Executing Plays for Newbies

[chinesedrum]

One question on executing suggested plays. Take the Nov 13, 2020 Market Update Report for example. I just subscribed on 13 Nov 2020 itself and it's my first time with TI. Does this imply that I should be looking to execute plays which read like they are suggested for the first lot? For instance, "Huntsman: Deploy one lot in the 21.00 to 22.00 ranges."

If that's the case, does it mean I should not be executing plays which are suggested for second and third lots? For instance, "Premier: Deploy the 2nd lot in the 27 to 29.00 ranges".

I appreciate your clarification, thanks.

[Eric]

You should have received several back-issues as part of your welcome materials. Find the PDF titled "Market Update Portfolios Oct 31, 2020" and look for the table of positions to identify any currently owned positions that are candidates for you to open a position in. Sol advises not paying more than 5% over to establish a position if you missed out on it the first time around. Here are two lines from the Portfolio update table that looks like candidates to me:



I just looked at my phone and see HTLD closed at $18.94 on Friday and the first third of a position was taken at $18.90 so I would say you could (if you choose to) take a third of a position in HTLD as long as nothing major happens between now and open tomorrow.

I see ULH spiked up over $22 so ignore it for now and look for other deals--105% of the first third would be $21.41 and 105% of the total position entry price is $17.70--either way you can't make a case to buy at $22+.

AIN closed at $63.97 Friday, well below the first-third price of $68 and well above the current position price of $58. I think a case can be made to buy one third of a position in AIN below the first third price.

You also have to factor in how much cash you have in your portfolio: If you have 15% cash or less you probably only want to invest in one or two of the most attractive looking plays, of your portfolio is 80% cash you can more easily justify taking still attractive but not perfect plays.

[Alykin]

One thing about HTLD, it's a stock that has been sideways for so long that SOL recommends closing it out to redeploy funds showing more promise. This is why the stop is so close to they buy price while it isn't up 30% (the normal time to up the stop to initial entry price)

First called out in 10/19 update:
Heartland Express, Inc. (HTLD) Updated
We had this position for a long time, and our portfolio is quite full, so we are going to start getting rid of some of the laggards.
Close this position out in the 19.61 to 20.55 ranges. Raise the stop to 18.00

re-iterated on 10/31 update:
Heartland Express, Inc. (HTLD)
Close this position out in the 19.61 to 20.55 ranges. Raise the stop to 18.00

[Eric]

Thanks Alykin, I missed out on HTLD initially and never got into it later so haven't paid attention.

Personally, I had a busy day taking profits on DIA, BAC, BSX long calls; setting really tight trailing stop orders on 30%-65% profitable short-term positions, and reducing or closing some trades that have been mostly dead-money (but at least they were finally back in the black). Of my three portfolios the one I use for MU (and other) plays is up over 10% in less than 6 weeks so I decided to both lock in gains and free up capital for a forthcoming buying opportunity.

[Alykin]

I'm with you on banking profits and getting funds ready for the turbulence ahead. Sold a few positions today as well, which brings me to +26% in realized gains over my starting portfolio size in 15 weeks ago when I first subbed. Can't forget to cash some out to pay taxes on these gains, but that is a good problem to have.

[George1010]

I did the same took a bunch of profit and since Jan my portfolio is up about 55%, options helped juice the returns and I bought a lot during the March sell off. My pure options portfolio (smaller in size and extremely aggressive) is up over 300%

It's a refreshing change to bank such gains. Who knows I might even recover the money i pissed away years go on fake gurus, experts, subscriptions, etc

[Investor87]

Personally, I had a busy day taking profits on DIA, BAC, BSX long calls; setting really tight trailing stop orders on 30%-65% profitable short-term positions,

Yesterday XENT was trading well within the recommended sell rang (25.20-27.00) so I added a trailing stop at 3%. It was set to sell no lower than 25.88. I woke up this morning to find that it had executed at 23.23. I looked at charts from yesterday and this morning and nothing shows it dropping below 25.5. I still made 41% on the 1/2 which I am happy about but am am curious what happened. Have any of you had better luck with trailing stops? Any rules of thumb to know to increase profit with these?

[Eric]

Did you set a trailing stop limit or trailing stop loss? Fidelity is the only one I know of that allows you to set trailing stop LIMIT orders. It sounds like your trailing stop was executed as a stop-loss market order instead of a limit order.

[Investor87]

Did you set a trailing stop limit or trailing stop loss? Fidelity is the only one I know of that allows you to set trailing stop LIMIT orders. It sounds like your trailing stop was executed as a stop-loss market order instead of a limit order.

Good question. I took some snapshots of an example of what I did using VTI. One placing the order, my choices from the dropdown and another of the pending order.

What do you think?

[Eric]

Looks like a "market order" stop. Personally I think it's borderline malpractice/corrupt shenanigans that brokers even allow market order "stop losses".