Investor Spotlight

Sunday, September 24, 2017

My Profits Are 2.56 Times My Average Losses

Making money in the market is all about controlling your losses. Before you take any stock position, make sure you have a well written 'Trade Plan'. Every trade plan must have:

Loss target
Profit target
Time target (how long to be in the market)

Out of the 27 stock positions I had highlighted last week, total of 10 positions were closed. The profit and loss for each of those positions were:

$RACE -4% (met my loss target)
$UNH -0.75% (stopped out with trailing stop)
$CCL -4% (met my loss target)
$GRUB -4.85% (met my loss target)
$ATHM +0.00% (trailing stop triggered)
$RHT +0.95% (met my time ... earnings target)
$ADBE +3.11% (met my time ... earnings target)
$CNC +4.89% (tailing stop triggered)
$KEM +16.22% (trailing stop triggered. Reaching climax top)
$CTRL +27% (trailing stop triggered beyond profit target)

Average loss for 4 positions was -3.40% (3 weeks)

Average profit for 6 positions was +8.70% (3 weeks)

You are bound to incur losses when you trade stocks. The way to outperform the market and to be profitable is to control your losses first and foremost. I just demonstrated with real live examples, how you can profit 2.56 times more than your average losses even when 4 out of 10 stock trades go against you. This is how you increase the size of your portfolio.

Market Conditions

Currently the market is still in a "Confirmed Uptrend" according to IBD (Investors Business Daily). We only have a total of 3 distribution days between the $SPY and $NASDAQ. Market however is consolidating for the past week. For the last 3 weeks of September 2017, the 3 major indexes performance as compared to my remaining 17 stock positions, is as indicated below:

$QQQ -1.15%
$SPY +0.65%
$DJI +1.65%
17 Stocks +5.13% (out performed the leading index $DJI by 311%)

Market usually plummets the last week of September. This would be a good time to adjust your trailing stops to mitigate losses and capture more profits if the market continues to move higher.

I have added 4 more positions to deploy some of the profits that were harvested from the above mentioned 6 stocks. I have indicated the date in parenthesis and the price of entry after the stock symbol.

$YY $74.50 (9/5)
$OLED $129.00 (9/6)
$PAYC $75.00 (9/18)
$BABA $178.40 (9/20)

Mentoring Program

Examine your portfolio and ask yourself:

Has your portfolio outperformed $SPY performance of +11.59% year to date?
Would you like to learn how to consistently Out Perform the market like I do?

Schedule a FREE 30 minutes of "Discovery Call" with us to see if you qualify.

Class size is limited and We only have a few spots left.