The Hardest Part of Investing: How to Buy Low (and Stick to Your Plan)

🎥Watch Now:  Smart Charitable Giving for 2025-2026

Why buying low feels so hard

Buying when prices are down is the hardest part of investing. Headlines shout bad news. Your gut says, “Wait until it feels safe.” But waiting for comfort often means missing a big part of the rebound. That’s why we set the plan before a drop. The plan is the calm voice when emotions run hot.

The two tools that do most of the work

1.  Rebalancing (built-in “buy low, sell high”) Over time, your mix of stocks and bonds drifts. After a run-up, you own more stocks than planned. After a drop, you own less. Rebalancing moves you back to your target mix. After a drop, that means adding to what fell—without guessing the bottom.
2.  Simple “buy-more” rules (decided in calm times) We write the rules now. We follow them later. That way, you can act when it feels scary, using steps you already agreed to.

The Rule of 10 / 20 / 30

• Down ~10%: Do nothing. This is normal market noise.
• Down ~20%: Increase your stock mix by 10–20% from today’s level.
• Down 30%+: Add more per the plan you set in calm times.

These rules are not about being brave. They are about being ready.

Why this works in real life

Market drops can be fast. Recoveries can be fast too. If you wait until the news sounds safe, you’re often late. A rule-based plan keeps you close to the turn. You may not catch the exact bottom—and that’s okay. You only need to be in for the recovery.

What to expect (and how to stay steady)

• Your feelings will fight you. That’s normal. Your written rules act like guardrails.
• You won’t time it perfectly. You don’t need to. The plan uses ranges and steps.
• Good habits compound. Rebalancing, saving on schedule, and smart tax moves add up over time.

Build your plan: A quick checklist

1. Pick your mix.
    Choose a stock/bond mix that fits your goals and your sleep level. For many Gen X and near-retiree investors, balance growth with stability.
2. Write your rules (keep them short).
    Use the 10 / 20–25 / 30 guide above. Put it on one page. Share it with your advisor and family.
3. Automate rebalancing.
    Set it quarterly or use thresholds. This makes “buy low, sell high” a habit, not a guess.
4. Control the basics.
    Keep saving, watch investment costs, and be thoughtful on taxes. Simple steps make a big difference.
5. Update when life changes.
    Job change, health change, or new goals? Adjust the plan—don’t wing it in the moment.

Quick FAQ

What if I buy and it drops more? That can happen. Your rules plan for deeper drops, so you add in steps—not all at once.

Do I need to call the bottom? No. The goal is to follow rules that keep you near the recovery, not to nail the exact low.

Is “do nothing” sometimes the right move? Yes. That’s your 10% rule. For normal ups and downs, staying put is often best. When drops get bigger, your rules guide you.

A healthy mindset

You don’t need a crystal ball. You need a clear process. Stay positive. Focus on what you can control: your mix, your savings, your discipline. The market will rise and fall. A simple plan helps you keep moving forward.

Ready to put this to work?

If you want a calm, rules-based approach, our team at Commonwealth Financial Services is here to help. We help people across the Mid-Ohio Valley—Wheeling, Parkersburg, Woodsfield and Marietta. Watch the video above, then reach out at CFSWV.com to start your plan. And if you found this helpful, give the video a thumbs-up and subscribe to Wealth Wednesday on YouTube at @CommonwealthFinancial.