From Patti M.: Teeka Tiwari, your biggest winning trades happened before I joined Jump Point Trader (JPT). Since I subscribed, I’ve seen none of your trades make notable moves. How long do you suspect we need to be patient?

Teeka’s Response: Patti, thanks for taking the time to email me. It sounds like you’re upset with the performance so far. I’m sorry to hear that. Hopefully I can provide some context.

JPT launched on November 21, 2014… about 100 days ago. Since then, the S&P 500 has dropped from 2,063 to a recent 2,043. The broad market has been weak and showing negative returns.

However, during that time, seven of the 11 stocks that I have recommended so far have made all-time new highs. Some have pulled back a little with the broad market. That’s okay. I fully expect them to start making new highs again as the broad market improves.

With our new relationship, I understand it’s normal to be concerned. But remember, at 100 days in, the JPT stock portfolio (not including options) is outperforming the S&P 500. So I’m going to ask for a bit more patience. Let our ideas develop and let the broad market find its feet again.

So long as we are position sizing appropriately, I believe that we’ll do extremely well. So long as our stops have not been violated, our job is to stay with the trade and let it develop in its own time.

Over two decades of investing and trading have taught me that this isn’t a race; it’s a marathon. I’ve seen too many great trades abandoned too early because of impatience. That’s why I love this service. It allows us to get on board potential rocket ships and not worry about the day-to-day action.

(If you haven’t had a chance to take look at my recent video, Special Update: Exclusive View of Our Wealth-Building Formula, I highly recommend you do so. It should prove quite illuminating.)

From Pat M.: Teeka, why do you have buy-up-to prices in JPT if you are expecting the stocks to go considerably higher over time?

For example, one pick had a buy-up-to price of $138. What was the risk in buying it at $140 or $145? Thanks.

Teeka’s Response: Great question. There are a couple of things behind the logic on this decision. The first is that we have to draw the line somewhere. Otherwise, we could get trapped into chasing the stock. I want to avoid that.

The other reason is that we are always looking to own stocks that will skyrocket. A high percentage of stocks selected will have very large moves… but not every stock will be a superstar. Some will have small, muted moves and a few will hit our stop-loss points. It’s impossible (without a crystal ball) to know for sure whether a stock will be a “slow-poke” rocket or the occasional flat out dud.

That’s why we use rigorous buy-up-to prices, position sizing, and stop-loss points to manage the unknown. They ensure we will own all the big winners while guaranteeing we won’t get clobbered by the odd loser.

It’s an amazing program that I believe we can profit from for more than a decade.

All the best to you and your family.

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