How to write a long-term investment plan: the HOLD template
Most people do not lose to the market. They lose to themselves: they chase rises, panic on falls, then sell. The fix is not predicting better. It is writing a plan while you are calm.
HOLD is a plan with four questions: H for Horizon, O for Ownership, L for Limits and D for Decisions.
The four questions
- H, Horizon: how long will I hold, and why?
- O, Ownership: after I buy, what will I give each year (time, energy, money)?
- L, Limits: the most I will buy, and the most loss I will accept.
- D, Decisions: on review day I have four doors (renew, adapt, complete, exit). What are my conditions for each?
A template you can copy
- I plan to hold ____, because ____. (Horizon)
- Each year I will ____, which takes about ____ of time and ____ of money. (Ownership)
- I will put in at most ____% of my savings and accept at most ____% loss. (Limits)
- My review date is ____. If ____, I renew. If ____, I exit. (Decisions)
Example (illustration only)
"I plan to hold a broadly diversified index fund for ten years, to build retirement savings. Twice a year I will check fees and allocation, 30 minutes each time. I will put in at most 20% of my savings and accept at most a 30% loss. Review each December: if my original reason still holds, I renew; if I hit the 30% limit, I review the plan."
This is only a writing example. It does not say what to buy or how much.
FAQ
Is HOLD a trading strategy?
No. HOLD is a planning framework. It helps you write down your horizon, responsibilities, limits and decisions. It does not tell you what to buy or sell.
How often should I review?
You decide, but write it down before you start. A common habit is at least once a year, or on a date you set.
Is this investment advice?
No. This content is for education only and is not investment advice. Consider your own situation or a licensed professional.
Looking for ideas to check with HOLD?
Arrie HK StockScreener screens Hong Kong main-board stocks every night. It only generates ideas and is not a buy recommendation. Before acting on one, check it with a HOLD plan, a stress test and an exit plan.
Open Arrie StockScreener ↗A separate tool on another site.
Keep reading
How to set an investment horizon: write down how long and whyAn investment horizon is how long you plan to hold, and why. Learn to write a specific hor…How to set an investment limit and a maximum loss lineInvestment limits are two numbers: the most you will buy and the most loss you will accept…Investment stress test: could you hold through a 30% or 57% fall?An investment stress test assumes the worst case happens and shows what your money and you…For education only, not investment advice. Content, examples and historical scenarios are illustrations and do not guarantee the future. Investing involves risk. Decide for your own situation or consult a licensed professional.