So you hit a button and it tells you exactly how many shares of each stock to buy to allocate your $50,000. You take that list, you go to your brokerage account, you buy those stocks. And you can actually link your brokerage account to TradeStops so that TradeStops is going to be getting information from your brokerage account to know what's going on with your accounts to help you manage it.
And then you don't buy the stocks unless they're in Richard's green-light mode, which means, Richard, they're in some kind of harmonic pattern, right, where they're trending higher? Is that the idea? Richard Smith: Trending higher, with momentum, and staying within their expected volatility. Porter Stansberry: Right navigate to this website. So they're trending higher in the right ways. Richard Smith: They're trending higher in the right ways and they're behaving well [laughs]. Porter Stansberry: Now, let me ask you a question. If you've got a stock – let's say a stock like Hershey. This is a tough question, okay? So you know I'm a huge fan of Hershey's business, and I think Hershey's great long-term for investors because it's very capital-efficient and it grows its dividend. And so now every year – we're now 10 years into our Hershey investment – we're making like 12% or 15% a year just in the dividend on our Hershey investment. It's hard to beat that compounding. So if you've got a long-term holding like Hershey, how do you manage that with your system? Because you wouldn't want to necessarily just sell it because it got into a red-light mode. But you also wouldn't want to hold onto it until it goes to zero if there's something wrong with the company and you don't know it. So how do you manage a longer-term position like that that's paying such a good dividend? Richard Smith: So I think you would agree with me, Porter, that trailing stops – I think you once called them training wheels, right? Wouldn't you say that? Porter Stansberry: Yup. I would. Richard Smith: If you've been investing for less than 10 years, you need the training wheels, right? You need the discipline of following a sell strategy. But what I've come to decide and conclude from my research over the years is that you can use discretion on 20% of your portfolio. Okay? Porter Stansberry: I like that idea. Richard Smith: For every two out of 10 stocks – you can choose two of your 10 stocks that you say, "Nope, I'm breaking the rules on this one. Hershey is just – I'm buying and holding it forever," right? You're still using position sizing. "But I'm not going to use a stop on this one. I've got a good reason for it, and I allow myself to do that on two out of 10 of my picks." I bet you'd like that idea. Porter Stansberry: I do. And I also like the idea that if – this is advanced. But, for me, if I'm getting paid a very high return on my capital, even if I have to take a little bit of extra risk to get that return, I'm okay with it. And at Hershey paying me more than 10%, something would have to fundamentally change to threaten that dividend income for me to sell. And so it's kind of a little bit different than a new stock. I mean, this is a stock we've had for 10 years. So now it's in a different category. You know, there's another category of stocks – and I don't want to confuse people too much.
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