additional expenses in the form of: 1.) Money to trade, 2.) Market data on a daily basis for trading decisions, and 3.) ideas on software to automate our rules.

Q: What starting capital is needed?
A: Read.

Q: I've lost a ton of money in my 401K. Can this system help?
A: Yes.

Q: Once purchased, what is your support policy?
A: We offer super fast email support for one year after purchase.

Q: Is this all about secrets and get rich quick promises?
A: No. Read.

Q: Do you offer in person seminars too?
A: Yes. Read.

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