There is a reason that generational wealth has historically been accumulated by investing money early and often. As I often say, the best way to make money is to put away money you don’t need when you are young and forget about it until you are old.

It’s really that simple.

Timing the market is a fools errand as an investor, which is being proven at the moment. What fundamental or technical element explains what is happening? I “missed” the opportunity to buy near the “bottom” of the stock market as a trader but that does not bother me. Why? Because I have NEVER strayed from my investing strategy – I continue to blindly buy SPY, AMAZON and select retirement targeted mutual funds. I bought the dip unintentionally because I am on autopilot, while my rational mind has been befuddled by the economy and price action.

This is a reminder as to why a key aspect of risk management is portfolio balance. I ONLY TRADE with 15% of my accounts. 70% is investments, 15% is cash. And I keep my crypto portfolio separate from my equities and other investments, with the same breakdown.

So even if I am continually wrong on trades, I am not exposed to major losses overall. Even if I “lose everything” that I am trading with, it’s only 15%. That’s how I feel comfortable, and that’s how conventional wisdom has said to manage a trading portfolio for ages. Traders rarely beat investors.