How to write an investment exit plan: when to sell, renew or let go
Letting go is not losing. Many people plan the purchase and never plan the exit, so they decide at their most frightened moment.
An exit plan is written before you start: under what conditions will I leave.
Write exit conditions first (examples)
- The original reason no longer holds.
- I hit my written loss limit.
- There is a better use for the money.
- The horizon has arrived.
Six review-day questions (illustration)
- Does my original reason still hold?
- Did I hit my limit?
- Is there a better use?
- Has my horizon arrived?
- Can I still take care of it?
- What do my written rules say?
Four outcomes
- Renew: the reason still holds.
- Adapt: change the amount, horizon or limit, and record why.
- Complete: the goal is reached, so close it as planned.
- Exit: let go as planned, for example by selling or giving it away.
Record the result
After you choose, write down the result and the reason, to improve next time.
Try it on junjun.life
Use the exit plan and review checklist with your own numbers.
Open the exit plan and review checklist ↗FAQ
Does exit mean selling everything?
Not necessarily. Exit is one of the doors. It depends on the rules you wrote in advance.
When do I write an exit plan?
Before you start, while calm.
Is this investment advice?
No. For education only, not investment advice.
Looking for ideas to check with HOLD?
Arrie HK StockScreener screens Hong Kong main-board stocks every night. It only generates ideas and is not a buy recommendation. Before acting on one, check it with a HOLD plan, a stress test and an exit plan.
Open Arrie StockScreener ↗A separate tool on another site.
Keep reading
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