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Investing Guardrails - Cadence
In continuation of my Investing Guardrails series, today I will be discussing Cadence.
Through my background in football and engineering I have become very routine (sometimes to a fault...). Schedules and time management have been instilled in me from a young age. Having this underlying mentality and knowing the emotional impulses that investing can create, I knew I needed to implement a routine schedule - or cadence - for my investments.
Here is my basic breakdown of some of the Cadences and routines I have implemented into my investing strategy:
- Weekly Review - Weekend mornings I review my portfolio and update holdings in my tracking sheet. I enter my buy orders according to my Scorecard recommendations for market open on Monday morning.
- Quarterly Review - Review my portfolio and make any decisions for necessary changes in asset allocation, dividend reinvestment, and if any positions need trimmed. Place buy/sell orders accordingly for market open.
- Contributions - Bi-weekly contributions on pay day (as budget allows)
- Birthday Buys - My method of slow and steady diversification. I only start new positions on the week of my birthday, each year. This allows me to complete ample research for new positions throughout the year. It also allows me to continually build existing positions throughout the course of the year.
- Holding Period - My goal is to hold an investment for a minimum of 3 years prior to selling.
Sticking to this schedule prevents me from jumping in/out during the intra-day emotions and movements of the market. Additionally, it provides a quasi-DCA strategy where I am adding to positions regularly and regardless of price movement.
Speaking further on my minimum holding period and selling - I typically only sell if the position has become overweight and/or is a major loser in my portfolio. I have not had many sell instances yet, so this is still a work in progress.
These are just a few strategies that I have implemented that have helped me manage the emotional pull of investing.
Do you have any investing routines or cadences? I'd love to hear!
Have a great weekend!
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