Trade Alert: Stopped Out of Monster

On Friday, our Monster Beverage calls hit our stop-loss order.

That leaves us with a loss of 79%. If your orders were not triggered, go ahead and close the position at the market since we’re no longer following this trade.

While I never like taking losses, I know they are inevitable in any trading system — and by using a stop-loss, we were able to preserve some of our capital. Unfortunately, we didn’t see the rebound I expected Monster to exhibit after its stock split, so we’ll cut our losses and move on to future profit opportunities.

The goal with any system is to have fewer losses than wins. That’s exactly what this system has proven to deliver, leading us to a nice 64% win rate. In fact, just the one 300% gain on United Rentals in early November was almost enough to offset our five losses (out of our 14 full trades).

When you add in our profitable positions, we are easily and comfortably in the black. And I expect that type of profitable trend to continue into the next earnings season, which starts up later this month. Just remember to keep your position sizes to manageable, equitable levels.

With that said, we’re still in our quiet period and we have no current holdings, so we have a chance to relax for a bit. I’m going to use this chance to answer any lingering questions you may have about the service. Remember, you can always reach me at earningsdrift@sovereignsociety.com.

I’m also excited to say that I’m expanding the range of our system, which I’ll tell you about at the end of the week. For the moment, just know that this will give us more opportunities to profit with Earnings Drift Alert.

Until next time, good trading…

Jeff Opdyke
Editor, Earnings Drift Alert