# Why Is Systematic Investing Important? (1)

by **Tom Starke** and **Qian Zhu**

**What is systematic investing? Do we really need systematic investing to stay ahead of the game?**

This article discusses the complexities of the investment process and how human biases can lead to suboptimal investment decisions. A systematic investment process can overcome such biases and potentially produce better outcomes for investors. This article was originally presented to a group of high net-worth investors. A video of the presentation can be found **here**.

This is part 1 of the series, and I’m going to show you how behavioural human biases can lead to suboptimal investment decisions and how important it is to invest systematically.

# What is the optimal strategy?

Let’s start with a thought experiment: imagine you have a biased coin — one that has a 51% chance of getting heads and a 49% chance of getting tails. My question is: how much should you invest in each of the thousand coin tosses?

Now, in order to understand this, let’s just rationalise what we could do. Maybe we should invest 100% in each coin toss? Let’s say we have…