Picking stocks can feel overwhelming, but you do not have to do it alone. This article shows you how the Quant Value newsletter helps you choose stocks using a successful data-driven strategy, removing guesswork and emotions.
You will learn why trusting a quantitative model beats personal stock picking, how the 2% rule protects your portfolio, and why stop-loss strategies help you cut losses early. Plus, see real-life winning stocks from the system. If you want to maximise returns while reducing risk, this article is for you.
Estimated Reading Time: 6 minutes
The Challenge of Picking Winners in Quant Investing
If you're like most investors, you've probably wondered how to pick the best stocks to grow your money. With so many options, it can feel overwhelming to decide which companies to buy and which to leave out.
But what if you did not have to make all those hard choices on your own?
A Proven System You Can Use
What if a proven, data-driven system could help you pick the best stocks to invest in? That's exactly what the Quant Value newsletter does—it gives you investment ideas based on solid research, not guesswork.
But even with these great ideas in hand, you might still wonder how to make sure you’re capturing the best ones for your portfolio.
This article will show you how to take the best ideas, balance your portfolio, and avoid overloading it.
Why Following a Quant Model Beats Stock Picking
It’s tempting to think you can outsmart the market by picking only the stocks you like or understand. Maybe you feel more comfortable with certain industries or avoid others because of past losses. Everyone has their own biases. But here's the thing: letting your personal feelings guide your investments can hurt your returns.
With the Quant Value newsletter, you’re given a list of investment ideas selected by a quantitative model. This model doesn’t care about feelings or trends—it’s built to find the stocks with the best chances of giving you high returns.
By trusting the model and following its recommendations, you’ll be able to remove emotions from your decisions and focus on what really works.
The 2% Rule: Limiting Risk While Maximising Gains
One of the most important rules you can follow in investing is to spread your risk across many different stocks. The Quant Value newsletter suggests investing no more than 2% of your portfolio in any single idea. This way, if one stock doesn’t perform well, it won’t sink your entire portfolio. It’s follows the rule of not putting all your eggs in one basket.
Do not think that by following the 2% rule, you miss out on big winners. You might be surprised which stocks shoot up in value. For example, Pandora, a Danish jeweller, rose 173%, and who could have predicted that?
By staying diversified, you ensure that you're in the game for those kinds of gains, without putting too much risk on any one stock.
Here are a few other best returns you could have earned:
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Reply SPA +269.2%
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MGI Coutier SA +239.1%
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Montupet SA +315.5%
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Linedata +157.1%
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Delclima +92.4%
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Dart Group +84.1%
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CropEnergies +75.9%
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Groupe Crit +75.2%
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Assystem +82.7%
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Esprinet S.p.A. -35.0%
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Kernel Holding S.A. -40.1%
We are Not Always Right
You have also seen there were a few ideas that have not done well (you know that you cannot win them all) but they have been in the minority. Ideas with gains of over 20% outnumber ideas with losses of more than 20% by more than 3.3 times. In other words the newsletter recommends 3.3 times more winners than losers.
Balancing Quality with Diversification: Avoid Overloading Your Portfolio
While it's important to diversify, you don’t want to own so many stocks that your gains get diluted. This is called over-diversification, and it can happen if you try to hold too many stocks at once. The key is to find the right balance—holding enough stocks to spread risk but not so many that you can’t benefit from big winners.
The Quant Value newsletter helps by giving you only a handful of well-researched ideas each month. This helps you focus on quality over quantity. A few ideas each month also makes sure they are the best rated companies that meet the newsletter’s investment strategy. You get the top 5 ideas each month not the top 40 ideas once a year.
If you stick to the newsletter’s recommendations, you won’t overload your portfolio, but you’ll still have enough diversity to protect yourself from major losses.
Using Stop-Loss Strategies to Protect Your Portfolio
Investing isn’t just about picking winners—it’s also about knowing when to cut your losses.
The Quant Value newsletter uses a strict 20% trailing stop-loss system that automatically tells you when to sell a stock if it drops too far in price. This helps you avoid emotional decisions, like holding onto a stock just because you don’t want to admit it’s losing money.
With a stop-loss strategy, you can sell underperforming stocks early, keeping your losses small. At the same time, you let your winning stocks keep growing. This way, your portfolio can handle market downturns without taking too many big hits.
It is easy for you to follow the stop-loss transactions, they are in every newsletter.
The Importance of Sticking to the Model
One of the hardest things about investing is staying disciplined. It's easy to second-guess yourself and tweak your strategy.
But if you start picking and choosing from the Quant Value newsletter’s recommendations instead of following the model, research has shown that this will only lower your returns. The system works best when followed consistently.
The model has been tested and proven to work 30 years already. Trusting the process, even when some picks don’t look like winners at first, will give you the best chance for success.
The Psychology of Investing: Overcoming Emotional Biases
It’s natural to feel nervous when the market drops or excited when your stocks go up. But these emotions can lead to poor decisions, like selling too soon or holding on to bad investments for too long.
The Quant Value newsletter helps take emotions out of the equation by giving you clear, data-driven recommendations. If you find yourself feeling anxious about a particular stock, remember to step back and look at the bigger picture. Trust in the model, and let the numbers guide you.
Over time, you’ll find it easier to overcome your biases and stick to the plan. Keeping a journal of your thoughts and feelings during market movements can help you see where emotions might be influencing your decisions.
Conclusion: A Simple Yet Powerful Strategy for Maximum Returns
At the end of the day, the simplest and most effective strategy is to trust the Quant Value model, follow the 2% rule, and use stop-losses to protect yourself from big losses. By doing this, you’ll be able to capture the best ideas from the newsletter and maximise your returns without overloading your portfolio.
Ready to take your investing to the next level? Start capturing the best quant investment ideas today!
FREQUENTLY ASKED QUESTIONS
1. How do I know if I am picking the right stocks?
Most investors rely on gut feelings, news tips, or past experiences, but these methods often lead to poor results. A data-driven system, like the Quant Value newsletter, removes emotions from the equation. It selects stocks based on proven factors like valuation, financial strength, and momentum. Trusting a systematic approach gives you the best chance of picking winning stocks.
2. Should I invest in stocks I personally like or understand?
It feels natural to invest in companies you know, but personal bias can limit your returns. A quantitative model ignores emotions and focuses on undervalued stocks with strong fundamentals. By following a rules-based approach, you gain exposure to opportunities you might have overlooked—and avoid costly mistakes driven by familiarity.
3. How do I limit my risk when investing in stocks?
The best way to manage risk is diversification and position sizing. The Quant Value newsletter recommends investing no more than 2% of your portfolio in any single stock. This way, if one stock underperforms, it will not significantly harm your overall returns. Spreading your investments across different industries and markets also helps reduce risk.
4. How do I know when to sell a stock?
Many investors struggle with selling decisions, often holding onto losing stocks for too long. The Quant Value newsletter uses a 20% trailing stop-loss—if a stock drops 20% from its highest price since purchase, you sell. This ensures you cut losses early while letting your winning stocks continue to grow.
5. Can I beat the market by following a strategy like this?
Yes, but only if you stick to the process. The Quant Value system has been tested over 30 years and consistently outperformed the market. The key is discipline—avoiding emotional decisions and following the rules. Investors who pick and choose stocks from the newsletter instead of following all recommendations tend to perform worse.
6. How many stocks should I own to stay diversified but not over-diversified?
Holding 20–30 stocks is a good balance. Owning too few stocks increases risk, while owning too many dilutes potential gains. The Quant Value newsletter provides a focused list of high-quality investment ideas each month, helping you build a diversified yet manageable portfolio.
7. What if the market crashes? Should I stop investing?
Market downturns are normal, and they often create great buying opportunities. The key is to stay invested and follow your strategy. If you have a system that selects strong, undervalued stocks, you can use market drops to buy high-quality stocks at bargain prices. Trying to time the market rarely works—long-term discipline wins.
