What is the Launch List ?:
The launch list is a collection of stocks that have met our proprietary technical conditions on the nightly TradeIdeas stock scanners that we use. The list is our template for profit making and serves as the Launch Plan for each stock that becomes a launch candidate on the list. The Launch List is a table with each row representing the Launch Plan for a specific stock. Each column in the table includes a specific element of the Launch Plan. The sections below go over the specific columns in the Launch List table. Profit Mission Control publishes a a Launch List on this site, on StockTwits, Twitter and Facebook three to five times a week.
A ticker symbol or stock symbol is an abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. A stock symbol may consist of letters, numbers or a combination of both. In this example, Dean Foods is the company name and DF is the stock symbol which is displayed on the Launch List to identify that the stock of that particular company is a candidate for Launch.
Launch At Price:
The Launch At price is the trigger price at which we enter the launch. It is important not to enter the launch until this price is realized. That level indicates a breakout price from a prior intraday or daily resistance. Entering early before this price is realized minimizes the probability of success. If breakout trading is not your style, another approach to minimize the risk is to wait until the launch price is triggered and the stock makes a small move up and then pulls back to a prior intraday support to enter. An entry on a pullback below the Launch At price is valid but only and only if the Launch At price was triggered. The pullback also needs to be above the Abort At price otherwise this may indicate a failure of the launch.
Profit At Price:
Next is the Profit At Price. This target price is based on recent buying and selling price levels. This doesn’t mean you have to wait until that price is reached to take profits. That is purely a personal choice based on your risk tolerance holding time tolerance and profit desires and position size. Depending on how volatile the price is, we may take our profits immediately even if it doesn’t reach that target. Typically we will wait for five minutes after the Launch Entry and start monitoring the price action on the intraday chart. If the price remains above the Launch At price, and the chart looks healthy we will wait until the Profit At price is achieved before taking profits. In the majority of the cases, we hold beyond the planned Profit At price if the momentum is strong and the uptrend is not broken or reversed.
Abort At Price:
Not every Launch will go our way, and this Abort At price is the price at which the loss must be stopped. It is commonly known as the Stop Loss Price. If you have been trading for a while, or you are a new trader, you will know that mastering Risk Management is the number ONE key to extracting profit from the stock market. Do not talk yourself into staying below the Abort Price. Every penny in the red you wait for just gets you closer to danger. The importance of respecting the Abort At price cannot be over emphasized . If you get out, you can wait to see if the stock gets back to its Launch At level and reenter. Don’t listen to your self-talk, don’t try to justify the loss, JUST ABORT.
Target Profit $/Share:
The Target Profit Per share is simply how much cents or dollars above the Launch Price, the expected Launch will reach before taking profit. It can be calculated simply by subtracting the Profit At price from the Launch At price. In most cases, this target is established based upon a prior intraday or daily resistance as identified on the chart. As the stock launches and the price action is up trending, it is expected that the target profit per share will be realized generally within the same trading session or a few days later as long as the stock does not hit it's Abort Price. If the upward momentum of the stock price is strong, taking profit can be delayed to maximize the profit. If the stock's upward momentum stalls or starts to show weakness, profit should be taken at any price above the Launch At Price.
Maximum Loss $/Share:
The Maximum Loss Per Share is simply how much cents or dollars below the Launch Price, the Launch will be allowed to drop before Stopping out and aborting the Launch. It can be calculated simply by subtracting the Abort At price from the Launch At price. In most cases, this Maximum Loss target is established based upon a prior intraday or daily support as identified on the chart. Sometimes, this price level is chosen to ensure an acceptable Profit/Risk Ratio.
The Profit To Loss Ratio (P/L):
The Profit To Loss Ratio is the Target Profit Per Share divided by the Maximum Loss Per Share. This ratio represents the core of Risk Management. It tells us if the Launch we are entering has more reward than risk. A ratio of 100% means that we expect to make as much profit as we may loose. This certainly is not attractive because our Profit Taking Accuracy (Win Rate %) has to be more than 50% all the time to make consistent profits, and even more if you account for commissions. To ensure consistent success, we target Launch setups that provide a Profit To Loss Ratio above 100% and preferably above 150%.
The last column is the calculated number of shares that we will be taking for that particular Launch. The number of shares is calculated using our developed Share Size and Growth Calculator. The proper number of shares depends on the Maximum Allowed Account Risk, the actual Launch Maximum Loss Per Share and the round trip commission. Please review our video on proper shares sizing for more information.