Philstockworld Merry May Trade Review – Part 3

June 14, 2014 at 08:28 AM EDT

What a month May was! So far, in the first two weeks (through the 9th) , we had 94 Trade Ideas for our Members and all but 11 (88%) were winners (see Part 1 and Part 2 ) . Of course we use hedges, where we purposely bet the opposite direction in order to protect ourselves so it's not possible to be 100% and even 88% is strange – usually we're aiming for around 66% . The trick isn't to be right ALL the time, but to control your losses so they don't counteract the gains. Usually, we go for trades that have a good chance of paying 200% or more within 18 months so we EXPECT to make 10% a month or more. When those work, we get huge wins – if we then keep our losses to 20% (of our allocation) or less – the statistics take care of themselves as +20%, -20%, +60%, -20%, 0% on 5 trades (for example) gives you 5 allocations that made an average of 8%. When one of those allocations goes up 100%, you don't even need to get half of them right to have a winner – but ONLY if you control your losses AND maintain consistent allocations. That's what we practice in our Long-Term Potfolios – PORTION CONTROL! By scaling into positions (something else we practice with our Members in our Long-Term Portfolios), even if we lose 100% of our initial position – it's generally only about 20% of an allocation. Since we can't lose more than 20% of an allocation and we usually try to make 200% or more on the cash we lay out for our long-term trades (which nets 40% or more for a winning allocation) – again, math does its work over time. That being said, let's have a look at how week 3 went in May : May 12: Just Another Manic Monday While investors may not have learned anything from the last crash, the Banksters have learned that you can manipulate just a few key, …

What a month May was!

So far, in the first two weeks (through the 9th), we had 94 Trade Ideas for our Members and all but 11 (88%) were winners (see Part 1 and Part 2). Of course we use hedges, where we purposely bet the opposite direction in order to protect ourselves so it's not possible to be 100% and even 88% is strange – usually we're aiming for around 66%.

The trick isn't to be right ALL the time, but to control your losses so they don't counteract the gains. Usually, we go for trades that have a good chance of paying 200% or more within 18 months so we EXPECT to make 10% a month or more. When those work, we get huge wins – if we then keep our losses to 20% (of our allocation) or less – the statistics take care of themselves as +20%, -20%, +60%, -20%, 0% on 5 trades (for example) gives you 5 allocations that made an average of 8%.

When one of those allocations goes up 100%, you don't even need to get half of them right to have a winner – but ONLY if you control your losses AND maintain consistent allocations. That's what we practice in our Long-Term Potfolios – PORTION CONTROL!

By scaling into positions (something else we practice with our Members in our Long-Term Portfolios), even if we lose 100% of our initial position – it's generally only about 20% of an allocation. Since we can't lose more than 20% of an allocation and we usually try to make 200% or more on the cash we lay out for our long-term trades (which nets 40% or more for a winning allocation) – again, math does its work over time.

That being said, let's have a look at how week 3 went in May:

May 12: Just Another Manic Monday

While investors may not have learned anything from the last crash, the Banksters have learned that you can manipulate just a few key,

…