Now that we've closed our first official year I wanted to take the time to review the year in full and go through some of the trades that helped us net 77% returns in 12 months and those trades that prevented us from achieving even higher. To start, all of our closed trades have been posted in the google doc in the following link. These do not include the open trades mentioned in the open alerts section of the site.
As you go through the list of all of our alerts you can see certain trends and rules we follow that result in great returns: consistent capital allocation to each trade and never over allocating too much capital to any one trade. The key is to never be too exposed to any one position. The market can move quickly and when you're not over allocated you can immediately make sure you're keeping your losses small in comparison to your entire account.
Going through the list of trades for the year we had 7 large losses on a dollar basis for us: LIVE, BSPM, EVC, IFON, HPJ, APT and RGLS.
Of those - BSPM, EVC, IFON and HPJ all broke the two rules mentioned above - they were over allocated too much capital and were over the max 10% threshold of the total portfolio that should be in any one trade. When these moved against us it was too late to control our downside even when we followed our stops.
The others - LIVE, APT and RGLS - were all short alerts that broke the third major rule of trading. PATIENCE. In each of these 3 positions to the short side, we exited too soon and covered before the trend and technical analysis indicators we spotted in the first place had enough time to play out. Each one of these dropped significantly after we closed. We alerted new shorts in APT and RGLS (still open) after closing which saw great returns further backing our initial thesis that the short play was right. In shorting especially, patience is very important. Markets get frantic quickly and when stocks see +100% returns in days, and have the technical analysis to support a correction, it's important to stick to your gut as drops in price are most likely coming.
Even with these major losses, we still ended the year up 77%! We had blow out winners like IPCI, OCLS, CYTR, PNTR, GALE, CCIH, KONE, TQNT, OXGN, STV, KNDI, IG and APT to only name a handful.
We're glad we have all of our members on board and can't wait to find new winners for everyone going ahead.
K Capital - kcapitaladvisors.com