Integrated Stock Research
In case you're looking for the original trading guidelines,
tips, and company profile included with the original release of the
GorillaPick, simply click any GorillaPick's symbol to go to its individual
stock page. Each new GorillaPick is released with recommended trading
parameters, trading tips, and a company profile. However, these GorillaPicks
aren't fully recommended for trading until they've achieved their
Confirmation Day. With the Menu of Ideas, you can wait until the GorillaPick
is added to the Recently Confirmed section, then click this convenient
hyperlink, and you'll have all of the pertinent information right
in front of you. Each individual stock page also includes the original
daily chart of the GorillaPick including its Stop Loss level, Trigger
Price, Confirmation Volume level, 1st Target, and 2nd Target. |
Trigger Day and Confirmation Day
We just alluded to the fact that though a New Potential
GorillaPick (or GorillaShort) has been presented, it's not yet recommended
for purchase. There are two additional checkpoints that solidify its
investment potential; whether the pick has triggered and whether it's
experienced a Confirmation Day. The requirements to attain both of
these checkpoints are provided with every New Potential GorillaPick,
as it is shown in the example below.
The ABC Co. (ABC): ABOVE $75.74, with an $83 first target, a $90 second target, and a $69.50 stop loss. Confirmation Volume Area= 800K Risk Rating= 3.
To trigger, a GorillaPick has five days from when it was first listed
to trade above its trigger price (in this case $75.74). If a potential
GorillaPick fails to trigger within five days, it will not be considered
for purchase. There is no need for you to actively monitor GorillaPicks,
as each will be updated in the Menu of Ideas in bold the evening after
it has triggered. More on the prerequisites for a stock to post its
Confirmation Day will be explained below.
The Importance of Confirmation Day
After a “GorillaPick” has triggered, it is recommended to wait for it to experience a “Confirmation Day” prior to the initial purchase. The “Confirmation Day” is a concept that was developed to help subscribers avoid "false"
stock moves that trigger a GorillaPick on only the illusion of strength. Waiting for a Confirmation Day means waiting for the appropriate volume to fortify a GorillaPick’s desired direction. While waiting for a GorillaPick to experience its Confirmation Day, subscribers usually give up a small percentage of their potential profit (usually 3-4%). However, the benefit comes in avoiding GorillaPicks that trigger, but never confirm, as nearly all of these end up losers. Waiting for a “Confirmation Day" has proven to reduce trade risk and increase the probability of success in a trade, while helping to preserve capital during negative market environments.
It should be noted that during strong periods in the market, subscribers
can more liberally enter orders without waiting for the Confirmation
Day because a very large percentage of GorillaPicks do go on to confirm.
However, during weak periods, in which fewer GorillaPicks confirm,
waiting for a Confirmation Day is paramount! It could very well make
as much as a 10%-15% difference in your overall return! Also, since
waiting for a Confirmation Day may result in purchasing GorillaPicks
at a slightly higher price, the recommended stop loss level is raised
to further reduce any unnecessary trade risk.
Note: GorillaTrades always tracks stock performance in the Current
GorillaTrades Portfolio based upon the Trigger Price, as more
aggressive subscribers still purchase at the trigger price (or even
before!)
What Exactly is Confirmation Day?
Confirmation Day - An event that occurs as a result of above average daily volume that fortifies a stock's desired direction. Confirmation Day can happen at any point in time that a stock trades at, or through, its "trigger price," with above average volume, and has been authorized for purchase under GorillaTrades rules.
A GorillaPick can “trigger” and “confirm” on the same day if the appropriate volume is present. The Confirmation Day is an event and not an exact price. Entry points after Confirmation are at the discretion of the subscriber.
Trigger Day vs. Confirmation Day
Does a subscriber make his/her initial purchase on the Trigger Day or on the Confirmation Day? The answer rests in the individual subscriber's risk-tolerance and portfolio needs.
While GorillaTrades will always report the results of EVERY GorillaPick and GorillaShort that triggers (using the trigger date as the purchase date), a majority of subscribers wait until a GorillaPick or GorillaShort "confirms," before they make their initial purchase. By waiting for "confirmation," and sometimes giving up a few percentage points in potential profit, the probability of success with each Gorilla trade is greatly increased. And, since almost every GorillaPick that does NOT confirm produces a loss, subscribers' actual results are often even better than GorillaTrades' overall posted performance.
Of course, you're welcome to make your initial purchase at the trigger price (or before), as many aggressive subscribers do. In fact, in an "up" market, almost ALL GorillaPicks go on to confirm, so in this circumstance, there's less incentive to wait for the Confirmation Day. More aggressive subscribers receive a jump-start since they are buying in earlier. However, with every advantage, comes a disadvantage; the aggressive subscribers will also end up with the losers that never do go on to confirm. The Gorilla simply suggests that those subscribers who wish to increase their probability of success with any given Gorilla trade, give up the average of 3%-4%, by waiting for the stock to post a Confirmation Day. The Gorilla leaves the choice of exactly how to use the Menu of Ideas to the discretion of each individual subscriber.
For more Confirmation Day Examples click Here.
The Gorilla's Top 3
These are 3 GorillaPicks that have been singled out
because they appear ready for entry at any time during the week. They appear especially in tune with the market environment and may be
suitable for entry at any point during the week they were issued. The
Gorilla's Top 3 are regular GorillaPicks and should be treated as such. A new set is released each Monday in the Gorilla's Evening Email. |
