Rule Du Jour: Rule #58 Max Fear Investing (Patreon)

Rule Du Jour: Rule #58 Max Fear Investing

This is a MEATY ONE!

"Your plan is most important when the world feels like it’s ending. Have a plan and stick to it!"

As crises climax and fear dominates, even the calmest minds will succumb to apocalyptic visions—backed by terrifying and accurate data. This is when most freeze. You don’t.

The Rule:
 When fear is max, my plan is always the same.

• I am prepared by having dry powder or liquid assets or margin available.

• Buy on blood, but on a schedule in layers. Know your layers. Don’t chase the bottom—layer in.

  • Rem my layers - nibble at first, then 2 to 3 x each layer down. Eg buy 1 Tesla share at $350, 3 at 300, 9 at 260. 27 at 220 etc. I amplify my layers akin to DCA on steroids but with an extra kicker. The harder it falls the harder I go.

    PS I am very proud of all the folks that got to 300 shares this dip.

• Know your rotations, your sectors, your goals. Eg MSTR / TSLA and my plan for 2025.

• NVDA was not on my bingo card unless it hit $100... once that happened I went in. When it fell lower I went in more.

• Paralysis is the enemy; your plan is the cure. I execute religiously and not phased by what is going on around me. The plan saves me from fear. In fact when fear is max you often see me smile. Most of my money was made during dire max fear crash times! Every property I own was bought in a crash.

• Optimality is a trap. Execution is everything. Quibbling over $200 vs. $220 is noise when the thesis says stock is going to $2000. Big upside makes small entry-point differences irrelevant. Focus on the magnitude of the move, not the precision of your entry.

You won't catch the exact bottom. You won’t need to.
 You just need to act while everyone else is frozen. That’s MAX FEAR INVESTING.