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I offloaded the stock on Monday, and by Friday, it had soared by 75%. +75%!

That's my story from last week, and I'm certain that you've encountered something similar (if you have, please hit reply to share it with me).

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Unraveling the Events

Allow me to retrace my steps and elaborate on the turn of events and what there is to glean from it.

I acquired SK-Electronics back in May this year following its endorsement in the March newsletter. Initially, it saw about a 10% uptick, but then gradually began declining a few percentage points every week.

It reached a juncture wherein every Monday, during my portfolio review, the company hovered close to nearing its trailing stop loss limit of 20%.

Meanwhile, the Japanese market had surged by over 10% over the same period. Hence, it was underperforming against the market.

That Monday last week, I reached my limit. The company was lingering at -19% and was down on Monday morning in Japan. I opted to sell by taking decisive action.

Naturally, you can fathom what ensued. On Tuesday, the company announced stellar results, doubled its dividend, and the stock skyrocketed by 25%. The subsequent days saw a further 50% surge, culminating in a 75% spike within the week! (Subscribers are now enjoying a 68% gain- see below)

As you can presume, I was thoroughly irked.

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What are the Odds?

Reflection led me to ponder, what were the chances of selling a stock on Monday, subsequent results being unveiled on Tuesday (in the current economic climate with unpredictable outcomes), and then witnessing the stock ascend by 75%.

I'd reckon, approximately 1%.

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Parallel Experiences

I'm certain you've had similar experiences at some point.

Not just missing out on a significant gain, but also evading a substantial loss as a stock's value plummeted shortly after you parted ways with it.

The peculiar aspect is, why do we dwell more on neglected profits than the losses we dodged?

Similarly, we tend to recall major losses far more vividly than substantial gains.

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Emotions in Investment

My friend, this is human nature.

It encapsulates loss aversion, a concept recognized by Daniel Kahneman and Amos Tversky honored with the Nobel Economics Prize.

Because of our inherent loss aversion, we adhere to a rigid 20% trailing stop loss system and cease purchasing when the market is below its 200-day simple moving average. Principles I myself abide by in my portfolio.

We adopt this approach to and assure subscribers and I uphold the investment strategy. A strategy we comprehend (having tested it across all markets over extensive periods) will yield substantial long-term returns.

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Lay the Groundwork

That is why I continually emphasize or make them manageable for you.

Without it, − during an extreme market low – when it's actually the ideal time to purchase.

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Quant Value Newsletter Update

Newsletter subscribers are currently enjoying (mentioned earlier), given that it only assesses stop loss levels once a month.

Despite the slump in most markets last week, newsletter subscribers continue to relish :

• North America +14%
• Europe +8%
• Asia +20%
• Crash Portfolio (2022) +29%

If these concepts pique your interest, you can acquire further insights here: Your Treasure Map to Europe, Asia, and North America's Hidden Gems!

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Shareholder Yield Letter Update

, when we initiated this, and am enjoying post the retreat in the markets last week.

If these are the sort of companies you aspire to invest in, you can find more details here: Invest big, win bigger with our market-beating large-cap strategy!

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Your advocate for preserving minimal losses and emotional turmoil

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To identify exceptional companies aligning with your investment strategy right now, click here.

It's incredibly easy to forget, so why not register now before distractions set in?

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