Allan Harris'  Instablog

Allan Harris
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After practicing law for way too long, I moved my family to the beach (Kiawah Island, South Carolina) to trade stocks for a living. After making and blowing a fortune in the technology bubble of the 1990's (and then again in 2006-08), I discovered the art and science of trend following. In... More
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  • Gulfport Energy Corp (GPOR) 0 comments
    Mar 29, 2013 7:18 PM | about stocks: GPOR

    I don't know a thing about this company, other than reading a positive mention of it in this Seeking Alpha article. As is often my want, when I read about a company I put up a chart and run my trend followling algorithm to determine if it is an uptrend or downtrend. That way I don't have to know much more than if it is going up or down. As for GPOR, I'll leave that observation to The Obvious, the very best trader I have ever met.

    (click to enlarge)

    As is shown above, The Obvious is Long after only a very short exit in February when price fell far enough to set off the fire alarm. By March 1st, the all clear was sounded and everyone was back on the bus.

    Note how well The Obvious played this stock in the first half of 2012, exiting in February @ $35 and climbing back on the horse in June under $20. What turned out to be a false alarm in 2013 was the real deal in 2012. At those two yellow flags, we didn't know which one, if either, would be a prelude a 50% haircut in stock price and a commensurate erosion of built-up profits. Better safe than sorry comes to mind.

    The Obvious: No matter how much you are in love with a stock, you cannot buy and hold and expect to make money, hang on to profits or sleep at night. To make money in the market you have to be on the right side of the trend, jump off the train when it derails and get back on when the whistle blows again.

    Disclaimer: Metaphors are for illustrative purposes only.

    Stocks: GPOR
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