Systematic risk affects the entire market, while unsystematic risk is specific to individual investments. Should focus on actual risk rather than perceived risk, be cautious at market peaks, and prioritize minimizing losses in bear markets over maximizing gains in bull markets to achieve long-term outperformance.

In the last article, we introduced the three pivotal investment decisions. This article will dissect how cyclical investors can harness these principles: what, how much, and when to buy. First, an introduction to a crucial concept for cyclical investors: mean reversion.

When discussing formulating a personal financial freedom plan, it’s imperative to comprehend a key concept: investment is not the first step in financial management but a strategy built upon a solid financial foundation.

A profound understanding of the importance of long-term investment and stable returns is acquired in mastering financial knowledge. Moving to the practical aspect, the core of an investment strategy decision-making process can be subdivided into three critical questions: ‘What to buy,’ ‘How much to buy,’ and ‘When to buy.