Investment Strategy

Why I Never Use Stop Losses (And You Shouldn't Either)

• Fabio Capela
• Risk management , Investment strategy , Portfolio management , Systematic investing , Trading psychology , Position sizing , Market volatility , Investment discipline

“You should always use stop losses.”

I’ve heard this advice countless times from financial advisors, trading courses, and investment books. It’s supposed to be one of the fundamental rules of risk management—set a level where you’ll cut your losses and stick to it no matter what.

Why I Stopped Believing You Have to Choose Between High Returns and Low Risk

• Fabio Capela
• Low volatility investing , Risk management , Portfolio optimization , Systematic investing , Investment strategy , Volatility control , Asset allocation , Risk return analysis

Every investor gets told the same story: if you want high returns, you have to accept high risk. Want to play it safe? You’ll have to settle for mediocre returns. It’s supposedly the fundamental law of investing, as immutable as gravity.