Dr David Paul - The Psychology of Trading & Investing
Key Principles
- In the medium term (1-5 years) - optimize for the lowest avg buy price vs the highest avg sell price
- Keep up with financial market news & macro market trends
- Continue to educate yourself about investing in financial markets
- Holding cash (available right away but prone to inflation) vs investing in specific things that will outperform cash (higher risk with more upside)
- Have at least 50% of your entire portfolio in cash (available to use during the next 5 years)
- Invest at least 10% of your annual salary
- Save (in cash) at least 15% of your annual salary
- Invest based on Weighted DCA - based on risk strategy (using RSI + volume)
- Trade semi-actively in the market since trading of the medium term (not just buy and hodl)
Trading Frequency
- Perform 3-5 trades a month // 50 trades a year