Gorilla Trades Helps Investors Pick Explosive Stocks Without Having to Conduct Time Consuming Resear
By: Paul S. Allen | Posted: 26th July 2007
Gorilla Trades’ proprietary, scanning software searches through over 6,000 stocks each night, returning only those that meet each of the Gorilla’s 14 different technical parameters found in potentially explosive stocks. Each Gorilla Pick is accompanied by a trigger point, confirmation point, first target, second target, and a stop-loss level.
The ‘Trigger Point’ is the price at which a Gorilla Pick is available for purchase. To trigger, the Pick must trade above the high of the day before its initial listing in the nightly e-mail (nightly Gorilla e-mail keeps tabs on the market and notifies the subscriber of portfolio updates.) Once the stock has reached its trigger point, some, more adventurous, subscribers may buy, while others will wait for the ‘Confirmation Day.’
Waiting for the ‘Confirmation Day’ can increase the probability of successful trading. The concept was developed to help avoid false stock moves from triggering a Gorilla Pick on a misconception of strength. During strong periods in the market it is not crucial to wait for a confirmation, however, during weak periods it can play a significant role in the stock’s overall return.
The ‘First Target’ price is that at which the Gorilla suggests a subscriber sells a portion of their stock to ensure some sort of gain. The recommended portion is usually 75% in weak and neutral markets and 50% in strong markets. This allows the subscriber to experience some profit while not forgoing the opportunity for continued growth. Over time, usually three to four months a subscriber’s portfolio will consist of only the strongest of the Gorilla’s picks.
The ‘Second Target’ price is similar to a stretch goal – it is rare, but very profitable when achieved. If a stock does reach the second target the Gorilla recommends selling while it is hot, although a Gorilla Pick will remain in the portfolio until it shows any weakness or reverses its upward trend.
The Stop Loss point has proven to be the most important aspect of ensuring a positive total return. Taking a loss when investing is an inevitability; the key is making sure those losses are marginally small, and avoiding the big ones. The Gorilla’s stop loss levels are managed and raised as Gorilla Picks appreciate in price. This stop loss point keeps subscribers from losing too much money on any given stock.
In addition to the main function of Gorilla Trades, there are several other features that come with a subscription. Every evening, subscribers receive an e-mail from the Gorilla which includes features such as, increases in stop-loss levels, Gorilla commentary analyzing the day’s action and a research post where subscribers have access to charts, company profiles, and trading tips. Furthermore, the Gorilla offers a risk rating tool, the ‘Banana Barometer’, a light volume pullback alert, return to risk ratio tool, and a special situations radar screen. To learn more about these features and to subscribe to Gorilla Trades visit the Gorilla at http://www.gorillatrades.com.
About the Author
Gorilla Trades, incorporated in 1999, offers a risk-controlled, market tested, proprietary system which generates a menu of stock ideas that have consistently proven to identify stock trades with explosive price appreciation potential.
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