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Example of how a swing trader allocates funds
Example of how a swing trader allocates funds
Cory avatar
Written by Cory
Updated over a week ago

Here is an example of how a swing trader with $100,000 in their account would utilize the alerts. It will give you a breakdown of how the position sizes work, as well as the way to maximize profits and minimize losses.

X trader has $100,000 in their account and there is an alert sent out for:


Entry $100.00 (Approx 1% of Portfolio)(10 Shares)

Stop Confirmation Below $75.00

Target $150.00

(Keep in mind that the number of shares to be purchased will not be included in the alert as everyone has their own risk tolerance as well as account size)

What this means is:

Trader X will purchase 10 Shares of APPL for a total of $1000 and 1% of Their portfolio. You will then wait for the next alert on APPL which could be in 1 day or it could be 6 months or longer.

(Please read about the confirmation principal below for more information about the STOP Confirmation in this alert)

Now, let’s say that APPL drops to $90.00 dollars per share. Trader X will now be in this position:

.9% of their portfolio as the 10 shares are now worth $900 dollars instead of $1000, and their overall portfolio size went from $100,000 to $99,900. Although the stock has dropped 10%, we are in a good position to maneuver.

Next alert is sent out on APPL


Entry $90.00 (Approx .9% of Portfolio)(10 Shares)

Average $95.00 (Approx 1.8% of Portfolio)(20 Shares Total)

Stop Confirmation below $70.00

Target $150.00

You will have added another 10 shares of APPL for a total of 20 shares and an average price of $95.00 per share for a total of ($95.00 x 20) $1900 of their portfolio . You still have $98,100 left in their account to trade with. (You have now allocated approximately 1.8% of their total portfolio)

Next Alert sent out on APPL


Entry $81.00 (Approx 1.6%)(20 Shares)

Average $88.00 (Approx 3.2%)(40 Shares total)

Stop confirmation Below $65.

Target $140.00

When the stock goes from $100.00 per share down to $81.00 per share, their overall portfolio size has dropped from $100,000 down to $98,380 for a total of $1,620 of their portfolio invested. Once you have added the additional 20 shares for a total of 40 shares you will have $3520 invested (The original $1000 Plus the $900 from the second ad and lastly from the $1620 from the third ad).

Now, you get an alert for APPL


Entry: 01/10/2022 (Average $88.00)

Exit: 04/28/2022 ($98.56)

Profit: +12%

You will have exited the stock at or around $98.56 for a 12% profit. You will sell 40 shares of stocks at $98.56 which comes to $3942.40, and you have $3520 invested for a total profit of $422.40.

Your portfolio will grow by 0.00422% off of that one trade with minimal investment risk. Now, if we can get 10 of these trades per year (that is a slow year for us), you can see how over time this adds up to big gains.

As you can see, when we start SMALL with our position sizes, we have maneuverability while minimizing losses and maximizing gains.

Occasionally you will see an alert and the entry will be lower than the point where you can currently get the stock. Often this happens due to the fact that it has hit a key level, and that is when Gareth shoots out the alert. Don’t worry about getting the exact same price as the alert, we just recommend that it (the entry point) is within about half of a percent of the alert.

Now, there are some stocks that do drop even lower than the 19% of the initial entry point, and often you will need to hold a stock for a longer period of time - which can be over a year. No trade is a guarantee, so we recommend you get familiar with their own comfort level in the investment and their own account, because ultimately, you are responsible for their money.

(The Confirmation Principle is a very important aspect of the trading Methodology that Gareth utilizes. You can learn this principle in-depth within the educational webinars. With that said, here we will give you a general guideline to follow related to the alerts, BEFORE you have learned the Confirmation Principle: Stop “confirmation” is fluid just like the stocks themselves.

If a stock does happen to hit a Stop, the confirmation doesn’t trigger until it is confirmed, and that confirmation is based on the level that Gareth has identified. If you are unsure if a given position has “Confirmed” the stop, all you need to do is check the alerts. If you do not see anything posted, then that answers their question - nothing changed. With that said, while we suggest following the alerts as closely as you can, so that you can perform similar to Gareth, you can always exit their position when the stop hits, or at any time, if you prefer.)

Alerts are not investment advice nor are they recommendations for stocks to buy or sell. Alerts are just that, they alert you to a specific level at which Gareth has Identified as a possible changing point in the stock.

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