Here is a very vivid example of why you should automatically follow your exit signals, if you are utilising a trading method involving specific entry and exit criteria.
One of the guys in the mentoring programme went long on UK stock Ceres Power back in mid-July, after getting the appropriate entry signal. He then held on until an exit signal was given a few sessions ago, and pocketed a profit 7 times what he risked - a very nice return for pressing a couple of buttons and following the system. Today, the stock plunged over 70%.
Some might say that it was luck that he got out before the big fall, however price action and a simple trend following system got him into the stock at the right time, and also got him out of the stock at the right time. He also had the sense to follow the signals presented to him, banked his profits, and moved on.
It would have been quite easy for an inexperienced trader or investor to fail to heed the warnings given when the price trend reversed, and to have developed an emotional attachment to the stock, as it would appear that you could have bought in right near the bottom back in July. However, trend following requires great discipline and common sense to follow the rules, come what may. This chart is a very stark reminder of this.