Let profit run: The fabulous case of multibagger KEMET Corporation (NYSE:KEM) 370% return

This post is meant to review one of the stock that has gained me a 370% profit with my automatic trading system.

KEMET Corporation is my largest multibagger so far. I entered a position into KEM in mid Nov 2016 at a price of 4.15 when there was a buy signal from my system. Since then it has been trending upwards with a few occasions of accumulation. After reaching the highest price of 24.64, it started a downtrend until it hit my stop a few days ago. It was sold at 19.53 bringing in a profit of 370.60%.

This is a classic case of letting profit run in trend following. Despite the downward pressures due to US presidential election, North Korea nuclear threat and the fear that rising interest rates would jitters the market, this stock continued its march upward. 

Most important lesson I learn here is to follow the rule of the system and not to make my own judgement. There were many occasions when I was tempted to sell all or average down, wanting to realize the huge profit when it hit 100%, 200%. It is hard to resist especially with all the bad news going around and the apparent consensus that the market is overbought and about to reverse. I am glad I stick to my system.

Profile
KEMET Corporation, together with its subsidiaries, manufactures and sells passive electronic components under the KEMET brand worldwide. The company operates through two segments, Solid Capacitors, and Film and Electrolytic. Its products include tantalum, multilayer ceramic, film, electrolytic, paper, and solid aluminum capacitors, as well as EMI filters. The company offers its capacitors for use in the automotive, communications, computer-related, industrial, consumer, military/aerospace, and alternative energy industries. KEMET Corporation sells its products to original equipment manufacturers, electronics manufacturing services providers, and electronics distributors. The company was founded in 1919 and is headquartered in Simpsonville, South Carolina.

Performance Join as Member

 us on Facebook!