Rule Du Jour: Rule #6: Make a Plan, Stick to it! (Patreon)

My investing rule "Make a Plan, Stick to it" is key. Stick to your investment strategy even during volatile market conditions" emphasizes the importance of maintaining a consistent approach to investing, regardless of market fluctuations. This principle is crucial for achieving long-term financial success and is a key component of disciplined investing.

Top Three Takeaways

• Avoid Emotional Reactions

  • Getting shaken out at market bottoms can be catastrophic. For The last bear market, I did not want to stack Bitcoin, but I felt I could manage risk much better and get far higher returns if I played option strategies on micro strategy. And that's what I did. It was a risky strategy, and there was a time when micro strategy fell to $165. I was probably $30 away from being liquidated because I sold a ton of pets, but I stuck to the plan and was not shaken out, and that paid off in a big way.

• Focus on Long-Term Goals

  • Discipline in investing involves adhering to a well-thought-out plan that aligns with one's long-term financial objectives. Tesla and Bitcoin are my two main holdings for this reason. I know they are both going to do very well. By staying focused on long-term goals, investors can better weather market volatility and capitalize on opportunities for growth.

• Consistency Over Time

  • Consistently applying a disciplined investment strategy is crucial for success. I set up my targets for a BTC number and a TSLA number and I stack to that and keep a very close eye on allocations. I benchmark this against my price target models and allocate accordingly.

Step 1 - It all starts with a plan. Then Step 2 is building towards that plan.