This was a bitter sweet week as some individual launches made an amazing move and we were able to lock solid profits namely on $NLNK and $FATE. The disappointing part was that several stocks that were on the looser side eventually recovered and blasted through the launch and profit targets without looking back. These were $CORT, $SUPN $ICTI and $PACB. $CVRR on the other hand provided another opportunity on Friday when it crossed the launch price of $8.75 once more and maybe poised to reach the profit target this time.
The biggest disappointment is $RH. Although this was a profitable launch, the safe exit at $50.62 was well under the full potential that could have been realized when the stock blasted through the following day and hit a high of $73.25. That would have been a $23 move. With 2500 shares, that is a lost opportunity of $56K !!! We still were able to pull a profit of $4.5K.
Despite these disappointments, we still managed to pull an overall profitable week with an average profit per trade of 5.1% and an accuracy of 53%.
So, the question is what have we learned from this week’s disappointments to optimize the performance of our system. Well it comes down to risk management. Had our abort targets been less tight, we could have survived a few loosing exits and recovered to turn into a profit. We think a review of the math should help us test that theory. If the theory holds, then it might be worthwhile to widen the abort prices in future launch lists.
For this week profit was launched on: $NLNK $FATE $RDNT $RH $TGT $SB $ERI $ENTG $NNN $GPI loss on $SC $CORT $SUPN $ITCI $EROS $CRR $NAO.