About Exit Strategies
It’s all about the exit. The sell point actually determines the final outcome of
an investment. However, even savvy investors have a difficult time deciding when
to sell. They may get nervous and sell a winner too soon — or hold losers far too
long. Some set “mental” stops and then fail to execute them. Others use trailing
stops only to find themselves “whipsawed” out of a stock just before it takes off
for a big gain. A good exit strategy applied consistently lets profits run while
providing downside protection to minimize losses.
Traditional exit strategies are difficult to deploy and time consuming to maintain.
As a result, most conventional exit strategies fall dismally short of their intended
goals. Not SmartStops. Using SmartStops couldn't be easier. SmartStops automatically
determine the optimal exit for each stock in your portfolio and maintains those
exit triggers, adjusting them each market day based on current market conditions.
This advanced, patent-pending methodology is based on analytics and strategies developed
by Chuck LeBeau, a recognized expert on “adaptive” exit strategies. Based on current
market conditions and the trading activity of the particular stock, SmartStops move
closer to or further from price action so that sudden price movements don’t generate
a premature exit, known as a “whipsaw”. This enables your stocks to ride upward
trends longer.
With SmartStops, you’ll save time and effort and enjoy peace of mind knowing you
have an exit strategy in place every day. SmartStops are suggested trigger points,
but you always have complete flexibility to set your sell orders based on other
information or approaches you consider most appropriate.
SmartStops enable you to:
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Easily maintain downside protection that positions you to quickly react to changing
market conditions on a daily basis.
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Align your exit strategies to short- or long-term investment goals.
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Respond quickly to unusual negative price action.
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Achieve higher rates of return.
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Drastically reduce the probability of catastrophic losses in bad markets.
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Better utilize broker capabilities to always be prepared to automatically sell stock
before a market correction erodes profits or results in a loss.
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