ChartMasterPro: Quarterly Review Of Our Stock Picks

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Includes: ABBV, AGN, AIG, AKAM, AMGN, CMG, FL, HOG, QSR, VZ
by: ChartMasterPro

Summary

A 76% winning trade percentage from January 2017 to March 2017.

Leveraged options reduce the amount of time you need to be in the market to turn a profit on a trade.

In trading, you're not going to be right 100% of the time, but if you can make money every month, you're on the right path.

Winston Churchill once said:

However beautiful the strategy, you should occasionally look at the results.

We humbly agree with him. As investors, we all fall in love with a particular way of analyzing the markets and deciding which stocks to invest in and which to avoid. We may believe that the specific process we use is effective and will make us money. But to confirm the viability of the strategy, and to prove to ourselves that we are in fact traveling down a profitable path, we have to sometimes pause and take a look at the results.

At ChartMasterPro, we combine both fundamental and technical analysis in our investment and trading process. If what we see on the charts reflects what we can extract from the fundamentals, we decide to jump into a trade. We trade leverage options because they reduce the amount of time we have to be in the markets to turn a profit on a trade - most of the time this works to our benefit, but sometimes it hurts our returns.

Since we launched our service in January 2017, we have closed 54 trades. Of those 54 trades, we have made money on 41 trades, and lost money on 13 trades, for an overall 76% winning trade percentage. Not too shabby.

We also believe that a picture is worth a thousand words. So below is a review of 10 of our past stock picks from the first quarter of 2017 (8 winners and 2 losers), with the corresponding charts that were included in the Seeking Alpha articles in which we made the recommendations.

WINNERS

AbbVie Inc. (NYSE:ABBV)

On February 15, 2017, we recommended going LONG ABBV in our article, Abbvie: Strong Dividend, Strong Buy. In the article, we had forecast an upward target price of $64.00 over three months. The shares hit $64.00 three weeks after our recommendation. We booked a gain of 45.61% on our ABBV call options.

Allergan plc (NYSE:AGN)

On February 2, 2017, we recommended going LONG AGN in our article, Allergan: Ready to Move Higher. In the article, we had forecast an upward target price of $245 over three months. The shares hit $245 two weeks after our recommendation. We booked a gain of 88.12% on our AGN call options.

American International Group (NYSE:AIG)

On January 24, 2017, we recommended selling or going SHORT AIG in our article, AIG: Misplaced Optimism. In the article, we had forecast that the shares would fall to $57.00 over the next twelve months. Three months after our article, the shares are now trading at $59.50 from $64.50 at the time of writing. We booked a gain of 26.67% on our AIG put options.

Amgen Inc. (NASDAQ:AMGN)

On January 27, 2017, we recommended going LONG AMGN in our article, Amgen: A Compelling Buy. In the article, we had forecast an upward target price of $170.00 within six months. The shares hit $170.00 one month after our recommendation. We booked a gain of 54.55% on our AMGN call options.

Akamai Technologies (NASDAQ:AKAM)

On February 9, 2017, we recommended selling or going SHORT AKAM in our article, Avoid Akamai. In the article, we had forecast that the shares would fall to $59.00 over three months. Two months after our article, the shares are now trading at $58.80. We booked a loss of 11.11% on our AKAM put options. (When trading options you lose money even when you're right! In this case, we got stopped out of our trade before the decline in the share price.)

Foot Locker Inc. (NYSE:FL)

On February 3, 2017, we recommended going LONG FL in our article, Foot Locker: Golden Buy. In the article, we had forecast an upward target price of $79.00 within six months. The shares hit $77.00 within one month of our recommendation. We booked a gain of 101.95% on our FL call options (when trading leveraged options sometimes close enough is good enough when it comes to target prices!)

Restaurant Brands International (NYSE:QSR)

On February 8, 2017, we recommended going LONG QSR in our article, Restaurant Brands Int: Whopper Dividend Growth. In the article, we had forecast an upward target price of $53.00 within three months. The shares hit $57.00 with two weeks of our recommendation. We booked a gain of 84.00% on our QSR call options.

Harley Davidson Inc. (NYSE:HOG)

On February 23, 2017, we recommended going LONG HOG in our article, Harley Davidson: Riding Higher. In the article, we had forecast an upward target price $62.00 over three months. The shares hit $62.00 two weeks after our recommendation. We booked a gain of 59.44% on our HOG call options.

LOSERS

Chipotle Mexican Grill (NYSE:CMG)

On February 6, 2017, we recommended selling or going SHORT CMG in our article, Chipotle: Forget the Guac, Get Out. In the article, we had forecast the shares falling to $355 over three months. Two months after our article, the shares are now trading at $463.62 (we got stopped out of the trade on March 8). We booked a loss of 36.84% on our CMG put options.

Verizon Communications (NYSE:VZ)

On February 19, 2017, we recommended going LONG VZ in our article, Verizon: Dividend King. In the article, we had forecast an upward target price of $52.50 over three months. Two months after our recommendation, the stock sits at $48.62. But it did manage to go to $50.00 in late February at which point we booked a gain of 47.89% on our VZ call options (when trading leveraged options you don't always have to be right to make money).

Conclusion

In this business, you're never going to be right 100% of the time. And even when you are right you may a) not stay in the trade long enough to maximize your gains, or b) lose money on the trade by getting stopped-out before the trade can move in your direction. And then sometimes when you're wrong you may make money if the trade moves in your direction for only a few days.

But as the Spanish say: It is not the same to talk of bulls as to be in the bullring! When you're in the trade you're in the bullring with the bull six feet in front of you, snorting and kicking dirt; once you're out of a trade, you can calmly talk about the bull while sipping some wine in the safety of your home.

At the end of the day, if you can make money every month, I would say that you're on the right path, and that you should continue down that path.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: We trade options. Sometimes our trades last a few days, sometimes a few weeks, sometimes a few months.
Please review our trade history listed in our BlogPosts to get a feel for our trading style.