Our portfolio is on the move again.
We had two positions closed out yesterday due to our standing stop orders: NVIDIA hit our protective stop to close the second half for a 50% gain, and Activision Blizzard hit our stop-loss to preserve capital.
With NVIDIA, we closed out the first half two weeks ago, locking in a 50% gain. Since then, we have followed our strategy of increasing the protective stop on the second half from 10% to 50%. Our stop was hit yesterday before the closing bell.
In addition, our stop-loss order to limit our loss to 75% in Activision Blizzard was hit late yesterday, triggering our orders.
If your orders in these positions were not filled for any reason, go ahead and exit the positions since we will no longer be following them in the portfolio.
It’s never fun taking a loss, but they’re inevitable when dealing with the markets: No trading strategy can win 100% of the time.
Just keep in mind we’ve had an excellent string of profitable trades, including today’s NVIDIA gain. When we count complete trades, we’ve had eight profitable recommendations and just two losses. That’s a solid 80% win rate, which is excellent for any trading service — especially one locking in gains north of 50% on a regular basis.
So while we may take an occasional loss, our track record shows that there will be more than enough profitable opportunities to make up for them.
As always, I’d greatly appreciate your feedback so I can continue to improve the service. Please let me know how the process went for these trades by emailing me at email@example.com.
Until next time, good trading…
Editor, Earnings Drift Alert