Below is a chart that displays
this weeks Level 5 picks.
Level( 5 ) Example with
Exit Criteria
The below GLBL chart displays a previous Level(5) pick. It is interesting to note that if the Elder Impulse System is used to exit, there never was a SELL signal issued (ie) No Red. Today's GLBL gain was + 16%
for a definition of the Elder Impulse system see:
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Some excellent questions were asked.
This deals with money management
and there are volumes written about it.
There are many different flavors. Some
like to take money off the table and
leave the rest ride until you get
stopped out. Speaking for myself, I
always use many small different stock
positions and just close them out when
things get ugly. Buying small is my main
tool for mitigating the always present
stock risk.
Do you have a downside limit before
getting out?
The Level Five picks should move Up, if
they don’t something is wrong and I
would exit as soon as the price dips say
1 or 2 percent below the low point
before the move Up.
Timeframe?
I really don’t have one. Conceptually
the Level Five picks are short term
plays, yet I have experienced a 45%
straight up gain.
About "when things get ugly"
Upfront all my trades
are done in a IRA so the tax
consequences are deferred.
Consequently I trade quite
frequently. I am strongly of the
opinion that the way to mitigate
stock risk is to have many small
stock positions. I don't care how
beautiful or strong a given trend
may be, it can drop 20 or more
percent in a heart beat.
We really don't have a stock market
any more, it is now an electronic
casino with everyone at war with
each other. I think you have to be a
little "Nuts" to be even in this
game. I have some rough rules I
follow to exit. One is if a stock
drop wipes out the past 10 days of
gains, I'm out. Also if a stock take
a big hit during the day say 15% or
more I will exit or hedge with short
funds.
Any of the Level 5 computer picks
can suddenly be crushed by a big general
market meltdown or decline. This is the
everyday stock risk you take on whenever
you purchase a stock.
As part of my own due diligence, I
always check out a stocks profile before
purchasing it. I also, will not buy any
stock that the profile shows has
litigation or stockholder problems.
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Schippi@SelectSectors.com
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