What is the best investing strategy for beginners?

The simplest and most effective strategy for most people is regular, automatic investing in low-cost ETFs that track broad market indices. Buy consistently, hold for the long term, and let compounding do the work. There's no need for stock picking, market timing, or complicated strategies. This is what Steve at Buy Less Crap does personally — he invests in ETFs on Trading 212, InvestEngine, and Vanguard.

What ETFs does Steve invest in?

Steve invests in broad-market ETFs including S&P 500 trackers, FTSE All-World, FTSE 100, and dividend-focused ETFs. His approach is about consistent buying over time rather than trying to pick winners. He shares his actual buy activity weekly on the What I Bought This Week page. Remember: this is what he does with his own money — it's not a recommendation.

Should I invest a lump sum or invest monthly?

Both approaches can work. Historically, lump sum investing has outperformed drip-feeding about two-thirds of the time (because markets tend to go up over time). But regular monthly investing (pound cost averaging) can help smooth out market volatility and removes the emotional pressure of trying to time the market. Many people find monthly investing easier psychologically. The most important thing is starting, not the exact method.

Common-Sense Investing

My Investing Philosophy

This is my personal approach. It's what I do — not what you should do. I share it openly so you can see one person's thinking.

I prefer holding for the long term over chasing the next hot stock. That's just what suits me.

Trading 212 Pies

Why I Use Trading 212 Pies

One of the things I like about Trading 212 is something called a Pie.

A Pie is simply a collection of investments grouped together in percentages that you choose.

Think of it like building your own ETF.

For example, you could create a Pie containing:

~40% Global ETF

~30% S&P 500 ETF

~20% Dividend ETF

~10% Growth ETF

Then every time you invest money, Trading 212 automatically spreads it across your chosen investments.

No maths.

No stress.

No trying to remember what to buy next.

Just invest and let the Pie do the work.

Create Your Own or Copy A Successful Pie

You can either:

Create your own Pie

Build from scratch with exactly the allocations you want.

Explore existing Pie examples

Browse Pie examples shared by other investors to see how they structure their portfolios.

Of course, just because a Pie has performed well in the past doesn't mean it will perform well in the future, but it can be a great starting point for beginners.

Some people build:

Global ETF Pies

Dividend Income Pies

Growth Stock Pies

Technology & AI Pies

Defensive ETF Pies

I browse them for ideas, but what I include in my own Pie — and what you include in yours, if you use one at all — is an individual decision.

My Approach

I prefer simple ETF-based Pies rather than trying to pick lots of individual stocks.

Why?

Because one ETF can hold hundreds or even thousands of companies.

Broad diversification.

Less hassle.

Thousands of companies in one purchase.

My Rule

Buy less coffee.

Buy less crap.

Add a little more to your Pie.

Give it time.

A good Pie isn't the one that shot up 120% last year.

It's the one you'll still be adding to 10 years from now.

Remember, investing isn't about finding the perfect Pie.

It's about starting, staying invested and giving your money time to grow.

Buy Less Crap. Invest Simply.

Disclaimer: This is what I do personally and is not financial advice. Capital at risk. The value of investments can go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future results. Always do your own research before investing.

The Approach

Five things I try to do. Not a prescription.

Buy less coffee

Not literally — it's a metaphor. For me, it means noticing the small, forgettable purchases that add up. What I do with that awareness is my choice — and what you do is yours.

Buy less crap

The impulse purchases, the gadgets you forget about in a week, the stuff cluttering your home and draining your bank account. I try to notice the stuff I don't need — what you spend (or don't spend) your money on is entirely your call.

Buy ETFs regularly

I invest the same amount, same day, every month — automated and out of sight. Broad-market ETFs give instant diversification across hundreds or thousands of companies in one purchase. Whether this approach fits your circumstances is for you to decide.

Let compounding do the work

Returns generate more returns over time. Repeat for 20+ years. Compounding doesn't need your help — it just needs time. Though returns are not guaranteed and values can fall.

Enjoy life

Investing shouldn't mean living on rice and beans. Invest consistently, then go live your life. I stopped obsessively checking the ticker and it helped me stay calm during market wobbles.

Which is actually a far more realistic strategy than most of the nonsense pushed online.

The Formula

Invest. Wait. Repeat.

That's the approach I take. Broad-market ETFs, invested consistently over decades. Historically, the biggest factor in long-term outcomes has been consistency and time — though past patterns don't guarantee future results.

I chose a platform

I opened an account on a platform that suited me. There are several good options — pick whichever works for your own circumstances.

I picked a broad ETF

I went with a global or S&P 500 index fund. Low fees, broad diversification — the choice is yours to research.

I automated it

I set up a monthly contribution. Same amount, same day, every month. Automation removed emotion from the equation for me.

I got on with my life

I stopped checking the ticker all the time. I let compounding do its thing in the background — though returns aren't guaranteed and investments can fall.

Ready to put this philosophy into practice?

Learn how I invest — the ETFs, the strategy, the reasoning behind every move. Real portfolio, real thinking, no cherry-picking.

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