Portfolio Guardian™: The PROFIT Protector(SM) Detail Page

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The PROFIT PROTECTOR^SM Detail Page

The PROFIT Protector^SM—designed to keep you from losing profit on individual investments, The PROFIT Protector^SM acts like a safety net that trails the rising value of your investment. If the value stops rising and begins to decline beyond a range you determine, the security is sold and your profit is realized.

Key Features and Benefits:

Creates a ‘rising safety net’ that automatically trails each investment’s value.
Allow profit to be locked-in if investment stops performing and begins to significantly drop in value.

Creates A Rising Safety Net

Designed to keep you from losing profits on individual investments, The PROFIT Protector^SM acts like a safety net that trails the rising value of your investment. If the value stops rising and begins to decline beyond a limit you determine, the security is sold and your profit is realized.

The PROFIT Protector^SM differs from The PRINCIPAL Protector^SM in four important ways:

The PRINCIPAL Protector^SM can apply to the value of an entire portfolio or to an individual security; the PROFIT Protector^SM can only be applied to an individual security.
The PRINCIPAL Protector^SM is a pre-determined dollar level that triggers an alarm. The PROFIT Protector^SM is based on a percentage value.
The PRINCIPAL Protector^SM is a static value. Once set, it remains the same even when the value of the portfolio or a security rises. On the other hand, the PROFIT Protector^SM has a rising threshold. The level at which an alarm is triggered can go up but not down. Think of it as a safety net the follows an investment as it increases in value but ‘catches’ it if it starts to substantially decline.
The PRINCIPAL Protector^SM is designed to liquidate an investment if it significantly drops in value shortly after purchase. It protects you in case you bought an investment at the wrong time. The PROFIT Protector^SM is designed to protect profits as they accumulate over time and to lock them in should the investment reverse course and significantly decline in value.

For instance, let’s assume you purchased stock with an initial value of $100,000 and it has increased over the years and is not worth $145,000. For many investors, it can be emotionally difficult to sell a security that they’ve owned for several years and has increased in value.

Profit in an investment isn’t ‘real’ until that investment is sold and the profit locked in. Let’s assume that you wanted to preserve at least $40,000 of your profit but wanted to allow the investment to continue to rise in value. In that case, the PROFIT Protector^SM would be set at 10%.

In essence, the rising safety net would initially be set at $140,500 ($45,000 – 10%). If the value of the investment dropped to that level an alert would be triggered and the investment could be sold to lock in your profit. On the other hand, if the value continued to increase so would the safety-net value that would trigger the alert. If the investment value rose to $160,000, the safety-net value would increase to $154,000 ($60,000 – 10%).

Since the PROFIT Protector^SM can go up but can not go down it follows behind the investment on the way up and catches it if it starts to fall in value. Imagine how much more comfortable you would feel knowing there is a safety net under your investments!

The sensitivity of The Profit Protector can also be adjusted. For instance, if the value of a certain investment has increased more substantially, you may want to decrease the percentage drop that would trigger a sale to lock in profits. You might not feel as comfortable with a 10% drop at $100,000 as you did at $50,000. The PROFIT Protector^SM allows you to stay in control and choose the level of sensitivity you desire.

Another problem is that people stay in losing investments for too long. Overall gains in your portfolio can be erased by the poor performance of one investment. Being able to quickly exit losing trades provides you with greater stability and protection for the overall value of your nest egg.

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