An application of the stock concepts covered through this introduction to Gorilla Trades

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.

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.