First Stop Loss Point Triggered for 2012 Solar Stocks Portfolio; Yingli Green Energy Holding (NYSE:YGE)
New York, New York- February 3, 2012- Investorideas.com, a leader in renewable energy stock research for independent investors releases solar stocks commentary from solar expert,
J Peter Lynch. Mr. Lynch discusses the first stop loss order for his 2012 solar stocks portfolio, Yingli Green Energy (NYSE: YGE).
Solar Stocks Commentary with J Peter Lynch at Investorideas.com
http://www.investorideas.com/PL/
Our first stop loss point for our 2012 Solar Portfolio was triggered this morning with YGE trading below $4.20. We did not question our system; we simply follow it and sold the position for a small gain of 1.92% on the YGE trade.
The current status of the portfolio is an unrealized Gain of 13.92% from the positions we did not sell yet PLUS the 1.92% gain on our stop loss trade.
As a reminder below are the stop loss points I have selected based upon technical support levels in each stock. I have set these stop points very close, since, as I mentioned in the last article I did expect the markets to pull back due to the fact that they are short term overbought.
The stops for the 5 stocks in our Solar Portfolio are.
CSIQ - $3.60
GTAT - $8.25
LDK - $4.70
TSL - $7.50
YGE - $4.20
If any of these stocks reach these levels I would recommend selling that position.
Remember – the number one rule of investing:
Minimize your LOSSES and Maximize your GAINS.
The HARDEST THING for investors to do is know when to sell. That is why you have to set specific, non-emotional prices to exit if things do not go right. You cannot allow your emotions to get involved and take over your thinking.
Remember: markets fool the majority of investors by “Climbing a Wall of Worry” which is exactly what it is doing now. Losses start and keep getting worse when investors get on the “Slides of Hope” and try and hope that their stock comes back – trust me, this is a technique that will NOT work. Trust in your system and follow it.
If you looked at the portfolios of the most successful investors you would, in general, see the following pattern:
Approximately 80% of trades would be either small losses and/or small gains and approximately 20% would be very significant gains. This is exactly how we dramatically outperformed the markets in 2010 and 2011. We cut our losses when things did not work out and we let our profitable stock run and maximize our gains.
Background Notes
Keep in mind that there are two basic types of equity (stock) analysis. Below are a brief description of each and its primary purpose:
Fundamental Analysis – this is the analysis of the fundamental financial condition of a company to identify which stocks you may want to buy when the timing is right. This form of analysis will give you NO indication of the best time to buy a stock or sell a stock.
Technical Analysis – this form of analysis will tell you “when” to buy a stock and when to sell the stock. It will do this by showing you (in chart format) the basic interaction of supply and demand and when the two change and shift which will indicate a time to buy or a time to sell.
Mr. Lynch has worked, for 35 years as a Wall Street security analyst, an independent security analyst and private investor in small emerging technology companies. He has been actively involved in following developments in the renewable energy sector since 1977 and is regarded as an expert in this field. He was the contributing editor for 17 years to the Photovoltaic Insider Report, an early publication in PV that was directed at industrial subscribers, such as major energy companies, utilities and governments around the world. He is currently a private investor and has from time to time been a financial/technology consultant to a number of companies. He can be reached via e-mail at: SOLARJPL@aol.com. Please visit his website for the promotion of solar energy – http://www.sunseries.net/.
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1 comment:
Interesting reading on Yingi Energy Holdings.
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