“Cut your losers, let your winners run.”
Quoted everywhere. Executed wrong almost everywhere.
The error is defining losers by price.
A loser is not a position that’s down. A loser is a position that fails one question:
Would I buy this today, at this price, with fresh capital?
Down but thesis intact → it stays. A drawdown alone doesn’t make something a loser.
Green but thesis stale → it goes. Dead money is a loser wearing a flat chart.
The mirror rule for winners: weight earned by appreciation is earned. The market promoting a position up your book is confirmation, not a sell order.
Price tells you what happened. Thesis tells you what to do.
Most investors don’t underperform on picks. They underperform on this question.
Many people don’t believe that musicians can make lots of money in today’s streaming era.
Well then how did the lead maraca player from a Southern California mariachi band became the world’s first trillionaire?
Elon has created thousands of millionaires. The only millionaire you’ve created is yourself. Elon is a wealth creator. You are a looter. While your title is POLITICIAN, your real profession should be called THIEF.
Nasdaq-100's new additions are popping premarket:
📈 $ALAB +8.9%
📈 $CRWV +7.5%
📈 $NBIS +5%
📈 $RKLB +6%
📈 $TER +4%
All five will join the Nasdaq-100 on June 22.
Removed from the index:
$CHTR $ZS $CTSH $INSM $VRSK