THE JOHN BALDING FREE INVESTING PLAN
A simple framework to help you understand investing across stocks, commodities and cryptocurrency.
Introduction
This isn't financial advice.
It's the framework I've developed over more than 13 years of following financial markets. Everyone's goals, circumstances and tolerance for risk are different, so use this as a starting point for your own learning rather than a set of rules.
Markets reward patience, discipline and curiosity far more often than they reward chasing the latest trend
Step 1 – Start with Yourself
Before buying a single investment, ask yourself:
Why am I investing?
Am I building wealth over decades or looking for short-term gains?
How much risk can I realistically handle?
Could I sleep at night if my investments fell by 30%?
Understanding yourself is often more important than understanding the market.
Step 2 – Build an Emergency Fund
Before you start investing:
set aside readily available cash to cover unexpected expenses and short-term financial shocks. Establishing a solid emergency fund reduces stress around investing and gives you breathing room, so you won’t be forced to liquidate investments at the worst possible moment when life throws an expensive surprise your way.
Step 3 – Understand the Markets.
Before you invest, it's important to understand that not all markets work the same way. Every type of investment has its own characteristics, risks, and opportunities, which is why successful investors learn how each market behaves instead of treating them all the same. Building knowledge is one of the best investments you can make.
📈 Stocks
Stocks represent ownership in a company. When you buy shares in businesses like Apple, Microsoft, or Nvidia, you're purchasing a small piece of that company. As the business grows and becomes more valuable, the price of its shares can increase over time.
Many stock investors focus on long-term growth, company performance, earnings, and innovation. In traditional stock markets, daily price movements are often relatively modest, and even a gain of just a few percent on a trade can be considered an excellent result. Patience and consistency are often rewarded.
₿ Cryptocurrency
Cryptocurrencies are digital assets built using blockchain technology. Popular examples include Bitcoin and Ethereum. This market has grown rapidly and continues to attract investors because of its innovation and long-term potential.
Cryptocurrency is also known for its higher volatility. While stock traders may be pleased with gains of a few percent, it's not unusual for cryptocurrencies to experience price swings of 20%, 30%, or even 50% over relatively short periods. These larger movements can create greater opportunities but also require greater discipline, patience, and risk management.
Let me say In my opinion none of these markets is better than another, they simply behave differently. Understanding how each market works allows you to make smarter decisions and build a diversified investment portfolio that matches your goals, experience, and risk tolerance. Learning first and investing with a clear plan will always give you a stronger foundation for long-term success.
🪙 Commodities
Commodities are physical, real-world assets such as gold, silver, oil, and natural gas. Unlike stocks, you're not investing in a company, you're investing in the value of a resource.
Commodity prices are influenced by global supply and demand, weather conditions, geopolitical events, and economic trends. Because they react to different factors than company shares, commodities can help add diversification to an investment portfolio and may perform differently during changing market conditions.
Step 4 – Diversification
One of the most important principles of investing is diversification. Instead of putting all of your money into one investment, you spread it across different types of assets. This helps reduce risk because different investments often perform differently at different times.
A simple way to think about it is the saying, "Don't put all your eggs in one basket." If one investment isn't performing well, others in your portfolio may help balance things out.
Example of a Diversified Portfolio
40% Stocks
Investing in well-established companies like Apple, Microsoft, or Nvidia can offer meaningful long-term growth potential by backing proven, successful businesses with strong track records and durable competitive advantages.
30% ETFs
Exchange-Traded Funds (ETFs) allow you to invest in a collection of companies or assets with a single investment.
This can provide instant diversification and reduce the need to pick individual stocks.
20% Cryptocurrency
Bitcoin and Ethereum have strong long-term potential but tend to show higher volatility than traditional assets. Allocating a small, disciplined portion of your portfolio to them lets you gain meaningful exposure to crypto’s upside while helping to limit overall portfolio risk.
10% Cash
Holding some cash gives you flexibility. It can provide peace of mind, help cover unexpected expenses, and allow you to take advantage of new investment opportunities when they arise.
Example only – this is not a recommendation or financial advice.
Why Diversification Matters
No investment rises all the time, and no market performs the best every single year. Stocks, ETFs, cryptocurrencies, commodities, and cash all react differently to economic conditions and market events. By spreading your investments across multiple asset types, you avoid relying on the success of just one.
Diversification isn't about trying to eliminate risk completely, every investment carries some level of risk. Instead, it's about managing that risk more effectively while creating opportunities for long-term growth.
Successful investors don't try to predict which market will perform best next. They build balanced portfolios that can adapt to changing market conditions. Over time, diversification can help make your investment journey more consistent, reduce emotional decision making, and give you greater confidence in working towards your financial goals.
Step 5 – Learn Before You Invest
The greatest investment you'll ever make isn't in a stock, a cryptocurrency, or a commodity it's in your own knowledge. One of the biggest misconceptions is that successful investors simply get lucky. In reality, the vast majority of long-term investors spend years learning how markets work before they ever commit serious amounts of money. Knowledge builds confidence, and confidence helps you make better decisions when markets inevitably move up and down.
Personally, I spent years studying and learning before I ever felt confident enough to talk publicly about the financial markets. I read books, analysed charts, listened to experienced investors, followed economic news, and constantly asked questions. Even today, I still learn something new every week because the markets are always evolving. The moment you think you know everything is often the moment you stop improving.
The good news is that you don't need a finance degree to become a successful investor. You simply need curiosity, patience, and the willingness to keep learning.
Some of the best ways to build your knowledge include:
Books – Learn timeless investing principles from experienced investors who have successfully navigated different market cycles.
Podcasts – Listen to industry experts discuss current events, investing strategies, and market psychology.
Annual Reports – Discover how successful companies make money, grow their businesses, and plan for the future.
Charts – Study price movements to understand trends, market behaviour, and how investors react to news.
Economic News – Keep up to date with interest rates, inflation, employment figures, and global events that can influence markets.
Questions – Never be afraid to ask questions. Every experienced investor was once a complete beginner.
One of the biggest mistakes new investors make is investing because someone on social media told them to buy something. Instead, aim to understand why you're investing. When you understand the reasons behind your decisions, you're far more likely to stay calm during market fluctuations and avoid making emotional choices.
Remember, investing isn't a race. There will always be another opportunity. Taking the time to learn before you invest can help you build confidence, reduce costly mistakes, and create a strong foundation for long-term financial success. The more you learn, the better equipped you'll be to make informed decisions and invest with purpose rather than emotion.
Step 6 – Ignore the Noise
One of the biggest challenges in investing isn't understanding the markets—it's learning to ignore the constant noise around them. Every day, social media is filled with bold predictions, "can't miss" opportunities, and opinions from people claiming to know exactly what will happen next. This can lead to emotional decisions driven by fear, greed, FOMO (Fear of Missing Out), or panic selling when markets fall.
The truth is that no one can predict the markets with complete accuracy. One of the biggest lessons I've learned is that markets often reward patience more than prediction. Successful investors focus on their long-term plan instead of reacting to every headline or social media post.
Stay focused on your goals, continue learning, and remember why you invested in the first place. By controlling your emotions instead of letting them control you, you'll give yourself a much better chance of making smarter investment decisions over the long term.
Step 7 – Think Long Term
One of the most valuable habits you can develop as an investor is thinking long term. It's easy to become distracted by daily market movements, breaking news, and short-term price changes, but successful investing is rarely about what happens this week or even this month.
Markets move every day, but life moves over decades. Wealth is often built through consistency, patience, and allowing your investments time to grow. While there will always be periods of uncertainty, history has shown that markets have rewarded disciplined investors who stay focused on their long-term goals.
The goal isn't to win every week or perfectly time every trade. It's to become a better investor every year by continuing to learn, making informed decisions, and staying committed to your plan.
Focus on progress rather than perfection. The knowledge, discipline, and habits you build today can have a lasting impact on your financial future. Investing is a marathon, not a sprint, and your greatest advantage is time.
My Investing Philosophy
If you've made it this far, you've already taken one of the most important steps on your investing journey you've chosen to learn before you invest.
Throughout this guide we've explored the foundations of investing, from understanding the differences between stocks, commodities, and cryptocurrencies, to the importance of diversification, managing emotions, and thinking long term. My hope is that you now feel more confident and, more importantly, more curious about the opportunities that investing can offer.
One thing I've learned over the years is that I don't believe investing should take over your life.
I believe it should support the life you want to build.
Whether you're investing in stocks, commodities like gold or oil, or digital assets such as Bitcoin and Ethereum, every market offers opportunities to those who are prepared, patient, and willing to keep learning. No single investment is perfect, and no market is always the best performer. That's why education will always be more valuable than chasing the latest trend.
For me, the financial markets have provided endless opportunities to grow not just financially, but personally. They've taught me patience when things didn't go my way, discipline when emotions tried to take over, and humility because the markets have a way of reminding everyone that there's always something new to learn.
Success isn't simply measured by the size of your portfolio or how many winning investments you've made.
True success is creating the freedom to spend more time doing what matters most. Whether that's travelling, providing for your family, starting a business, helping others, or simply enjoying more choices in life, investing should be a tool that helps you reach those goals not the goal itself.
Markets have shaped my career. My family has shaped my life.
If there's one message I'd like you to remember after reading this guide, it's this: Don't compare your Chapter 1 with someone else's Chapter 20. Every successful investor started as a beginner. They made mistakes, asked questions, continued learning, and improved one decision at a time. Your journey will be unique, and that's exactly how it should be.
Take your time.
Stay curious.
Keep learning.
Thank you for taking the time to read this guide. I genuinely hope it helps you build the confidence to make informed investment decisions and create a future that gives you more freedom, more opportunities, and more control over your financial life.
And remember…
Do Big Things Or Do Nothing At All.