I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down

Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Saturday 14 January 2023

Stop-loss, Cut-loss for Switching Horses and Position Sizing and NO Leverage! (2)

Wah! Uncle8888 was very surprised when he read  If I am a dividend investor, this is what I would do….

4. No earn no sell especially for dividend stock. Keep long term, no stop loss policy because point 1 is followed.

This rule is contrary to what most people would do. No cut loss policy.

I have learnt this rule from Createwealth8888. If you didn’t do any leverage/plan allocation well (Rule 3) and only buy good stocks that let you sleep well (Rule 1), there is no need for you to cut loss.

Price drop, just hold and collect dividends as Panadols. Throughout the years, treat the dividend (or simply use the Trading around Core Strategy – Rule 5 below) to reduce the average cost of your shares. The worst case is stock goes to zero or in most case, your average cost will be reduced over time.

Read? Stop-loss, Cut-loss for Switching Horses and Position Sizing and NO Leverage!


  1. CW,

    Well, Mr Influencer, up to you whether you want to give your "parrot" a little nudge on context...

    I'll give chance. It's just an "aspirational" this is what I will do post...

    The core of his thesis sounds a bit like, "Only buy stocks that go up; stocks that don't go up don't buy."

    Awkward pause.

    Buy big; never cut. The most go to zero only ...

    Your money management only works because you have your 10 baggers to dilute out your zero baggers.

    How many dividend investors got any 10 baggers in their portfolios?

    Eh ...

    I am "poking" you CW. He didn't know better. But you?

    The kit-kat break is over!



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