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.

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

• Fabio Capela
• Market outperformance , Systematic investing , S& p 500 analysis , Investment performance , Portfolio management , Risk management , Quantitative finance , Active investing

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

• Fabio Capela
• Systematic investing , Portfolio management , Investment performance , Market outperformance , Risk management , Asset allocation , Quantitative finance , Financial strategy

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.