Start in 2026 by building the base first: 6-12 months of cash, no expensive debt, max out 401(k)s and IRAs, then DCA only half of new investable cash into stocks while keeping the other half in treasuries or a money market as dry powder. Put 50% of the portfolio in the S&P 500 and the rest in no more than 10 individual stocks chosen for management, margins, revenue growth, debt, and cash; buy more when a holding or index is 20%+ below its 1-year high and revert when it recovers. Avoid leverage and margin, because brokers can force sales; buy only businesses meant to be held 5, 10, 15 years, not trades. The argument against waiting is blunt: sitting in cash is riskier over 20 years, with cash projected to lose 45% of purchasing power, the S&P 500 projected to 5x, and missing the top 10 market days over 20 years cutting returns in half.
A 2026 starter should wait a couple of weeks before buying any stock and first get the foundation right, using past experience from 6 years in stocks like PLTR.
Emergency cash should cover 6-12 months because a job loss plus a 2022-style dip can force stock sales at 40 cents on the dollar just to pay rent.
Expensive debt should be eliminated before investing a single dollar, because its cost wipes out investing gains.
Tax-advantaged accounts should be maxed first, including 401(k)s and IRAs or the equivalent in the investor’s country, framed as government "free money."
If $1,000 a month is available, only 50% — $500 — should go into stocks and the other 50% should stay in reserve.
That $500 monthly stock buy should continue every month regardless of market direction: DCA.
The reserve should sit in treasuries or a money market account earning minimal interest.
If a stock or index falls 20%+ from its highest point in the past year, the monthly buy should be increased from reserve cash, such as $500 plus $500 plus $500 for a $1,500 month instead of $500.
When the name is no longer 20% down — e.g. 79 turning to 81, 82, or 83 after a $100 high — the plan should revert to the normal $500 monthly buy.
The point of buying more on declines and less on rallies is to push cost basis toward the bottom over years without timing the market.
Timing the market is called stupid, gambling, and a no-win game; DCA plus dip-buying only works if the business is good and will not save a horrible stock.
The portfolio should hold companies meant to be owned for 5, 10, or 15 years, not trades meant to create a salary or "insane money" quickly.
Trading against daily pros is framed as losing because they have more money, information, resources, and experience; buy-and-hold removes that edge if the companies are good.
The maximum number of individual stocks should be 10, because more than that is unrealistic to track properly.
Half of the portfolio should be in the S&P 500 via a broad ETF tied to the US economy, described as "literally undefeated."
The claim is that research shows the S&P 500 is impossible to beat over 10, 15, or 20 years and should average about 10% per year over those horizons.
The other half should go into up to 10 individual stocks selected by management quality, margins, revenue growth, debt, and cash.
The academy at tradingnut.com/tom nash is presented as a place to learn stock evaluation and decide independently, and it does not give stock picks.
Buy/sell alerts are called a scam because the goal is to teach investing skills so people can decide for themselves.
Leverage should be avoided: borrowing from a brokerage gives the broker control, can trigger a margin call, and can force a sale after a drop even if the investor wants to hold.
Portfolio risk should fit age: at 25 with 40-50 years ahead, risk can be much higher; at 55, the stance should be more careful and more cautious.
Older investors wanting upside still need to protect assets with more bonds and slightly less tech and AI exposure.
People saying 2026 is a bad time to start because the market is expensive are rejected; sitting on the sideline is described as more expensive than investing.
Over the next 20 years, cash is projected to lose 45% of purchasing power, with inflation taking money to 50 cents on the dollar.
Holding the S&P 500 for 20 years with no stock picks is projected to 5x money.
Missing the top 10 days in the stock market over the past 20 years is said to cut returns in half.