So every time someone loses 1% on a stop loss, they're a "loser", but a moron who loses 100% because he "manages risk by position size not price" is in a "win win win win win win" situation. "i pAiD oFF mUh GT4!" And it only took ten years and a Christmas "loan" from mom.
But not a big loser. And how much will you have to borrow or sell come tax time? FWIW If I wanted a GT4 I'd pay cash. I'd borrow to invest, that way the interest is tax deductable.
That's my point. When you sare doing your calculations comparing divy income to cap gain income, you have to consider the tax implications. ROC lowers your acb so that eventually you have to pay cap gains on the ROC. It's a bookkeeping pain in the ass. Especially with monthly distributions.
DRIP $100K/year at $21.50 = ~4,651 new MSTY shares Tax owed (50% taxable @ 40%) = $20K Sell ~952 shares at $21 to cover tax Net gain: ~3,699 shares So even after paying tax, you’re compounding aggressively.
But you are now 100 percent contradicting yourself… You stated you don’t sell in the hole, thus all your losses are unrealized Not an offset, not a win win… Or are you now saying tight stops are dumb, but 80 percent drawdown stops are OK??? Regardless, you are an investor,not a trader, and I have always credited your common sense regarding position sizing…
Nobody serious would size their position cash secured. There are huge edges in dispersion on skewed downside structures in index and SN tickers exhibiting downside skew. Vol of vol upside in tech SN, crypto, etc. It's a combination of a capability ceiling and laziness that keep ppl from figuring it out.