About GorillaTrades, Inc.
GorillaTrades 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.
GorillaTrades was incorporated in 1999. The Gorilla spent the past twenty years developing the methodology used successfully today by GorillaTrades. 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!
GorillaTrades is an advertising partner with each of these companies and is a totally independent entity.
No, that would be considered “front running” and it is illegal.
No, there are NO hidden costs whatsoever.
Although this number is not made public, the Gorilla has subscribers representing every state and 55 different countries, and a few tropical rain forests. The Gorilla has no time to count because he is too busy looking for fresh stocks ideas.
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 the nightly e-mails, researching and reviewing the current portfolio, and easing into trading with the potential ideas that coincide within your risk parameters.
Yes. A 1st target, a 2nd target, and a stop loss level are provided with EVERY potential GorillaPick.
All adjustments to stop loss levels and/or targets are made in the Trader’s Notes section of the Gorilla’s Monday evening email and are also updated on the posted portfolios in the Members section of www.gorillatrades.com.
By reading the Gorilla’s nightly email, which includes all new recommendations (potential GorillaPicks).
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!
As with any investment type scenario there are always losses. The Gorilla always urges subscribers to be patient and stick with the program EVEN if some losses occur. As any good investor knows, losses will occur, but the important thing is to keep them smaller than your gains. It takes a few months to build a well-diversified, GorillaTrades portfolio.
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!
Yes, the Gorilla recommends that you remain “hedged” at all times.
The proper size of your investment account is the size that will properly diversify your tolerance for risk.
After years of studying a successful portfolio’s characteristics, the Gorilla has determined three significant stages of a blooming GorillaPick.
– 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, 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.
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!
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.
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 Picks” 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 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.
The Gorilla would not recommend beginning to trade in a NEUTRAL environment, but would rather use tough environments to learn how to utilize the GorillaTrades system and all of its features to their fullest potential. The Gorilla would recommend reading the nightly e-mails 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!
The GorillaTrades 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”.
Correct! The Gorilla updates appropriate (recommended) stop levels and/or upside targets in the Trader’s Notes section of each Monday e-mail. 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.
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 Gorilla 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 evening’s 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
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 Members area.) This format reviews current portfolio holdings by their percentage distance from their first target, second target, and stop loss level. The GorillaTrades 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.
There are five ways the GorillaTrades 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.
Wait for the Confirmation Day! Please proceed to the System Tutorial for an overview. There’s more information on this topic in the Subscriber’s area, gain access when you sign up for your 30 Day Free Trial. This is a MUST read for any subscriber who wants to achieve the ultimate success in investing!
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.
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!”
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!
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. The Gorilla’s Top 3 are refreshed each Monday in the Gorilla’s Evening Email.
Yes, you can purchase it like a normal GorillaPick and sell 75% at the first target to lock in some gains. You could also wait for a pullback. Or you could purchase a smaller position, maybe 25% of your normal size (since most subscribers would have sold 75% already, or will soon do so) and dollar cost average on the way up to add to your position.
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.
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.
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).
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.
You could, but the Gorilla recommends that you add to the STRONGEST GorillaPicks, not the weakest.
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.
We have found no significant statistical difference in their results.
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.
While you may purchase it, the Gorilla would stick to those GorillaPicks that have “confirmed” AND still have a very good upside potential.
Make your decision based upon upward profit potential at its current price, but shy away from those close to their stop loss level.
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
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 Gorilla’s Monday evening email.
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.
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.
While there are various types of “orders” and strategies to exit a trade, most important, the method chosen should match your individual trading objectives and remain consistent with your system of discipline. The “exit strategy” of trailing stops is continually adjusted based upon fluctuations in the market price, but always maintains the same percentage below a stock’s market price. This trailing-stop “exit strategy” is commonly used in conjunction with trades holding generous unrealized gains or trades that have become stagnant within a portfolio. Example: If stock XYZ trading at $50 holds a 30% unrealized gain, one might consider setting a trailing-stop at 5% below the current price. Whether the whole or part of the stock position is prepared for sale, there has been an objective identified, as the minimum profit to be earned from the trade; 25%.
Note: the “current portfolio” in Excel spreadsheet format is completely operable to accommodate any adjustments to individual figures for determining potential points of entry or exit. The areas within the current portfolio DO NOT always maintain the same percentage below the market price of each GorillaPick, and may be set at levels to accommodate each GorillaPick’s respective “Risk Rating” or to realize gains prematurely in uncertain market environments. Furthermore, before using the trailing stop technique as an “exit strategy,” contact your account custodian for further explanations or questions.
However, an “exit strategy” is any method used to defend risk according to your personal risk parameters. This strategy should reflect your expected return, which compensates you for bearing this risk. When determining potential areas of exit by setting “stop orders” or notification by “alerts,” the key is to be decisive, while keeping your risk and losses to a minimum. The Gorilla updates appropriate (recommended) stop levels and/or upside targets in the Trader’s Notes section in each Monday evening email. These levels should be viewed as guidelines, and are designed to alert subscribers to the area that may pose risk to each GorillaPick’s strong continuation pattern. The price levels provided are suggestions to protect capital and unrealized gains, but should be adjusted to each subscriber’s individual risk parameters.
First and Second Targets
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.
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 o r 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.
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 Trades
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.
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%.
Yes, a Mac-based system works fine and is applicable to the GorillaTrades system.
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.
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!
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.
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.
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.
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.
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 s top 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.
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 (LVPB’S)
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.
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.
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.
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.”
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.”
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.
*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.
A GorillaPick is determined only by its individual performance, regardless of the overall market’s performance.
The Banana Barometer depicts short-term technical support and resistance levels, while the commentary’s levels represent longer term support and resistance.
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!
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.
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.
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.
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.
The website is updated 5 times per week at approximately 7 PM ET.
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, simply click here to contact us.