TradeMaster Daily Stock Alerts Blog

Today, I’m going to reveal one of the serious questions we have concerning TRIGR. I wrote a couple days ago about the longevity of the stocks that appear in the Top 5. You may recall I said something to the effect that once a stock has demonstrated the combination of fundamental and technical strength to make the Top 5, it usually stays there for a while.

Well, both our newbies got bumped today. Green Mountain (NASDAQ:GMCR) and Innophos (NASDAQ:IPHS) didn’t make Friday’s Top 5. Now, just because a stock falls out of the Top 5 doesn’t mean the CFO embezzled all the free cash, revenues were overstated and the SEC is investigating.

Case in point, both Green Mountain and Innophos made nice upside moves today. Green Mountain jumped 3.23% to $43.51 and Innophos really did well, up nearly 6% at $32.91. For the week, Innophos rose 12% and Green Mountain did 2.6%. So TRIGR racked up 14.6% cumulative gains in 4 days. Do that week in and week out you’ll be doing well for yourself and your family.

When your dealing with a pool of 3,516 stocks, you might wonder how much difference there is between #2 and #62. The answer is: not much. Either way, the stock is in the 99th percentile. The problem here is one of volume. How many stocks can an individual hold in a day? And there’s an opportunity cost as well. If you hold Green Mountain for a few extra days, you may miss a better opportunity as it moves up the TRIGR rating.

As it happens we’re starting to deal with that issue now. My analysts Benson and Jason are working with my programmer Dan Mills to optimize TRIGR for performance. Basically, we all understand that the very best stocks don’t neccessarily make the largest percentage gains. And while it’s nice for the ego to say we’ve got the very strongest companies in the TRIGR Top 5, that’s not really the point.

The point here is to make money. Lots of it. As much as possible, as quickly as possible.

Benson is calling it "performance tracking". He wants to find from what position in TRIGRs ranking do stocks show the best risk/reward profile. As it now stands, TRIGR is geared toward minimizing risk. The TRIGR Top 5 simply are not going to lose more than a percent or two. But they may not have the most upside. If we can increase risk slightly, but increase the potential gains exponentially, well, that would be good.

We’ll pick back up with this idea next week.

Have a great weekend.

Ian

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