Exit Plan
A pre-written specification of the conditions under which a position will be closed, drafted at initiation and reviewed when triggers fire. The plan distinguishes thesis-completion exits (price target reached, catalyst materialized, variant perception priced in) from thesis-broken exits (falsification trigger fires, new bear case emerges that the original thesis did not contemplate) and from portfolio-level stop-loss rules. A written exit plan is the most reliable defense against improvised exits taken under pressure with capital at stake — the single most expensive class of mistake retail investors make.
Lessons that use this term
Related terms
Active Management · Active Share · AI Revenue · Anchoring Bias · Cost of Capital · Creation Unit
Open this term in the app → — no account needed; browse the full glossary while you research.