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

Heat Wave: Winners & Losers Update 7/21/17 incl $AAOI $TTWO $SQ $PTLA $CTRL

Mr. Market is getting a serious workout this summer. The casino keeps making new highs and the breadth indicates it’s not just trendy “FANG/FAAMGs” (the current fashionable version of the “Nifty Fifty”) that’s doing the heavy lifting. I think it’s fair to say animal spirits have grown a bit wilder across the board. Let’s drill down through the Master Ideas Universe and look at the losers first and then the Rooster360 Top 20 leaderboard as of this week. $AAOI $TTWO $SQ $PTLA $CTRL are the Top 5 as of this week and they have racked an average of 115+%. We’ll get to the details in a moment but first let’s look at the losing ideas first.

The losers chart as of this week, made up of the ideas which trigger suggested stop loss prices (primarily to push some readers to think more about risk management) include a Top 20 idea with a notional gain of 69%, CSX.

Everything else stopped out did so with relatively small percentage losses but they could have been large double digit losses and not been a problem. I will explain. This is not because I am a masochist but my system focuses on trading size. The Master Ideas List generated each week calculates for subscribers suggested trading sizes and initial stop loss prices, calculated to risk losing about $500 USD for each idea. The result is that some ideas had more shares being traded than others, based upon the risk per share as calculated by Rooster360. More experienced traders already understand and practice some form of risk management.

Ticker Entry D Entry Px 7/21/17 chg % rtn trade NOTES NOTES 2
CSX 9/30/2016 30.5 51.68 21.18 69.44% LONG STOPPED 07/21/17 TRAILING 6 WEEK STOP
NTRS 6/30/2017 97.21 87.84 -9.37 -9.64% LONG STOPPED 07/21/17 NEW IDEA 6/30/17
YPF 3/31/2017 24.28 19.99 -4.29 -17.67% LONG STOPPED 07/21/17
ACHC 10/7/2016 46.25 50.89 4.64 -10.03% sell STOPPED 07/21/17 NEW STOP LOSS = half initial stop
KCG 4/21/2017 19.75 20 0.25 1.27% LONG STOPPED 07/21/17 MERGER w VIRTU

The preferred outcomes in each stop loss update are either a winner that rode a trend for months or a quick exit with an exit close to a calculated and suggested stop loss price. The best stopped ideas include cost effective losing trades. Every trade ideally should be planned in advance of actually being traded, with planned trade size and exits. Of course this doesn’t always happen but we can help control unanticipated losses with a preplanned trade size than if a “bet the farm” trade was made.

If only all ideas were like CSX. But it does happen enough times to help bring in the majority of the gains.

When a trade was...