This is the editorial of our monthly Quant Value Investment Newsletter published on 03-06-2025. Sign up here to get it in your inbox the first Tuesday of every month.
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Ever felt shaken by a market drop, this post will show you how to stay calm, confident, and in control.
You will learn why great investors do not try to be right all the time. They learn how to be wrong the right way. This article shows you how to build mental strength by trusting a proven system that protects your downside and removes the stress of guesswork. If you want fewer setbacks, better decisions, and a more peaceful investing path, this post is for you.
Estimated Reading Time: 5 minutes
Thinking about the recent correction and the powerful recovery, I found the following ideas valuable, and I thought you will as well.
If you have followed the Quant Value newsletter for any length of time, you know we do not rely on opinions, forecasts, or stories. We trust the investment model. We filter out noise. We only invest when the odds are in our favour.
But behind this discipline lies something deeper.
Successful Investors Are Not Always Right
Jack Schwager in his great book Market Wizards made one point that I remind myself of all the time:
"The most successful investors are not those who are always right. They are the ones who know how to be wrong. They take a hit, reassess, and move forward with more clarity, not less."
They do not double down emotionally. They step back and stay systematic.
In the book Momo Traders, I read about traders who blew up. Who lost everything and then came back stronger. They had early success, suffered massive setbacks, and instead of quitting, recommitted themselves with new eyes. They were passionate enough to keep going, and persistent enough to rebuild with discipline.
Why This Matters to You
If you are reading this, you (like me) are likely a Strategic Simplifier. You value clarity, performance, and emotional relief. You are here not to gamble, but to grow your wealth with less stress.
And that means staying the course when markets get tough.
Mental toughness, it turns out, is not about grinding through pain. It is about aligning your energy with a meaningful path. When you believe that an investment strategy works and you see your first win, you begin to shift from following advice to owning the process.
That is the moment you stop trying to find the right system and start realising this one works for me.
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Why Our System Builds Mental Strength
Our Quant Value process was built for market moments like this:
· We do not recommend new stocks in down markets.
· We follow a 24-point checklist to verify every pick.
· We stop-losses at 20% to limit drawdowns.
· We use proven screening filters backed by research, not media hype.
This gives us emotional resilience. It is not just the numbers; it is the belief the numbers are part of a tested system. That belief gives you staying power.
A Deeper Reason to Stick with It
Most investors fail not because they pick bad stocks, but because they give up after setbacks. They jump from idea to idea, system to system, always looking for something better or something that works right away.
But once you commit to a rules-based strategy and see it through the tough cycles, you start to win in ways others cannot. Your confidence grows. Your stress drops. Your results compound.
That is the spirit Quant Investing and of the Quant Value newsletter. Built by investors, for investors. Forged through setbacks, structured for success.
Your Takeaway
You already have the tools. You already know the rules.
Now it is about showing up. Persisting. Staying systematic even when markets get shaky.
This is what separates the ordinary investors from the extraordinary. Not raw intellect. Not timing the market. But passion and persistence, applied using a proven process.
Let this recent drawdown remind you. The system works. And if you trust it, and stick with it, you will come out ahead.
Smart, systematic investing leads to financial independence faster and with less stress.
Your, stick to the process analyst wishing you profitable investing
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FREQUENTLY ASKED QUESTIONS
1. What should I do when my stocks drop during a correction?
Stay calm. Do not panic or sell just because prices fall. A 20% stop-loss rule helps protect you. Trust the system you follow. If the model says hold, then hold. If it says sell, then sell. The goal is to protect your money and reduce stress.
2. How can I tell if I am following the right strategy?
Ask yourself: Does this strategy help me stay calm during market drops? Do I understand how it picks stocks? If the answer is yes, and you have seen some early wins, then you are on the right path. A good system brings peace of mind and results over time.
3. What if I lose money on a pick? Did I fail?
No. Every investor takes losses. What matters is how you respond. Successful investors take small losses, learn, and move forward. The system has rules to cut losers early. This is part of the process, not a sign of failure.
4. Why does the system stop buying in down markets?
When markets fall, many stocks fall together. Even good ones. Buying in a downtrend often leads to big losses. So we wait until the market is strong again. This protects your capital and keeps you from buying too early.
5. How does this system help me stay disciplined?
It removes guesswork. You follow checklists, rules, and data—not feelings. This keeps you from chasing hype or reacting to fear. The more you trust the system, the more confident and relaxed you become.
6. What makes this different from just picking good stocks?
The system looks at more than just price or news. It checks 24 points on every stock. It avoids bad times to buy. It uses proven filters. This structure helps you avoid mistakes that many other investors make.
7. Why do most investors quit too early—and how can I avoid that?
They chase quick wins or switch strategies too fast. When one pick fails, they blame the system. But the real key is to stick with one good process through ups and downs. That is how results build over time. Believe in your strategy, and give it time to work.
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