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Actionable news in TTWO: Take-Two Interactive Software, Inc.,

Looking Back: Post-Holiday 7/8/17, Winners & Losers, incl $HPP $SU $COP $TTWO $SQ $AAOI $XLF $XBI $TAN

This was a holiday shortened week but Mr. Market never stops racing forward, shifting lanes constantly while always fidgeting with his pockets. Money shoved in and money falls out of these pockets and we’re left with fortunes or barely any loose change. Let’s review this week’s stopped out ideas, this week’s “losers” and review their charts.

Ticker Entry D Entry Px 7/7/17 chg % rtn
HPP 1/20/2017 35.81 32.68 -3.13 -8.74%
SU 12/9/2016 32.62 28.45 -4.17 -12.78%
COP 12/9/2016 50.77 43 -7.77 -15.30%
DBD 2/17/2017 30.1 21 -9.1 -30.23%

I know that some of these stopped out ideas numbers look pretty brutal but it’s not unusual and it’s generally manageable for my approach. Why is that? I will explain.

First of all, please understand that weekly price charts are used on Rooster360. A week in the life of a trade can include some large changes in price.

Second, there is little to no deliberate “day trading” taking place at Rooster360. The stop loss exit prices used are often “wider” than those typically used by day traders or even “IBD” style speculators. When an idea is stopped out from Rooster360’s master ideas universe, it may have involved a price change that seems large to most speculators.

Third, prices for Rooster360’s updates are updated about every weekend, and the closing price for the week is used. The stop loss prices I calculate and share may be “triggered” before the end of a particular week but the closing price of the week is still used to keep reporting consistent and easy to update. The price of an idea may have kept dropping (for a long) or rising (for a short-sell) past the suggested stop loss price.

Last and perhaps the most important aspect about both stop losses and taking losses at Rooster360. As bad as a long idea’s decline or sell/short idea’s rise, my trading size per idea is controlled by my risk management practices. I personally trade most ideas with a risk per idea ranging from 0.25 to 2 percent of trading capital. To help explain further: let’s say the account is $1m USD being used for speculation. That amounts to $2500 to $20,000 USD at risk for an initial trade. Before any trade is taken, there should be a plan for how much can be lost for a trade. Many traders talk about price targets but my focus is stop loss price targets. The winners will take care of themselves nicely.

(In Rooster360’s premium model portfolios and master ideas universe, I use $500 as the amount to risk per idea and then offer estimated trade size amounts since many readers can relate to $500 per idea at risk and the math is easy.)

Take a quick look at the detailed STOP LOSS notes, shared below, and you will see suggested trade sizes and stop loss prices for each idea. Notice how each column in this STOPPED OUT IDEAS chart has a label. One column, “OPEN RISK AMOUNT”, refers to the estimated maximum risk suggested for an...