Hello, valued customer! I want to emphasize the importance of following the rules in order to succeed in your trading journey. At InTheMoneyStocks, our team of professionals have developed a proprietary methodology based on trading principles that have proven to be effective. To fully grasp these principles, we encourage you to attend our Advanced Education webinars.
However, even if you haven't had the chance to attend the webinars, you can still achieve success by following our trade alerts. It's crucial to understand and adhere to the rules we provide. On each trade alert, our professionals include key details that are essential for your success. One important aspect is position sizing, which refers to the recommended percentage of your portfolio to allocate to each trade. This helps limit potential losses and maximize profits.
It's worth noting that our professionals have a win rate of at least 80% on their trades, as reflected in our trade alert performance. So, if you experience losses despite this high win rate, it's likely because you haven't followed the rules properly. Our team provides all the tools and information you need to make money, so it's important to utilize them wisely.
Keep in mind that successful trading is a long-term endeavor, not an overnight phenomenon. Our professionals have accumulated wealth over decades by following a strategy that builds wealth gradually. We highly encourage you to do the same. Take advantage of the knowledge and expertise provided by our professionals and make the most out of your trading journey.
MORE TRADE ALERT DETAILS:
The average price noted on Verified Investing Alerts trade alerts is the average entry price of the total position.
TRADE ALERT EXAMPLE:
What this means is that if you see a trade alert that looks like this...
Buy AAPL --- (indicates the stock to buy)
Entry: $90.00 (Approx 1% of Portfolio) --- (This is the entry price being taken when the alert is posted. And is 1% of your portfolio)
Average: $100.00 (Approx 2% of Portfolio) --- (This is the average position price and %. Which means he was already in the trade and added to it at the entry of $100. The 2% is the total position size relative to your portfolio)
Stop: Confirmation Below $75.00 --- (This is where you would exit for a loss if confirmed based on the Confirmation Principle. Learn the Confirmation Principle here)
Target: $125.00 --- (This is where you would exit for profit)
(For a more elaborate explanation of how to us the Alerts Service Click Here)
A full position can be accumulated slowly, so always follow the position sizing rules, even if they seem small. This is how smart Pro Traders manage money and mitigate risk.
Portfolio Position Sizing:
Gareth operates the portfolio in a fluid manner. So as he adds to positions while the price of that stock drops, the position sizing adjusts accordingly to reflect the current % in the portfolio. Meaning that if a position was 10% 6 months ago, that same position may be only 8% now even if it is at the same price due to the portfolio growing. The same goes for adding to a position as the price drops; the position sizing will adjust accordingly for the decrease in share price relative to the account size, either higher or lower.
Also take note, most traders utilize margin when needed. Also, most brokers require a margin account to allow you to short a stock. Therefore, considering margin, you can assume the overall holdings within the portfolio can reach 200%.
Take away: When looking at the open positions, if you ever think the portfolio holdings exceed 100% and you are confused by that, please note the factors detailed above as the information in the alerts is accurate.