Hello investors,

Have you ever held onto a great stock only to give back all your profits?

The emotions of fear and greed can often cloud our judgement.  When we have had a good run on a stock, the temptation is to often let greed get the better of us.  We often tell ourselves things along the lines of:

  • “I best not sell now as it will go up 50% more”
  • “All I need to do is hold it another month and lock in some more profit”
  • “I will lock in my profits once I have made a further $5,000”

Conversely, when a share starts to fall, the emotion of hope and fear kick in and we start to convince ourselves along the lines of:

  • “I hope this will come back to the price where I bought the share, then I will sell”
  • “If I sell now, I will realise a loss and I do not want to do that”
  • “I have lost so much already, no point selling now, surely this stock will come back up”

Take away the emotion by applying the 4 Steps to Protecting Profits.

Step 1: Look for price falling away and volatility

Step 2: Price falls below the 40 Day Moving Average

Step 3: Relative Timing drops below 1

Step 4: REC = Sell

This powerful technique will take one of the hardest thing we can do as investors – when to sell – and make it a simple process. In the video below, I have used the example of Bellamays – a stock having hit a high of $15.38 per share on 24 August 2017 and currently trading under $5 a share as of 7 February 2017. The 4 Steps to Protecting profits technique noted the exit at $11.97 a share – saving you from a fall to a low of $3.73 on 11 January 2017 .  This powerful technique can be applied to any other shares you currently own or are looking to own.

Click Here to see exactly how this is done in this short video!