An application of the stock concepts covered through this introduction to Gorilla Trades
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GorillaTrades provides a variety of strong stocks that are meant to be custom fit to your personal portfolio. All figures provided are to be used as guidelines and should be adapted to fit each subscriber's personal trading style.
For example, if you're an aggressive investor, you might
purchase New Potential GorillaPicks as soon as they
are posted, or upon triggering, whereas a more conservative
investor might shy away from higher Risk-Rated GorillaPicks,
and purchase only after Confirmation Day.
The Gorilla encourages subscribers to be creative with their selections and use GorillaPicks in conjunction with their personal trading style.
The following is a sample of the life of a GorillaPick, designed to demonstrate the features of the GorillaTrades System as they intertwine together. |
New Potential GorillaPick Stage
Scanning the Evening
Gorilla Email, you see a succulent New Potential GorillaPick,
which has passed the Gorilla's scrutiny. You continue,
reading through the company overview section and review
the Trader's Tips. Everything looks great and you are
now ready to make your move... Whooa, friend - sit tight
for a minute. Think of each GorillaPick as it fits in
with the diversification strategy of your portfolio.
Patience is also key in waiting to see how each New
Potential GorillaPick responds. Remember that New Potential
GorillaPicks are simply meant to be prospective candidates,
but must prove themselves through "Triggering,"
and then "Confirming," in order to be fully
recommended under the GorillaTrades System. As these
checkpoints are passed, this GorillaPick will appear
in the corresponding section of the Menu of Ideas in
bold type to highlight the update.
After Confirmation Day, the entry point is at the discretion
of the subscriber, so keep tabs on the stocks in the
"Recently Confirmed" section of the Menu of
Ideas.
You may, of course, enter into any GorillaPick prior
to Confirmation Day, as many aggressive subscribers
do, but the typical trade-off is a slightly lower point
of entry in exchange for disproportionately more risk.
Unconfirmed GorillaPicks can be especially dangerous
in neutral or bear markets, as many picks will never
achieve their Confirmation Day. However, this is actually
a good thing for those patient enough to wait - the
GorillaTrades System is doing its job by filtering out
the quick losers, before they even make it to subscribers!
Since there's no official point of entry after a GorillaPick has achieved its Confirmation Day (its at the subscriber's discretion), GorillaPicks are entered into the GorillaTrades Portfolio at the trigger price. Accordingly, there will be many picks included in the records that were never even meant for purchase, but the Gorilla takes full responsibility for all GorillaPicks - even if subscribers are advised otherwise. Subscribers who wait for GorillaPicks to achieve their Confirmation Day before purchase avoid every GorillaPick that stops out or never confirms - and may therefore log a better return than the official GorillaTrades portfolio.
You'll notice a Risk Rating is provided with every New Potential GorillaPick. This scale ranges from 1-5 depicting a stock's volatility. A GorillaPick's Risk Rating should always be taken into consideration, and understanding the Risk Rating is as simple as the adage, "the higher the risk, the higher the return." A high Risk Rating usually defines a highly volatile stock, which could result in larger profits OR losses. GorillaPicks with lower “Risk Ratings” usually take longer to achieve their projected goals, but provide the least amount of potential trade risk.
Note: If you don't mind volatility, check out Special
Situations Picks - these picks have proven
to be very enticing in terms of their historical returns.
These rare picks are issued in the evening Gorilla email,
and are also listed in the Trading Post section of the Subscriber's site.
These picks are meant to be a bonus to the GorillaTrades
service. Unlike GorillaPicks, you do not receive ANY
guidance with "Special Situation" picks. Subscribers
are "on their own" with these picks. In addition,
the market cap of these stocks can sometimes be VERY
low and they can be quite volatile. Only more aggressive
subscribers should look at this area. These picks are
meant to have longer-term holding periods (several months
in most cases). Special Situation picks appear less
frequently, but when they do appear, they often do very
well! (The market capitalization of these picks is always
less than $1 billion.) |
Rules of the Jungle
Select
GorillaPicks that fit your personal portfolio in terms of volatility, risk, market sector, and personal comfort. Once you're ready to invest, make sure to follow the stock trading tips, and your personal risk tolerance.
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Post-Purchase Adjustments
Following your initial investment, it is important to
pay attention to the Trader's Notes section in each Monday's
Evening Gorilla Email to note adjustments of stop levels
and/or upside targets. The Current
GorillaTrades Portfolio, also contains the status
of all current GorillaPicks, including their current stop
levels. The stop level of a GorillaPick is updated as
it matures, in order to preserve your gains, and capture
profits to reinvest in New Potential GorillaPicks or to
take a larger stake in more promising, existing GorillaPicks. |
Management of Positions
There are several GorillaTrades features / strategies that can be used to manage existing positions:
Light Volume Pullback (LVPB)
When a stock shows signs of weakness, the LVPB tool helps to determine whether it may be a temporary pullback - a good possible entry point - or whether it's time to get out while you can. A stock's volume level during a pullback serves as a primary indicator of the stock's strength, and the Light Volume Pullback tool is centered around just this. Most pullbacks that signal the beginning of a serious drop occur on heavy volume. A more normal, orderly pullback (which can be an opportunity) typically occurs on lighter-than-normal volume. The GorillaTrades LVPB tool scans the strongest stocks of the current GorillaTrades portfolio for such opportunities - good points to add to a current position, or even initiate new entries into trades.
Dollar Cost Averaging Up (DCA Up)
Dollar Cost Averaging Up (DCA Up) is defined as the incremental reinvesting in a stock during its growth (as opposed to investing the total sum up front, or in increments as the stock is declining). This strategy allows you to buy into strength as the stock climbs, or in case the stock retreats, DCA Up leaves less capital at risk as opposed to investing it all up front.
The best scenario in a DCA Up strategy is to time your incremental purchases with slight "dips" or pullbacks, as a stock continues to grow. The LVPB tool is a great tool to identify these ideal points of entry - dips along the way of continued growth.
The Return to Risk Ratio (RTR)
At a glance, this ratio gives the amount of potential return in comparison to the risk of the stock stopping out.
A larger RTR figure indicates that a GorillaPick is closer to its stop-loss level than to its second target. It can also detect GorillaPicks that are experiencing a mild pullback. The higher the number, the greater the risk that a GorillaPick may stop out, but the losses incurred will be small in relation to the potential rewards. These charts will generally show a downward sloping entry point, closer to the recommended stop area.
Conversely, a smaller RTR figure indicates that a GorillaPick is closer to its second target than it is to its stop-loss level. These GorillaPicks are exhibiting strength versus the overall market. The smaller the number, the less risk there is that a GorillaPick will stop out, though the losses incurred may be larger in relation to the potential reward. It detects GorillaPicks exhibiting strength vs. the
overall market. This chart will generally show an upward sloping entry point, closer to potential target.
The Gorilla encourages subscribers to be creative using this ratio, but at the same time, to be careful of GorillaPicks that might have extremely attractive RTR ratios, but are very close to their stop loss levels. This kind of trade could easily result in a very small, but quick loss. Additionally, shy away from GorillaPicks that have not "confirmed," or are holding unrealized losses. And, as always, please view the Gorilla's figures as guidelines, and note each GorillaPick's "Risk Rating." |
Harvesting Your GorillaPicks
The First Target is set where GorillaTrades believes
the initial surge of technical momentum will let out.
Accordingly, 75% of your position is advised to be sold
at this point to free up capital to invest in new GorillaPicks
(for diversification purposes), while the remaining 25%
is left to ride out the rest of the trend.
The First and Second Targets are only part of the equation
though - the Stop Level plays a critical role in the overall
performance of your portfolio, and GorillaTrades regularly
monitors and raises Stop Levels to help keep any losses
to a minimum, and to lock in profits.
Note that all GorillaPicks that have closed out according
to the Gorilla's parameters; either as a result of hitting
a Stop Level, a Raised Stop Loss, or achieving its First
or Second Target, will be listed in the Recently
Closed Transactions section on the Subscriber's website. |
Trade a Minute for a Month!
Refer a Friend, Earn a Free Month! For each referral who simply registers for a 30-day free trial to the GorillaTrades service, an additional 30 days is added to the length of your CURRENT subscription, and you receive this credit regardless of whether or not your referral continues as a paid subscriber! They simply need to REGISTER for their own 30-day, no-obligation, FREE trial. Conceivably, with an average of one referral per month, you would never have to pay for the GorillaTrades service again! Conceivably, after your initial payment, with an average of one referral per month, you'd never have to pay for the GorillaTrades service again! Click Here NOW to get started with your referrals, or click the link in the Subscriber's site. |
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