Investing term
What is Do-nothing rule?
An explicit commitment to NOT trade in response to specific common triggers (single headlines, short-term volatility, peer envy).
A do-nothing rule is an explicit promise not to trade in response to certain triggers — a scary headline, a sharp dip, or envy of someone else's hot pick. It works by deciding in advance that these moments don't warrant action, so when they arrive you've already made the call. For most long-term investors, inaction is the hardest and most profitable skill.
For example
"I will not sell because of a single bad news day" is a do-nothing rule — pre-committing to ignore the exact impulses that wreck returns.
Do-nothing rule is taught hands-on in Stage 20 — The Investor's Playbook.
See the lesson →