When Should You Sell A Stock That Has Made Huge Profits For You?

Editor’s note: Below, you’ll find the fourth installment of Louis Navellier’s series on how he discovered one of the world’s most powerful short-term trading strategies.


Every good short-term investment has a buy.

Every good short-term investment has a sell.

So when should we sell a stock that has enjoyed a "geyser" phase that has produced 30% — 300% profits for us in a matter of months?

It’s actually easy…

The fundamental and technical factors that set A+ stocks apart from the pack and indicate that we should buy them are the same factors we monitor to know when we should sell them.

Put simply, we watch for declining institutional buying support. We monitor the elephants.

Once a stock’s institutional buying support ratings begin to weaken, we sell the stock and move on to the next big opportunity.

For example, earlier in this series, I mentioned that we made a 96% gain in less than six months in semiconductor equipment company Nova Measuring Instruments (NVMI).

But after we made those gains, Nova began to began to lose its ability to outpace the market with reduced volatility. We sold it June 2017 and moved on to stronger stocks.

Chart: Nova Measuring Instruments Ltd. (NVMI)January 19, 2017 through August 31, 2017

Now, a "sell" in our short-term system does not mean that a stock is a bad long-term investment. It very well could be a great long-term investment.

But for the purposes of generating consistent short-term profits, we’ve found that a decline in institutional buying support is a clear indicator it’s time to move on, take profits, and focus on stocks with superior ratings.

Our system is very picky. It demands excellence from stocks. We don’t let our money sit in a stock with declining ratings when we know it can be deployed into stronger stocks. After all, I believe our money deserves the very best.

Summing Up

Uncovering the "super stocks" — the stocks with elite fundamentals that generate massive short-term gains — I’ve been telling you about is one of the most exciting and significant events in my career.

Their ability to generate big returns with a lack of real volatility never ceases to amaze me. Their ability to generate returns in weak markets never cease to amaze me. In 2001, 2002, and 2003, this approach did very well, despite the broad market’s weakness.

As I mentioned in this essay, on average, these stocks have performed 83.3% better than the broad market. When applied consistently over time, that’s an edge that can add an extra zero to your net worth.

If you’re willing to learn something new, and willing to put in a little more work than the average investor to make a LOT more money, using the strategy I’ve told you about could be one of the greatest financial decisions you ever make.


Louis Navellier

Louis Navellier

P.S. Thank you for giving me the chance to share with you how my accidental discovery led me to discover one of the most powerful money-making systems on Earth. It’s a system that has helped my readers double and triple the markets’ returns over the past 20 years. To learn more, Click here.

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