A: In all of the advisory services marketed by Money Map Press – unless we specifically say something to the contrary – our experts recommend that investors employ a 25% “trailing stop” on all their holdings, including new buys. That holds true for Private Briefing, as well.
Here’s a typical example that demonstrates why.
During one of their daily briefings, Bill Patalon learned about New York-based oncology biotech Delcath Systems Inc. (Nasdaq: DCTH) . Once the guru described the company’s proprietary system for chemosaturation, which is designed to administer high-dose chemotherapy and other therapeutic agents directly into diseased organs… Bill wasted no time recommending the stock to his Private Briefing readers.
The shares ultimately soared as much as 46% in less than five months. Then liquidity concerns, a dilutive secondary offering, competitive worries and a lousy stock market combined to send the stock down by more than half from where it was originally recommended.
One subscriber admitted to having ridden the recommendation to a big gain – only to give back all the profits and then incur a big loss by not using protective stops.
But – and this is key – investors who did use the “trailing stop” strategies that our experts recommend could have exited with a 10% profit.
What’s more, once the stock finished its sell-off, insiders bought huge positions in the beaten-down stock. Because that’s one of our best “Buy” signals – and because we still liked the company’s strategy – we told subscribers about the insider buying and “re-recommended” the stock.
Less than a month later, the stock gained as much as 59% from its post-sell-off nadir – meaning subscribers who followed our entire strategy (buying when we recommended the stock, while protecting themselves with trailing stops) could have profited nicely from both surges in the shares.