The speaker outlines a tiered investment strategy for a declining market, emphasizing the importance of a structured plan over attempting to time the market's bottom. The core idea is to gradually increase investment as stock prices fall, rather than making large, impulsive buys. Specifically, the strategy suggests buying 25% of the intended position at a 20% drawdown, another portion at a 30% drawdown, and increasing investment more aggressively at a 40% drawdown. The speaker posits that emotional decision-making leads to financial losses, while a well-defined structure and plan are key to building wealth.

Stocks With Zach

If the market continues to go down, how you win to me is kind of a tiered approach. Stop trying to call the bottom. Exactly.

If you're long-term on these stocks, instead buy 25% uh at 20 at 20% draw down. Buy a little bit more at 30% draw down. Buy a little bit more uh a little bit more aggressively at a 40% draw down. Right?

Have a structure. Have a plan. And what I found is this. Emotion tends to lose money over time. Structure builds wealth. You got to have a plan.

The 20-30-40 rule that made me rich in crashes

If the market continues to go down, how
you win to me is kind of a tiered
approach. Stop trying to call the
bottom. Exactly. If you're long-term on
these stocks, instead buy 25%
uh at 20 at 20% draw down. Buy a little
bit more at 30% draw down. Buy a little
bit more uh a little bit more
aggressively at a 40% draw down. Right?
Have a structure. Have a plan. And what
I found is this. Emotion tends to lose
money over time. Structure builds
wealth. You got to have a plan.

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The 20-30-40 rule that made me rich in crashes

Transcription