Last Wednesday, we managed our two open positions by placing a 75% stop-loss on them.
This morning, one of those orders was hit, and we were stopped out of our calls in NetApp (Nasdaq: NTAP).
If your stop-loss order hasn’t been executed yet, go ahead and sell your position at the market since we’ll no longer be following it.
Unfortunately, despite this uptrend’s history of generating returns between 9% and 17%, the stock never moved up as much as we expected. (Right now the stock is at $36, while the strike is $37.) Although the stock jumped on earnings — which triggered our trade — it pulled back soon after and has traded sideways ever since. That’s why we instituted a stop-loss to preserve some capital.
I know it’s never fun taking a loss, but they are unavoidable in trading. The goal, however, is to find a strategy in which your gains come often and easily outpace your occasional losses — which is exactly what I’ve found in this service.
Since we opened this beta test to you all, we have experienced a 69% win rate. That means for roughly every 10 trades, we will experience about three losses. We also have an average gain per trade of 26.5% — which is an incredible return, particularly when compared to the sub-10% growth the overall market typically sees.
As I mentioned last week, we’re going through a slow period for new trades since we’re tied to earnings season. But as we get into the second half of January, abundant opportunities will present themselves, and we’ll be in all-out trading mode once again.
That’s all for this week. I hope you have a wonderful New Year’s, and I’ll talk to you next week.
Until next time, good trading…
Editor, Earnings Drift Alert