In case you were wondering why our penny stock pick ideaEDGE Inc. (IDAE) went to, it didn’t go anywhere…. it just changed its name. Just a couple of days after we bought in, the company adopted the name Socialwise Inc., with a new ticker of ‘SCLW’. Nothing else changed about the company - the share price didn’t change through a split or restructure either.

Though we don’t care about the reason, we do like the way the market responded to the new moniker. We picked IDAE on the 11th, when it was trading at 57 cents. Now it’s at 88 cents… a 54% gain. While the odds are good we’ll see some sort of pullback after such a hefty runup, we’ve got some profits to protect now.

On that note, however, DO PROTECT THOSE PROFITS! This is what I was talking about in the newsletter from the 13th… when there’s a profit cushion given to you, apply a stop-loss that lets you stay in a trade if it keeps chugging along, but gets you out of a trade if the stock takes an adverse turn. For Socialwise, that stop would be somewhere above 57 cents but below 88 cents.

As a rule of thumb, you might want to place profit-protection stops at the midpoint of the move. SCLW’s profit ‘midpoint’ for our trade is at 72 cents. As the profit widens, you can raise the bar accordingly. This gives you plenty of room to survive a little volatilty, but sill locks in a nice gain if the stock sinks precipitously.

Note that we won’t always be able to specify stop-losses on our picks; you’ll have to do that on your own in most cases.

If you missed out on this 54% gain (so far) on our Socialwise Inc. (SCLW) penny stock pick, it’s because you aren’t getting the free Small Cap Network newsletter. Sign up today.