But I wanted to take this space to extol the importance of a well considered Exit Strategy..
Yes, we believe that entries are the easier part..
So, let's explore how we navigated, and are navigating, our exit in PLUG.
Around 8 days ago, we alerted our Premium Members about PLUG at around the $3.30 price level.
And to be forthcoming, it shortly dropped to $3.06 and within range of our $2.96 stop..
Btw, all relevant details about our positions including stop levels, unit size(a measure of our enthusiasm and relative position size) and recent update commentary is made available for our Premium Members in table form on their Premium Content tab("Premium Holdings Data Table").
Anyway, the reason for our interest in the stock hadn't changed..so we were prepared to get stopped out if proven wrong.
As it happened, roughly 3 days later after the market close, Plug Power announced a key contract signing and the next morning the stock was up around 20% in the Pre-Market.
We have a 20% rule which basically states: "20% gain in under a week?, take some profits!". It's also important to note that we usually enter new positions with our minimum unit amount of 1. This more or less translates to What size position would you be okay with if the very real possibility of a 3-5% stop out occurred? This is considered 1 unit and our future additions are multiples of that.
Anyway, right after the market officially opened, we suggested that our Premium Members take 50% of that 1 Unit profit..in other words, lock in 20%.
A few days later it rallied another 10% and we suggested taking .5% of the remaining 1%.
So, now we are surely watching this one in Stealth Mode and are in the enviable position of already having made money in it, still having some skin in the game should there be an overnight pop and as we gain comfort with this new level, have no qualms about getting in again.
At this point it's important to clarify that just because we enjoy taking profits doesn't mean that we wash our hands of future involvement with any entity. So no, we don't ascribe to the notion that "Going back to the well" is a bad thing. On some of our biggest gains, like with CPST, although initially stopped out a few times for minimal losses, our system saw to it that we were riding high in the saddle for the eventual 40% move that started just 2 weeks later.
And lastly, in support of the importance we place on guiding exits, here's an example where we suggested taking profits in the very same trade when we saw a change in momentum..resulting in our members not having to endure a 20% pullback.
Now MEET is a slightly different scenario as we've owned it for quite a bit longer($2.25) and have added units(got to 3 Units) most recently.
That being said, we advised our Premium Members that upon review of our indicators(the same ones that led to our Buy Alert), perhaps this move had run it's course and even looks a bit exhausted.
Our suggested action was to take 2 units off the table, near the recent highs, and locked in another combined 15%..And we still have 1 unit left should something crazy happen over night and if it does indeed pull back, we've protected profits that we worked really hard for.
So, there you have it..an important aspect at consistently making money in this business is managing your risk and really considering exit strategies.
Feel free to reach out to us if you think this would benefit your investing and like a lot of other former basic members(of which you probably are) perhaps you'll be interested in trying out our Premium Membership with it's 5 Day Free Trial.