The exit strategy is very key in our investment decision making as it enables IEI-Anchor maximize return and reduce inherent risk. A proper exit time determines when to sell a security so that we do not sell a performing stock or hold on to some securities when the underlying fundamentals have changed. These situations can lead to loss and missed profit opportunities. As a policy we exit an investment under the following conditions:
- If the investment fails to meet the original condition for buying them
- To enable us cut down our losses.
Failure to meet original condition
For us to invest in a security, we make use of both technical and fundamental analytical methods to ensure that the security meets certain criteria. Once the security fails to maintain the original criteria for selection, we exit it. Also, we cut Losses for any stock with a 20% decline or exhibit a Take Profit position may be adopted for gains of up to 10%-20%.