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.

The Truth About Beating the S&P 500: What 8 Years of Real Trading Taught Me

I’ve heard this phrase countless times from financial advisors, academic researchers, and fellow investors. The conventional wisdom is clear: 90% of professional fund managers fail to outperform the S&P 500 over ten years, so why should individual investors even try?

How I Built an Investment Strategy That Beat the S&P 500 by 8% Annually for 8 Years

Eight years ago, I was frustrated. Like most investors, I was putting money into index funds and watching my portfolio swing wildly with every market tantrum. The conventional wisdom said I should just “buy and hold” the S&P 500, but watching 20% drawdowns every few years while barely beating inflation didn’t feel like a winning strategy.

Why Index Funds Are Sabotaging Your FIRE Timeline: The Systematic Solution

Most FIRE investors are unknowingly adding 5+ years to their retirement timeline by sticking with “safe” index funds. While the investment world preaches the gospel of passive investing, a growing number of sophisticated investors are achieving Financial Independence faster through systematic strategies.

Why Most DIY Investors Underperform (and How to Fix It)

The promise of DIY investing is appealing: take control of your financial future, avoid advisor fees, and potentially beat the market. Yet research consistently shows that self-directed investors typically underperform major market indices by a significant margin.

Trend Following Strategies: What 137 Years of Research Reveals (2024 Guide)

Trend following has long been a cornerstone strategy for traders and investors. By systematically riding market momentum, trend following strategies have historically delivered strong risk-adjusted returns across various asset classes. But how does the strategy hold up in different environments, and what does academic research say about its efficacy? Let’s explore the key insights from a wealth of scientific literature on trend following.

9 Proven Strategies to Reduce Portfolio Drawdowns in 2024 (Expert Guide)

In 2024, investors are more conscious than ever of the impact of market downturns on their portfolios. With global economic uncertainty and volatile market dynamics,reducing drawdowns - the peak-to-trough declines portfolio value - has become a key focus. By employing the right strategies, investors can protect their wealth and reduce the anxiety associated with significant losses. Below, we explore several actionable strategies to reduce portfolio drawdowns, helping you maintain steadier returns over the long term.

Portfolio Management