stefanscrivener
United Kingdom
5m
Copy traders if you choose, but who is telling you when to take profits and redeploy? Rinse and repeat, or hold and hope? Wait for a crash, or use fixed risk management while taking advantage of this risk-on environment? This cannot last forever. I thrive in a crash. I don’t short. I don’t use leverage. I compound. Picture this. You hold an asset that climbs 100%. In the same time, you’ve locked 300 separate 10% realised gains while still holding part of your original position. That’s 300 redeployments. More capital. More buying power. More compounding. Your portfolio doesn’t just grow in value, it grows in percentage terms because the capital base keeps expanding. The most common mistake is buy and hold forever. Look at SNPS. Look at AMD at $200 highs. What if you cut AMD at $190, took the “loss”, and then redeployed at $75? Where would you be? Compounding is not a zero-sum game. It is disciplined risk management. I see copy traders bragging about 0.5% a month. How much of that is profit redeployed compared to just holding forever with no stop losses, no risk management, and no clarity on taking profits? Don’t copy trade. Not even me. I cannot tell you exactly when and where I will take profits. What I can tell you, through the school of hard knocks, is this: Cut losers early. Let winners ride. Always use stops and risk management. Think of it like this. Would you buy a phone for £2000, sell it for £1500 knowing it is still depreciating, then buy it back at £1000 before it climbs to £2500 as an antique? Accepting a “loss” does not have to be a loss. More often than not, it is the fastest way to grow.
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