This message is not meant to scare you. Its purpose is to make you think.
The GorillaTrades’ portfolio now holds 100 stocks! Never before in GorillaTrades’ 18-year history has the portfolio grown so large. Typically, before it does, the natural action of the stock market “cleanses” the GorillaTrades portfolio. (The most recent cleansing occurred in August of 2015!) Rarely does so much time pass between cleansings. Since stop loss levels are raised weekly to protect subscribers’ hard-earned profits it is only common sense that a majority of GorillaPicks will stop out whenever the market pulls back quickly or severely. However, the results are not always negative.
Many of the GorillaPicks that stop out during a cleansing do so after achieving their first target, at which point a profit was “booked” on 75% of the position. Other GorillaPicks that stop out even produce profits on the remaining 25% of the position. Still others produce significant profits on the remaining 25%. Additionally, any losses that occur are quite a bit smaller than the profits. Keep in mind that the losses may be even larger with highly volatile 5 risk-rated GorillaPicks. It is not ironic that the largest percentage of the GorillaPicks that stop out during market pullbacks are either 5 risk-rated or GorillaPicks that never confirmed (or both).
The Gorilla’s words should serve as a reminder that the cleansing process is a necessary evil. It helps us to retain those GorillaPicks with the most strength, while eliminating those that are the weakest. (Actually, the conclusion of a “cleansing” has always been the signal to become very aggressive.) This is exactly how a successful portfolio is built! As seasoned investors know, a powerful portfolio is not built overnight. After all, no portfolio, no matter how large, can hold too many positions for too long.
The Gorilla is once again hearing, “but, this time is different.” This time, like any other time, is not different. This is not to say that the market will correct next week or next month. But, those investors who don’t let their emotions become involved and stick to the game plan, will be winners! The Gorilla’s advice right now? Ride the strongest GorillaPicks, and don’t fish for the weaker ones. Most importantly, always practice proper risk management (don’t have too many eggs in one basket).