The Gorilla’s Top 10 Stock Trading Tips to Help With Your Investing:
Invest no more than 5-10% of your capital in any one stock pick
Allow 3 to 4 months to build a current portfolio of about 20-30 strong GorillaPicks
Always carry an exit strategy with each trade
Diversify your capital with first target profits
Each trade entry is designed to have a two to three times greater potential gain (12-24%) than potential loss (6-8%)
Waiting for a stock to have a Confirmation Day will drastically reduce trade risk and preserve capital
Pursuing second targets will create a strong portfolio of winning stocks, with only 25% of your original capital
Never chase a New GorillaPick that “gaps up” more than 5% at the open
Stocks do not go up forever; pay the price that coincides with your exit strategy
Do not over-commit capital too soon; dollar cost averaging “up,” creates the most stable cost basis
The mechanics of the Gorilla system work best for subscribers who follow the recommended stock trading tips below and trade within their own personal risk parameters:
When using any type of stop, stop limit, buy limit, or buy stop order, make sure these orders are staggered in price when trading large share amounts. Subscribers should also be aware that the stop loss and target figures recommended should always be viewed as areas, as providing exact figures can, and will, dictate market movement.
When investing new capital, invest no more than 5-10% of your capital in any ONE GorillaPick.
When investing new capital, always consider waiting for the “Confirmation Day.” Do not confuse this term with the “Trigger Day.” The trigger price alerts subscribers to take notice of a particular stock’s strength. (This confirmation system was designed after the Gorilla observed numerous studies using volume and how it coincides with the success of YOUR entry points.)
When reviewing Monday’s newsletter, always update your stop loss levels. These levels are often raised to protect unrealized gains within the portfolio, especially during uncertain market environments.
When considering new trades, refer to the Menu of Stock Ideas. Stocks are sometimes held in the GorillaTrades portfolio for as long as six months! The stocks that are in the portfolio the longest are usually the strongest. Instead of always fishing for a new winner, purchase or add to your position in a strong existing GorillaPick on a pullback. During market corrections, GorillaPicks that have proven leadership usually continue to advance, as the market reverses direction.
When buying or selling stocks, the Gorilla does not recommend using margin. (However, trading GorillaShorts does require a margin account.)
When deciding to invest new capital, try not to initiate orders until at least 10:15 AM, as this allows the market to sort out any overnight trades. This time period will also eliminate buying or selling on any large opening gap prices. An opening upward gap in the price of any stock is usually “back- filled” during poor market environments. Furthermore, entering orders pre- market or after-market may result in irrational price fills.
When having trouble with any term or definition, please refer to the Gorilla Dictionary, the FAQ section, or if ALL else fails, please send the Gorilla your question.
When investing new capital, always have a plan for entry, a plan to exit on the way up, or down, and an idea about the current market environment.
NEVER let your emotions become involved in ANY trading decisions!
Thanks for reading our Stock Trading Tips!