GorillaTrades is a global online stock selection subscription service. Stock picks and updates are regularly offered to GorillaTrades subscribers for consideration, based on their individual investment objectives and risk tolerance. What sets GorillaTrades apart from other subscription services is the use of exact stop loss levels and upside targets which are updated weekly. More than 6,000 stocks are sifted through daily against 14 technical indicators for potentially explosive growth. GorillaTrades boasts subscribers in over 55 countries.
The founder and CEO of GorillaTrades, Ken Berman, who has gone by the moniker “the Gorilla” for two decades, is predicting that the S&P 500 index will breach 3,500 in 2020 this year. During the last two years, Mr. Berman’s forecasts have been prescient. Back in 2017, Ken predicted the Dow Jones Industrial Average would break the 24,000 level by 2019. In December of 2018 amid a 17% correction, Berman forecast the S&P 500 would reach new all-time highs in 2019. His 2020 forecast of 3,500 is just behind the Street high forecast of 3,600 in a survey of major brokerages and institutional investors. Commenting on the forecast, Ken Berman noted that wildly bullish technicals are predicting a major rally following two years of consolidation, with a base-case target above 3,500 in the S&P 500. The volatile pullbacks this year, together with the widespread recessionary fears, provide a “Wall of Worry” for the rally to feed on. The global economy is sluggish, but the U.S. growth has remained stable, and election years in the U.S. are usually bullish.
Berman also points out that markets has the support of central banks, with the Fed and the majority of the global central banks already being in easing cycles. Besides the monetary stimulus, further fiscal measures in the U.S. are expected ahead of the election, and Europe might also resort to massive fiscal stimulus. And, while valuations are rich by historic measures, interest rates are lower than ever in modern history, and the cheap funding will continue to boost stocks through buybacks. Lastly, Berman mentions that corporate earnings remain resilient in the face of the global gloom. Further, since balance sheets are still healthy, even a small uptick in economic activity could result in significant earnings growth.
What does this mean for subscribers of GorillaTrades? Most likely, even more profits than they are already accustom to. You see, the GorillaTrades radar sifts through over 6000 stocks each night looking for only those stocks that meet each and every one of the 14 different technical parameters that the Gorilla has found to be present in most stocks before they make explosive upward moves. Included with each GorillaPick, is a stop loss level, a first target, and a second target, which work together to eliminate the guess work and the time-consuming effort involved in successful stock investing. The first target may take a few days or a few weeks to be achieved. Subscribers are advised to sell 50%-75% of their position at this target, depending on the overall market environment (mainly for diversification purposes). The second target may take a few weeks or a few months to be achieved. On average, only the absolute best one or two stocks that the Gorilla finds are listed for potential purchase each evening, however, not all of these will actually enter the portfolio.
As the size of the GorillaTrades’ portfolio increases, the Gorilla understands that not every new stock idea can be purchased. Introducing the theory of the First Target; an innate way the system can be diversified.As GorillaPicks achieve their first target, a portion of the position is suggested for sale. Subscribers are made aware of this percentage, which varies on overall market conditions. The Gorilla advises subscribers to sell 50%-75% of their position at the first target, while the remaining portion is left to grow towards the second target. If the amount of capital available to you is limited, you may decide to sell 75% at the first target. However, if capital is not an issue, you may decide to only sell 50% at the first target.
The remaining portion is left to grow, possibly to the stars! The excess capital (which is always a profit) is used to purchase new GorillaPicks or to add to some of the strongest, proven, top-performing positions. Over a period of time (usually 3-4 months), your portfolio will have weeded out the weakest GorillaPicks and retained the strongest.
The use of Stop Loss Orders has proven to be even more important than upside targets over the past several years. In fact, it is THE MOST IMPORTANT FACTOR (BY FAR) FOR TOTAL RETURN! While taking losses is inevitable in investing, the important thing is to avoid BIG losses. Stop loss levels are routinely managed and raised, as GorillaPicks appreciate in price. GorillaPicks that have confirmed will generally have much tighter stop levels than GorillaPicks that have simply triggered. Raised stop loss levels are communicated to subscribers weekly, via the Trader’s Notes section in each of the Gorilla’s Monday evening email.
With the use of stop loss orders, there is absolutely no reason why any subscriber has to “watch” the market during the trading day. That is precisely why GorillaTrades is here ! The process is fully mechanical. GorillaTrades takes the emotion out of investing; the number one reason for investor failure! Note: Always use the Gorilla’s figures as guidelines, and realize gains and losses according to your personal risk parameters. Furthermore, the Gorilla recommends researching the type of stop order that is appropriate for your specific style of trading.
GorillaPicks that experience pullbacks may NOW have more room to advance (refer to the LVPBs and RTR tools for our advised strategies). The First Target strategy not only diversifies your portfolio and captures profits, but also helps to avoid steep declines that can steal hard earned, UNREALIZED gains.
The LVPB list is used to alert subscribers of GorillaPicks in the current portfolio that have achieved their first target, but are now experiencing a non-damaging decline in price. This is an opportunity for subscribers to potentially jump back into strong continuation patterns that may have a high probability of future advancement.
Many of these GorillaPicks are chosen immediately after a clear, short-term trend reversal has occurred. These stocks are exhibiting strength, regardless of the overall market environment. This area may provide the opportunity for a high probability entry. Whether using this tool to initiate new purchases or add to existing positions, the Gorilla recommends concentrating on second target goals, while always carrying an exit strategy based upon your personal risk tolerance.
At times, like during steep market sell-offs or a very strong portfolio, there will be an abnormally large number of Light-Volume Pullbacks (LVPBs). At other times (when the overall market becomes over-extended), there may be no LVPBs. This feature assists GorillaTrades subscribers in making wise investment decisions; those with the greatest probability of success.
These picks are among the scarcest picks. The picks that appear on this special radar screen are meant to be a “bonus” to the GorillaTrades service. Unlike GorillaPicks, you are on your own with these picks and do not receive ANY guidance. Additionally, the market cap of these stocks can sometimes be VERY low and they can be quite volatile. Only more aggressive subscribers should consider these picks. These picks are meant to have longer holding periods (several months in most cases). The charts of these stocks will not always follow the text book definition of a true GorillaPick, but are considered for their extreme return potential. The charts of these stocks frequently resemble “early-stage,” or premature, cup-and-handle patterns. Please always carry an exit strategy with each trade, and never invest more than 10% of your capital in any ONE position!