FAQ

Educational Resources – How to buy and sell stocks

If you are new to Gorilla Trades, the most efficient way to learn the Gorilla Trades System is by taking the Tour.

Select one of the following links to go straight to the corresponding section of the FAQ:

About GorillaTrades Inc.

Q. What sets the Gorilla Trades service apart from other financial or stock picking services?
A. Gorilla Trades is a mechanical, risk-controlled system.  A specific exit strategy, which includes a stop loss level and upside performance targets, is given with every new GorillaPick.  Thus, there is no guesswork involved!  It is designed to make your investing decisions effortless.

Q. How long has Gorilla Trades been in existence?
A.  Gorilla Trades was incorporated in 1999.  The Gorilla spent the past twenty years developing the methodology used successfully today by Gorilla Trades.  At the insistence of many of the monkeys who had witnessed the Gorilla's success, he decided to make the service available on a subscription basis. Even the Gorilla was surprised at the response, and with absolutely no advertising during the first two years, GorillaTrades became one of the fastest growing and most well-respected subscription investment services in the world! See About Gorilla Trades.

Q. Is GorillaTrades compensated in any way for the companies it recommends?
A. Absolutely not!

strong>Q. How are you affiliated with IBD, Money, Smart Money, or Kiplinger?
A.  GorillaTrades is an advertising partner with each of these companies and is a totally independent entity.

Q. Do any of the GorillaTrades employees, analysts, financial consultants, or the Gorilla himself invest in the stocks prior to presenting them to subscribers?  
A. No, that would be considered ''front running" and it is illegal.

Q. Are there any "hidden" costs involved in a Gorilla Trades subscription?
A. No, there are NO hidden costs whatsoever. Here's a look at what the 30 Day Free Trial has to offer.

Q. How many subscribers are there to the Gorilla Trades service?
A. Although this number is not made public, the Gorilla has subscribers representing every state and 50+ different countries.

Getting Started Investing

Q. When a new subscriber first joins, how does the Gorilla recommend starting off? Should a new subscriber simply buy all of the GorillaPicks and GorillaShorts as they come up, or ease into it by buying only a selected number of recommendations?
A. A famous Vice President once said about learning "Better to ask twice than to lose your way once."  The Gorilla would like to use that quote to encourage subscribers not to just dive into the market, entering feet first may help your survival by avoiding the many pitfalls of trading.  Begin by getting familiar with how the system works by reading this page on Getting Started Trading, the Evening Gorilla Email, researching and reviewing the current portfolio, and easing into trading with the potential ideas that coincide within your risk parameters.

Q. Does the Gorilla provide specific targets and/or stop losses?
A. Yes. A 1st target, a 2nd target, and a stop loss level are provided with EVERY potential GorillaPick.

Q. If a stock's stop loss level is raised from a prior stop level, or a target is moved, where and when is a subscriber notified? On the website?
A. All adjustments to stop loss levels and/or targets are made in the Trader's Notes section of the Monday Evening Gorilla Email and are also updated on the posted portfolios in the Subscriber's section of www.gorillatrades.com.

Q. How will I know when to use those specific recommendations?
A. By reading the Evening Gorilla Email, which includes all new recommendations (potential GorillaPicks).

Q. Is it necessary to check my email during the day: i.e. during market hours?
A. No it is absolutely NOT necessary. In very rare cases, an "intra-day" Stock Alert will be sent via email, but ONLY if there are extenuating circumstances such as a day with EXTREMELY large volume!

Q. If a loss should occur, how much should I tolerate so that I am not discouraged if this happens?
A. As with any investment type scenario there is always the potential for losses. The Gorilla always urges subscribers to be patient and stick with the program EVEN if some losses occur. Losses will occur, the important thing is to keep them smaller than your gains. It takes a few months to build a well-diversified, Gorilla Trades portfolio.

Q. What percentage of my assets should I invest in a GorillaPick?
A. There is no specific amount that the Gorilla recommends, however, he does advise that no subscriber EVER invests more than 5%-10% of his/her account in any ONE GorillaPick!

Q. Should I be trading both long and shorts?
A. Yes, the Gorilla recommends that you remain "hedged" at all times.

Q. What size investment account is needed in order to use the GorillaTrades system effectively?
A. The proper size of your investment account is the size that will properly diversify your tolerance for risk.

Q. I cannot afford to buy every GorillaPick that is recommended, in other words, I cannot "duplicate" the GorillaTrades portfolio, how then do I choose the "best" Gorilla positions to invest in?
A. After years of studying a successful portfolio's characteristics, the Gorilla has determined three significant stages of a blooming GorillaPick (see Stock Picks for more).  Stage one:  "Trigger Day."  The stock idea has traded above the previous day's high price within a five-day period (please refer to the Gorilla Dictionary for detailed term explanations).  This stage is designed to alert subscribers of this stock's strength, and should be watched and considered for purchase.  Stage two:  "Confirmation Day."  The stock idea has experienced accumulation beyond its average daily volume levels.  Waiting for this event significantly improves the probability of a successful trade.  Stage three:  First target.  This stage is designed for the trader to realize a portion of the stock's profits.  Although stocks can theoretically rise forever, the Gorilla uses this tool to properly diversify a portfolio (the remainder of the capital is used to invest in new or existing GorillaPicks).  Furthermore, knowing and understanding the current market environment (reference the Banana Barometer for a market overview), evaluating the current portfolio of GorillaPicks, taking notice of risk ratings, and updating your stop levels on a weekly basis can significantly increase your portfolio's return.

Q. How then, will the success rate of the system be affected if I am not participating in every GorillaPick transaction?
A. The Monte Carlo simulation is not used when measuring success.  However, The Gorilla does recognize that technically strong companies with the least resistance advance the farthest during bull market periods.  When researching the portfolio, stick with those GorillaPicks that have "confirmed"these ideas have proven buyers on board!

Q. I noticed that there were numerous GorillaPicks that triggered their stop loss during a few day period some time back, all at a slight loss. Is this an indication of some underlying weakness in the market is about ready to come to the surface?
A. This circumstance is a necessary evil that serves to "weed out" the weaker GorillaPicks in the portfolio. It happens about every six to eight weeks. However, historically, a good percentage of GorillaPicks achieve their first target (with a 10%-20% average gain), before a stop loss is triggered (when the average loss is 6%-8%). At this pace, subscribers find that profits can add up quickly, especially by reinvesting their money into new GorillaPicks or the strongest current GorillaPicks.

Q. How many GorillaPicks are there in the stock portfolio at any given time?
A. On average there are anywhere from 25-50 stocks within the portfolio at any given time.  Stocks are continually entering and exiting the portfolio from "New GorillaPicks" and updated stop levels (keep in mind that all price areas are suggested for risk purposes only; please always trade or invest within your own personal risk parameters).  This approach creates the ideal menu of technically strong stock ideas that can be evaluated by their performance, sector, risk, and profit potential.  The goal of GorillaTrades is to accommodate the many trading styles with the best ideas on the street.

Q. Is it advisable to begin trading GorillaPicks in a severely declining (or bear) market?
A. The Gorilla would not recommend beginning to trade in a NEUTRAL environment, but would rather use tough environments to learn how to utilize the Gorilla Trades system and all of its features to their fullest potential. The Gorilla would recommend reading the Evening Gorilla Email while paper trading, as the education regarding the stock market and trading stocks you receive may very well be worth the cost of the subscription alone!



Q. Do you advise subscribers to make their initial purchase before the stock has its Confirmation Day?
A. The Gorilla Trades system is designed to alert subscribers of stocks ready to explode!  Since high probability trading ideas with guidelines are generally scarce (especially during NEUTRAL environments), stocks may experience erratic price swings as a result of investors or traders jockeying for position. The Gorilla has noticed NO distinct advantage to entering trades prematurely, and has proven that the highest probability (of successful) trades occur post- "Confirmation Day".



Q. Why doesn't the Gorilla recommend a trailing (percent) stop loss as opposed to the fixed targets? If I read the information on the web site correctly, appropriate exit prices (stop loss levels) are re-set every Monday?
A. Correct!  The Gorilla updates appropriate (recommended) stop levels and/or upside targets in the Trader's Notes section of each Monday Evening Gorilla Email. These levels should be viewed as guidelines, and are designed to alert subscribers as to the area that may pose risk to a GorillaPick's strong continuation pattern. The price levels given are suggestions to protect capital and unrealized gains, but should be adjusted to each subscribers individual risk parameters.



Q. If you are recommending, say, on the average 2 GorillaPicks each trading day, does that mean that I have to buy 60 stocks over a 30-day trading period in order to fully utilize your system and be profitable?
A. No.  The Gorilla recommends, for the highest probability, to trade "confirmed" GorillaPicks. The Gorilla's portfolio averages 10-15 "confirmed" stocks per month, but these stocks could be held for 2-4 months depending on their strength. If this number of stocks cannot be purchased, the Gorilla recommends diversifying further by each Stock Pick's Risk Rating.  The number of stocks in your portfolio may vary over time, but it is imperative for proper diversification.  Always update stop-loss levels after reading each Monday's Evening Gorilla Email (which includes the important Trader's Notes section) and make sure to trade or invest realized profits, and further update stop-loss levels in regard to your personal risk parameters.



Q. Can you offer some suggestions on how to better manage the wealth of information that you offer or how I can focus on a smaller segment of GorillaPicks?
A. The Gorilla recommends concentrating on "confirmed" GorillaPicks, which may fit in your portfolio according to your personal risk parameters (Risk Ratings).  Furthermore, always review the current portfolio in the Excel spreadsheet format.  (This link is located at the top of the Current Portfolio page in the secure Subscriber's Website.) This format reviews current portfolio holdings by their percentage distance from their first target, second target, and stop loss level. The Gorilla Trades system is designed to provide a menu of excellent stock trading ideas that are prepared to significantly outperform the overall market.  Exactly how these ideas will be used will be different among the many trading styles.



Q. In what ways does the GorillaTrades system control risk?
A. There are five ways the Gorilla's system is designed to protect itself, but it relies on subscribers to decide which tools are appropriate for their individual investment style.

  • Diversification- Stocks are diversified by selling a portion (currently 75%) of each GorillaPick at its first target. The realized capital is used to purchase more GorillaPicks, while the remaining 25% is left alone to rise to the stars!

  • Exit Strategies- Stop loss levels and raised stop losses are used to protect capital during a GorillaPick's holding period.

  • Confirmation Day- This concept was developed to insure a higher probability of success in each trade.  Entering after a stock has "confirmed" drastically reduces trade risk.

  • Shorts- Carrying a hedge during a market's decline may keep a portfolio protected.  But during the digestion of a new bull trend, shorting stocks has proven to be a disaster.

  • Risk Ratings- This figure denotes a stocks risk (1 being the lowest-5 being the highest). The figure is derived from a multitude of factors that include beta, price action, volume, liquidity, market capitalization, stop out risk, and potential profits goals.

However, the figure that is most relevant to a trade is the amount of risk taken versus the potential return.  While subscribers' entry points may differ, along with their own risk tolerance, a two-to-one reward-to-risk ratio should be the goal. While the Gorilla is screening the market for the next explosive, high probability trade, concentrate on specific tools (Confirmation Day) that may assist in each trade's success.



Q. How can I increase the probability of success with any given Gorilla trade?
A. Wait for the Confirmation Day! Please proceed to the System Tutorial for an overview the Gorilla Trades stock trading system. You can also see the Confirmation Day page. Both pages are a MUST read for any subscriber who wants to achieve the ultimate success in investing!

Q. What is the Gorilla's Top 3?
Included in each Monday evening email, a list of the top three GorillaPicks that appear ripe for entry intra-week, with respect to the current market environment.

GorillaPicks

Q. How are the "GorillaPicks" determined each day?
A.  The GorillaTrades proprietary software program is run throughout the day and at the close of each trading session.  Like Colonel Sanders and his secret recipe, the Gorilla's exact formula for success is a secret. Suffice it to say that the software program "checks" more technical indicators than the colonel had spices!  There's more information on this topic in the subscriber's site, get instant access with your 30 Day Free Trial.

Q. How many picks are there in an average day?
A. There are generally 1 or 2, but occasionally there will not be a single stock that meets each of the 14 strict technical requirements, and the Gorilla would NEVER fabricate new GorillaPicks just to create excitement!  In the past, when several sessions have gone by without a single new potential GorillaPick appearing on the radar screen, it has meant, "Investor Beware!"

Q. Does the Gorilla recommend that I use ALL of the recommended GorillaPicks in the current portfolio or can I pick and choose?
A. The portfolio should be viewed as a menu of technically constructive ideas that have met all of the Gorilla's parameters for success. The ideas that have "confirmed" are even stronger!  So, review your investment objectives, evaluate and choose existing GorillaPicks, or start from scratch and follow the incubation of a top-performer, which follows a distinct pattern: triggers, confirms, pulls back, achieves first target, pulls back again, and then moves higher to challenge its second target.  In either case, always remember to update stop levels each week, after reviewing the special Trader's Notes section of each Monday evening email!

GorillaShorts

Q. Please explain GorillaShorts.
A. GorillaShorts are stocks that meet NONE of the 14 technical parameters in the GorillaTrades formula and are set to drop.  Subscribers profit when GorillaShorts drop in value.  

Q How do you "short" a stock?
A. Since each brokerage has different guidelines, it is best to request the guidelines from the brokerage where you will be placing your transactions.  Those subscribers who are uncomfortable with "shorting" stocks, simply buy puts instead.  However, be advised that trading options involves great risk.  Please consult an investment advisor before you attempt to trade options.

Q. What is the worst scenario in terms of my account and in terms of my personal liability when "shorting?"
A. If you fail to use buy stop orders, your loss could be unlimited, so always use buy stops (which we provide with ALL new potential GorillaShorts).



Q. There haven't been many potential GorillaShorts, and most of them that have triggered never "confirmed." Do you think the GorillaTrades system is biased toward the "long" side?
A. No. The Gorilla only shorts stocks that may have potential technical problems, and have a high probability of declining significantly in price.  Currently, the market is showing signs of digesting a new bull trend; therefore many stocks are experiencing pullbacks, rather than displaying "true" weakness or problems. The Gorilla only recommends short "picks" (GorillaShorts) when the system detects trades that have a high probability for success.  Depending on the strength of the market's directional movement at any given time, the system may be pumping out many new short ideas or only very few.



Q. If a GorillaPick trades slightly lower the day after a recommended buy, should I buy additional shares of that stock?
A. You could, but the Gorilla recommends that you add to the STRONGEST GorillaPicks, not the weakest.

Trigger Points

Q. If a GorillaPick trades higher than its previous day's high, then pulls back, but is not stopped out, once it begins to recover, at what point can a subscriber consider purchasing this GorillaPick if it was missed initially?
A. Assuming the particular GorillaPick is far enough away from its stop loss level (at least 5%), it is OK to purchase at any time.  But, once again, the Gorilla would rather see subscribers add to the strongest performing GorillaPicks.

Q. Once it "triggers," is a brand new GorillaPick necessarily stronger than a current GorillaPick?
A. We have found no significant statistical difference in their results.

Q. How do I purchase a new GorillaPick at the "buy ABOVE" (trigger) price, without watching it all day?
A. Most subscribers use a "buy stop" order close to the trigger price. However, the Gorilla strongly suggests the use of a "buy stop limit" order, in which the limit is no more than 5% higher than the trigger price.  Thus, there is absolutely NO reason to watch the stock market all day.

Q. If I missed the notification to purchase a stock (trigger), for the next five days should I still consider purchasing it or should I consider purchasing only if the stock rises above the previous day's high price?
A. While you may purchase it, the Gorilla would stick to those GorillaPicks that have "confirmed" AND still have a very good upside potential.



Q. How do I find the suggested price above which to purchase a stock (the trigger price) that is already in the portfolio if I wasn't around when it first appeared on the Gorilla Trades radar screen?
A. Make your decision based upon upward profit potential at its current price, but shy away from those close to their stop loss level.



Q. What if a GorillaPick triggers and then later drops during the day, can I still buy it?
A. You could, but if you are waiting for confirmation (to increase the probability of success with any given trade), this behavior is usually NOT the sign of underlying strength in a stock!



Q. What if a GorillaPick triggers and then later drops during the day, can I still buy it?
A. You could, but if you are waiting for confirmation (to increase the probability of success with any given trade), this behavior is usually NOT the sign of underlying strength in a stock!

Stop Loss Levels

Q. If a GorillaPick hasn't hit its target nor its stop loss level for an extended period of time, what should I do?
A. Nothing.  The Gorilla will "aggressively" move the stop loss level upward with the idea of eliminating dormant GorillaPicks.  All adjustments are made on a weekly basis, and found in the Trader's Notes section of the Monday Evening Gorilla Email.



Q. Bill O'Neal recommends selling any stock that falls 7-8% below its purchase price.  I notice that your stop loss level areas are occasionally set lower than that.  How do you determine stop loss areas?
A. Stop loss level areas are automatically generated by the Gorilla's software program and are based upon the "trigger" point of entry. When purchasing GorillaPicks pre- "confirmation," they may need a little wiggle room, especially when they are 5-risk rated and are being purchased in a NEUTRAL market environment. Although the risk seems large, each stop loss level is also based upon a GorillaPick's profit potential. Furthermore, after a GorillaPick "confirms," its stop loss level is moved 2-5% tighter the following week. Please note: Successful portfolios are not built in one week, but over several months.



Q. Would it affect the profitability of the GorillaTrades system if stop loss limits were set tighter that what you recommend?
A. The Gorilla uses the "trigger" to alert subscribers that a new idea is presenting abnormal strength. During the period between "triggering" and "confirming," a GorillaPick may swing abruptly before its next advance and could quickly stop out. However, if a subscriber waits until "Confirmation Day," the GorillaPick will have a higher probability of success, and much tighter stop levels.



Q. Assume I purchase a GorillaPick today at say $15.00 and also place a stop loss order for $14, or 7% lower.  The price moves up to $16.00. I have always adjusted my stop as my profits were locked in. So, I would have adjusted the stop to $14.95, or 7% lower, thus assuring me of a profit, and not a loss. Why does the Gorilla only adjust stops once per week?
A. Over the years, the Gorilla has recognized that a stock trend needs more than a week to develop or diminish. Thus, moving a stop loss up daily (or too quickly) could result in a premature stop out, especially in a highly volatile market. 

First and Second Targets

Q. It's not greed to let profits run since that's why we all invest in the first place.  Why limit profits (by selling at upside targets) once you've found them, since they are so hard to find in the first place?
A. The Gorilla has noticed (especially during NEUTRAL environments) that hard-earned, unrealized gains can diminish quickly. Until the environment provides more clarity, the Gorilla would recommend stacking small profits, while keeping risk in check.

Confirmation Day

Resources: Confirmation Day page, Confirmation Day from the tutorial



Q. The Gorilla has always recommended entering post-"Confirmation Day" in order to reduce trade risk, but what about the sacrificed profits if one enters too late? Is it okay to enter on a pullback, after "Confirmation?"
A. The Gorilla recommends waiting for the price you are willing to pay for a GorillaPick. Although patience is the key to success in the stock market, stocks do not go up forever and eventually pullback in price. And, even though buying on pullbacks is enticing and you may be purchasing at a discount, an exact entry may be difficult when the market is showing weakness. The best bet would be to dollar cost average "UP," into the desired position. This will allow a blended, profitable cost basis, avoiding the risk of averaging down into a losing position. Furthermore, the Gorilla recommends having an adequate amount of capital, to carry an adequate number of positions to properly diversify your account according to your own personal risk parameters. However, the Gorilla would not recommend trading or investing on margin, especially during a weak or neutral market environment. The GorillaTrades system is designed to eliminate the tough, time consuming task of filtering the market for the next explosive stock. Exactly how you use the system and its guidelines is beyond what the Gorilla may recommend and is left up to the individual subscriber.



Q. When using the Confirmation Day, should I enter on the next day's open after Confirmation Day or should I wait for the price to retrace back to the Trigger Price before entering?
A. The probability is high that a "confirmed" GorillaPick will advance much higher.  Although the Gorilla does not recommend chasing GorillaPicks, some stocks buck the trend, and keep advancing higher.  For the ideal entry point, the Gorilla would recommend not waiting for a stock to pullback to its "Trigger Price" (as this could denote weakness), but rather watching how the stock performs versus the overall market, while making your purchase in a price range between the "trigger price" and the prices post- "Confirmation Day".  This is the exact reason that the Gorilla recommends purchasing your desired position in pieces on the way UP.

Setting Up Stock Trades

See Getting Started Trading, Buying Stocks, and the Stock Trading Tutorial



Q. When should orders be placed with my broker/dealer or online account?
A. Most subscribers place their orders either in the evening or before the market opens in the morning. The Gorilla does NOT recommend any after hours trading!



Q. Does the Gorilla recommend using options or margin?
A. While many subscribers use both with good success, they each involve great risk.  Only experienced investors should consider the use of margin or options. Always seek the advice of an investment advisor to determine whether either is appropriate for your specific investment profile.



Q. Does the Gorilla specifically recommend an online trading company?
A. While the Gorilla urges subscribers to use their own discretion with this decision, he has heard good things about several online trading companies such as Scottrade, Ameritrade, and eTrade.  However, using an "all-you-can-trade" type of account with a full-service brokerage can also be ideal, as long as the annual fee is less than 1%-1.5%.

Q. Does the GorillaTrades system work with a Mac-based platform?
A. Yes, a Mac-based system works fine and is applicable to the GorillaTrades system.



Q. Does the Gorilla recommend putting in simultaneous sell/ buy orders for stocks reaching their targets or is this kind of "double execution" too much of a risk?
A. The Gorilla doesn't advise one way or another with this one, but most subscribers use one or the other (stop or target).  In fact, most begin with a stop loss order and "switch" to a sell order at the target, as a GorillaPick approaches its upside target.  The nice thing about using this method is that it requires only a quick analysis of each position you hold either in the evening or in the morning, before the market opens, to determine which order is most appropriate.  If your brokerage allows simultaneous orders, where one order will cancel upon the execution of the other, that is even better.

Q. Does the Gorilla recommend canceling a GTC stop loss order before or after a stock is sold?
A. It does not make a difference.  JUST BE SURE TO CANCEL IT!  Please realize that just because you sell the stock at its upside target, it does not mean that you cannot sell it again if a GTC order remains open!



Q. I was wondering if I should use a stop limit order to prevent getting caught up in gap ups or gap downs?
A. This order is placed to purchase or sell at a specified price (or better), that an investor is willing to pay or accept.  But the Gorilla asks in response, "What if your stock's price is moving in the wrong direction on the gap?"  Are you able to accept the fact that your order might NEVER be filled?"  Thus, the Gorilla recommends using this type of order when entering new trades; it allows you to pay the price that coincides with your desired exit strategy.  Moreover, this type of order can be used to specify levels of entry when dollar cost averaging "up," into a larger position.  On the other hand, when exiting positions, most subscribers stay true to the "Stop Order." This order will guarantee an execution at the "market," after your specified level is breeched, which could end up saving precious capital, especially during tough market environments.



Q. You recommend placing trades after 10:15 AM ET and NOT purchasing GorillaPicks that initially gap up more than 5% does this mean that if there has been ANY 5% uptick in the first 45 minutes of the trading day - regardless of where the price is now - we should not purchase a new GorillaPick?  (In other words, don't place an order unless the stock is "slow and steady." Is that the basic idea?)
A. No, the Gorilla does not want subscribers to chase inflated prices. After reviewing the current portfolio, there have been great opportunities to purchase GorillaPicks days or even weeks after their initial "trigger day." Be patient and only pay the price that coincides with your exit strategy.



Q. In a sense, it seems as though a limit order is exactly the WRONG strategy because it implies you won't settle for anything above the trigger price.  In other words, if I'm buying 100 XYZ @ $47 limit, this means I won't buy it at $47.01, even if the targets are $56 and $63, which would have been a tidy profit.  Or am I missing something fundamental?
A. Limit orders are entered because they specify an exact price; market orders do not and therefore provide much more liquidity. However, most subscribers who make their initial purchase upon trigger will enter a limit a few percentage points above the trigger price.



Q. In regards to the "5% Gap up at the open" rule: Does a stock that does gap up 5% get re-evaluated for future consideration, or is it simply discarded?
A. A "Gap Opening" occurs when a stock opens much higher or lower than where it closed in its previous session. Although this occurrence is an excellent technical indicator of strength, the Gorilla would rather not see subscribers diving into GorillaPicks that have already achieved a significant portion of their projected targets. If a potential GorillaPick gaps up more than 5% at the open, it is immediately removed and is no longer considered a potential pick. However, in many cases a discarded potential GorillaPick will appear on the radar screen again in the future when it is not so over-bought.

Managing Stock Positions

Q. How long should I keep a GorillaPick if it fails to achieve its upside target(s) or its stop loss level?
A. While the quest for BIG returns takes time and patience, incubation periods may differ greatly.  During a GorillaPick's time within the GorillaTrades portfolio (after "triggering"), it is monitored for unnecessary risk (loss of capital potential versus its return potential) on a weekly basis.  The Gorilla monitors each GorillaPick's risk by raising stop levels along the way to its projected upside targets.  If a GorillaPick stalls for long periods of time, or shows weakness against the overall market, the Gorilla raises its recommended stop loss level guidelines in an attempt to keep losses small.  Please always view the Gorilla's figures as guidelines, and trade or invest within your personal risk parameters.

Q. If I am going out of town for a couple of days, or even weeks, should I sell all of my positions before I leave? I probably won't have access to a computer.
A. Most subscribers simply leave their stop loss orders in place, while others check the prices of their stocks daily (either via internet or by the newspaper).

Light Volume Pullbacks (LVPBs)

See the Light Volume Pullback Page or the Investing Tutorial Entry

Q. If you are using the Light-Volume Pullback (LVPB) feature as an entry point for some GorillaPicks, when would the Gorilla recommend selling these stocks?  Would a subscriber use the same stop loss levels and upside target values provided?
A. If you make purchases on light-volume pullbacks (LVPB), the Gorilla recommends using a 6-8% trailing stop, while concentrating on a GorillaPick's second target.



Q. How does a subscriber know when it is okay to make an initial purchase or add to an existing position on a pullback?
A. Your question has been answered by the addition of the Light-Volume Pullback (LVPB) feature.  Although the LVPB list is not perfect, subscribers may pick and choose from this additional "menu" of strong ideas. This list is designed to alert subscribers of current GorillaPicks that have confirmed, have achieved their "first target," currently emerged from a "light volume pullback", and may have much further to advance. Please make sure to update or raise stops weekly to protect unrealized gains during NEUTRAL market environments.  Please always use the Gorilla's figures as guidelines, and always trade or invest within your personal risk parameters.



Q. Would it be safe to assume that the best way to purchase a previously confirmed GorillaPick is to stick to the Light-Volume Pullback (LVPB) list?
A. Maybe, or maybe not.  The requirement for a potential LVPB is that it must have at least achieved its first target.  This denotes mature strength, which may continue when the market regains new strength. Even if the market becomes stuck in a corrective phase for a prolonged period of time, the current confirmed GorillaPicks may turn into some of the market's newly emerging leaders.



Q. I am using your LVPB list as a ''hang in there" list. It seems to me that the GorillaPicks do pull back, but when you publish their names after the market closes, they have already risen. Perhaps, I miss the point. Could you possibly give us those names closer to the market's open?
A. The LVPB list is used to alert subscribers of the GorillaPicks in the current portfolio that have achieved their first target, are currently experiencing a non-damaging decline in price, and may have a high probability of a future advancement.  Many of these stocks are chosen immediately after a clear trend reversal has occurred.  This allows high probability (of success) entries. Using this tool will allow subscribers to "jump" back into strong continuation patterns which have great upside price appreciation potential. Subscribers trading GorillaPicks that are experiencing a LVPB will have a higher probability of success than trading those GorillaPicks which have only "triggered."



Q. In the latest email you list AH as a LVPB.  I don't understand.  The stock was up for the day!
A. The LVPB list is used to alert subscribers of confirmed GorillaPicks in the current portfolio that have met their first target, currently experiencing a non-damaging decline in price, and have a high probability of a future advancement. Many are chosen immediately after a clear trend reversal has occurred, allowing high probability entries. Using this tool allows subscribers to "jump" back into a strong continuation pattern that may have much further to advance. Although LVPB's have not always moved straight up, they have allowed an opportunity for new entry, or to add to an existing position, while providing a higher probability of success compared to purchasing a GorillaPick that has only "triggered."

Subscription Questions

Q. Is it possible to have the Gorilla email sent to two different addresses?
A. Unfortunately, only one email address can be entered per account. However, to make the decision about which account to use, keep in mind that 98% of Gorilla email is delivered at either 8 PM ET on Monday through Thursday or on Saturday afternoon.  Thus, a home address is probably more appropriate in most cases. However, the Gorilla's email is always posted on the GorillaTrades web site, in the secure Subscriber's area, for your convenience. Thus, it can be read from anywhere in the world that has access to the internet.

Miscellaneous

Q. What is the Risk Rating?
A. *Risk Rating- This rating is based upon a combination of share related items, including a stock's market capitalization, shares outstanding, volatility and current "tradable" float.  In addition to these share-related items, the possible risk to possible return ratio is also taken into consideration.  The scale ranges from 1-5, with 5 being the highest risk and 1 being the lowest risk.



Q. Does the overall performance of the stock market always directly affect GorillaPicks?
A. A GorillaPick is determined only by its individual performance, regardless of the overall market's performance.



Q. Why do the Banana Barometer's numbers differ from the numbers of resistance and support at the end of the evening commentary?
A. The Banana Barometer depicts short-term technical support and resistance levels, while the commentary's levels represent longer term support and resistance.



Q. When dollar-cost-averaging UP, are there some guidelines for understanding whether you are properly averaging up, as opposed to overpaying for a stock?
A. When purchasing new GorillaPicks, concentrate on a point of entry after a "Confirmation Day" has occurred.  If a pullback is desired, watch it!  Analyze how it compares to the market's overall behavior.  If the overall market is moving higher and the stock is falling on heavy volume, beware!  However, if the stock has recently broken higher, then pulled in because of overall market weakness (especially on lighter volume), any further strength may be a great entry point! 



Q. My question relates to the trend lines displayed in your historical price/volume charts for individual stocks. What name is given to each of the three lines?
A. The upper line gives the subscriber a view of the potential targets involved with the trade. The middle line denotes the stop area suggested. The bottom line is the 21-day average volume line. All lines are drawn on a weekly chart to illustrate pure strength.  The Confirmation Day is a breach of the 21-day average volume line on a daily chart.



Q. Some GorillaPicks trade on relatively light volume. However, they consistently confirm and go on to meet their upside targets. Are these stocks really tradable (liquid) and are they viable stocks for us to be purchasing and holding?
A. The Gorilla only considers stocks that have at least $1 billion in market capitalization. Therefore many of the low-volume stocks will be "larger" small caps at the least.  The Gorilla recommends these stocks to subscribers because of the immense advantages of a low cost basis; the institutions are on the hunt for the market's next big winner! Institutional funds have guidelines that restrict them from purchasing large portions of any one issuer's outstanding shares.  In fact, some institutional funds are not able to make small caps a significant position in the fund.  To overcome these limitations, the fund usually has to file with the SEC, which tips their hand and inflates the stock's previously attractive price. However, the Gorilla consistently reminds subscribers about the importance of diversification, "Confirmation Day," Risk Ratings, raising stop levels, and about always trading within your personal risk parameters.



Q. Do subscribers have any significant influence on the price movement of GorillaPicks or GorillaShorts?
A. That depends. While the Gorilla only considers stocks that have at least $1 billion in market cap (for liquidity and institutional interest purposes), it would solely depend on supply and demand for a particular stock. The Gorilla has an overwhelming number of very happy subscribers, and there is no way of telling if one or more is an institution.

Q. Do the subscribers have to act quickly on the recommendations because of the fact that a GorillaPick's price may move up or down significantly, while they procrastinate a few hours or even a day or two?
A. The Gorilla recommends waiting for the price you are willing to pay f or a particular stock. Patience is the key for success in investing. No stock rises forever and eventually every stock pulls back in price. 

Q. I have traded for several years now using CANSLIM. I ALWAYS stop out a stock which trades back below its pivot point. Is your Trigger Price the same or different? Does a trade back below the Trigger Price indicate weakness?
A. No, because the Gorilla's ideas are not just "pivot" entries. Some can be considered as continuation patterns, after the pivot has occurred.  The "Trigger Price" is not considered the "pivot point." However, the "Confirmation Day" may be considered as a potential "pivot point" because of the above average volume follow-through required.  This is the precise reason that the Gorilla tightens stops after a stock "confirms."



Q. How often is the website updated and at about what time does the update occur?
A. The website is updated 5 times per week at approximately 7 PM ET.  However, the Portfolio on the web site is only updated ONCE a week (each Friday evening).  Thus, if you purchase a new GorillaPick that followed through on a Tuesday and do NOT see it in the Current Portfolio on Thursday, don't panic!  It will appear in the portfolio when it is updated on Friday evening.  Also, for those subscribers who use Microsoft Excel, there is a link at the top of the Portfolio Page to print the portfolio in Excel format.  This format includes much more than the regular Portfolio page does.  You must see it and/or print it!

Q. What should I do if I am confused or just need to ask a question or two?
A. After reading this FAQ section thoroughly and reviewing the System Tutorial at www.gorillatrades.com/tutorial, if you still have a question that is not covered, use the contact form for a response.