More on stops and why they matter.
Just closed a batch of tech/AI positions over the past ~30 days. One table column shows "Drawdown Avoided" — how much further those stocks dropped after I sold. Yellow highlight = stop triggered. Non-yellow = discretionary exit.
The pattern is clear: planning the exit before you enter keeps you from riding positions into the ground.
Football teams have a game plan. Architects have blueprints. Your dentist has a treatment plan. Same logic applies to your portfolio — you need a risk management plan before you buy.
A stop loss is that plan. It tells you when your timing was wrong and gets you out before a small loss becomes a portfolio problem. Not emotional, not reactive — just process that protects capital and keeps you in the game long-term.
Just closed a batch of tech/AI positions over the past ~30 days. One table column shows "Drawdown Avoided" — how much further those stocks dropped after I sold. Yellow highlight = stop triggered. Non-yellow = discretionary exit.
The pattern is clear: planning the exit before you enter keeps you from riding positions into the ground.
Football teams have a game plan. Architects have blueprints. Your dentist has a treatment plan. Same logic applies to your portfolio — you need a risk management plan before you buy.
A stop loss is that plan. It tells you when your timing was wrong and gets you out before a small loss becomes a portfolio problem. Not emotional, not reactive — just process that protects capital and keeps you in the game long-term.
