Getting Started
Q: What is the $20 Rule?
A: The $20 Rule means for every $100 you earn, you invest $20. It scales with your income and builds discipline over time. No guessing, no excuses—just a clear, repeatable system.
Q: Do I need a lot of money to begin?
A: Absolutely not. The $20 Rule was designed to start small. Consistency matters more than dollar amount. Starting today is better than waiting for “someday.”
Q: What tools do I need?
A: Just Excel (for the SRL and SmartValue Tracker tools) and the willingness to follow the rules. No Wall Street background required.
Smart Rebalance Logic (SRL)
Q: How often should I open and check the stocks in SRL?
A: Once a week is ideal. SRL filters out noise and focuses on disciplined rebalancing. Checking daily risks emotional decision-making.
Q: What if SRL says “Buy” but the stock price is falling?
A: That’s the beauty of logic. SRL bases actions on undervaluation and portfolio balance, not short-term swings. If the system says buy, it means the math is in your favor.
Q: Can I override SRL recommendations?
A: You can—but the system works because it removes emotion. Every override reintroduces bias, so proceed with caution.
Q: What does “Trade Friction Cost” mean?
A: Trade Friction Cost is the built-in assumption for transaction costs—things like brokerage fees or slippage. It’s there to keep your plan realistic, not theoretical.
| Portfolio Size | Friction Cost Setting |
|---|---|
| < $1,000 | $15–20 |
| $1,000–$5,000 | $10 |
| $5,000–$25,000 | $5 |
| $25,000–$100,000 | $2–3 |
| $100,000+ | $1 |
SmartValue Tools
Q: What is the SmartValue Tracker?
A: It’s your discipline dashboard. Every $20 Rule contribution gets logged, charted, and tracked. It’s a visual reminder that consistency pays off.
Q: Do the tools guarantee profits?
A: No tool can guarantee returns. What they guarantee is discipline—and discipline is what puts you ahead of most investors.
Mindset & Discipline
Q: Why do you say “Later” is the most expensive word in finance?
A: Because waiting costs you time, and time is the fuel of compounding. Every year you delay is thousands—or even hundreds of thousands—lost down the road.
Q: Do I need to watch the markets every day?
A: No. That’s exactly what Trade With Logic helps you avoid. The tools are built to strip out emotional trading and replace it with clear, rules-based investing.
Q: Can anyone use this system?
A: Yes. Whether you’re new to investing or experienced but tired of emotional mistakes, the rules are simple and adaptable.