Investing Overview

Status: Scaffolded - Content pending Last Updated: 2025-12-11

What Is Investing?

Investing is the longest-term style — you're building positions for months to years. Focus shifts from short-term moves to major trends and fundamentals.

Typical Holding Period: Weeks to months (or longer)

Key Characteristics

Aspect	Investment Setting
Timeframe	Daily bars
Lookback	2 YEARS (730 days)
Bars Shown to AI	60 bars
RSI Window	14 (standard)
EMAs	9, 20
SMAs	50, 100, 200
MACD	Yes

Why these settings?

• 2 years of data = full market cycles, secular trends
• Daily bars = no intraday noise
• 60 bars = ~3 months of daily context
• 200 SMA = the bull/bear market divider

Stop Loss & Target Rules

Element	Investment Range
Stop Loss	1.5x to 2x ATR (Average True Range)
Target 1	Based on resistance levels
Target 2	Based on longer-term trend
Time Stop	None (position-based, not time-based)

Investment trades don't have time stops — you hold until price action dictates exit.

When to Invest

Good Conditions:

• Stock in confirmed uptrend (above 200 SMA)
• Strong fundamentals (for fundamental investors)
• Sector rotation favoring the position
• Macro environment supportive

Avoid Investing When:

• Stock below 200 SMA (bear trend)
• Major recession signals
• Sector rotation away from position
• Fundamental deterioration

Asset Types for Investing

Asset	Investment Support	Notes
Equities	✅ Full	Most common approach
Options	✅ Full	LEAPS (30-60 DTE minimum)
Futures	⚠️ Limited	Long-term structure + rollover-aware planning
Crypto	✅ Full	High volatility, long-term trends

Investment vs Trading Mindset

Factor	Trading	Investing
Time Horizon	Minutes to days	Weeks to years
Stop Strategy	Fixed dollar/percent	ATR-based, wider
Position Size	Aggressive	Conservative
Drawdown Tolerance	Low	Higher
Win Rate Focus	Critical	Less critical (bigger wins)