Our plays will be listed either as a bullish (long) play or bearish (short) play.
Each day we update the play (Tues/Thurs/Sunday) we will list the date and the current price.
Here is an example of the status line of a play:
NEW -LONG- PLAY!! 9/8/99 $210.00 TARGET=250.00 STOP=187.00 RISK=4.0
NEW -SHORT- PLAY!! 9/18/99 $20.00 TARGET=16.00 STOP=22.50 RISK=3.0
LONG - UPDATE!! 9/16/99 $229.38 TARGET=250.00 STOP=202.00 RISK=4.5
CLOSED LONG PLAY!! 10/08/99 $118.88 STOPPED=120.00
What Does It All Mean?
Target is the price at which we will re-evaluate the play and either close it or place a higher target. If a stock reaches its target price, that does not automatically mean we sell the security.
Stop is a SUGGESTED stop loss. The stop will usually be set at a point where we feel our play has lost its advantage. This does not mean the play is immediately over. Yes, we were stopped out, but we may re-evaulate for a new position. We strive very hard to pick a stop close enough to protect our capital - yet wide enough to give these stocks room to maneuver. However, we realize two very important realities. 1) Every investor is different and trades within their own level of risk. You should make every effort to set your own stop loss according to your level of risk. 2) We are trading in a very volatile sector and stops may or may not work. It is not uncommon for a stock to hit a stop during intraday trading only to rally before the close. It is part of the game Internet investors play.
Risk is a number between 1 and 5 that we will assign based on our opinion of the risk.
Five being extremely risky. One being the most conservative (and probably very rare in this sector). Shorter-term volatile plays will be the most risky and we will mention in our write up how we view the play. Most plays will range from 3.0 to 4.0.
Every other day, or as needed, we will update the play giving the recent news and how we view the play is working and what things might influence the play in the next few days.
Usually at the end of an update we'll show the price we picked it at and the change since we picked it.
Picked on Sep 8 at $210.00
Change since picked +30.63
A play may be closed for several reasons.
1) We hit our target and we feel it is not advantegous to pursue the stock any farther.
2) We hit our stop. The play has lost its edge and it is time for us to look for newer opportunties.
3) The play is just not moving fast enough for us, or there are factors developing outside the scope of the play that may have negative consequences for that stock.
If we close the play for reason #1, the tally may look like this:
our target was $101, however the stock climbed to $106.50 before
we closed the play. The "Profit/Loss" statement shows the move
at our target price. The "Best profit" shows the high for the play.
Picked on Oct 3rd at $ 89.25
Closed on Oct 10th at $ 99.00
Profit/loss = +11.75 or 13.16%
Best profit = +17.25 or 19.30%
If we close the play for reason #2, the tally may look like this:
Picked on Oct 5th at $120.25
Closed on Oct 8th at $116.75
Profit/loss = -3.50 or 2.91%
Best profit = +6.88 or 5.72%
our target was not reached and instead we were stopped out of the play for a small loss. However, the direction we picked was correct and the stock did move forward as evidenced in the "Best profit" for the play.
If you have any questions, feel free to email us at firstname.lastname@example.org