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How I Turn 80% Stock Gains Into Long-Term Wealth (Without Taking Bigger Risks)

A compounding strategy to achieve market-beating returns

11 min readSep 21, 2025
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‘Cut losers short. Let winners run.’ is a well-known investing expression.

It is, in fact, timeless.

However, an essential part of the expression is left out, which pays homage to the secret sauce of wealth creation.

The part that you will have heard of but likely have never got on top of in terms of execution.

The complete expression should be…

‘Cut losers short. Let winners run. Compound winners.’

Okay, I get that it doesn’t run off the tongue as smoothly as ‘Cut losers short. Let winners run.’

Rhythm is likely a big reason these expressions spread like wildfire through the ages without anyone questioning whether they are complete or accurate.

So what’s important here, I ask you?

An expression that rolls off your tongue or smoothly compounding your portfolio to obscene amounts of wealth?

I’ll assume it is smoothly compounding your portfolio to obscene amounts of wealth.

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DataDrivenInvestor

Published in DataDrivenInvestor

empowerment through data, knowledge, and expertise. Join DDI community at https://join.datadriveninvestor.com

Zaheer Anwari

Written by Zaheer Anwari

I help professionals and high-salary earners get consistent returns in the stock market https://bit.ly/grab-your-stock-market-blueprint

Responses (3)

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With respect to cutting losers short, is there a general timeframe that's used? I.e. give it a week (or month, etc.), and if it's not performing then cut it loose?

2

Mate the 4PS Method looks great, can’t wait to take a look at some charts of my favourite stocks and see if I can find the pattern. Thanks so much for sharing!

1

Looks like one very important factor is missing: volume. Short MA crossing Long MA on a short volume gives a false signal.