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DCA is often underestimated. You simply buy regularly with small amounts, don't worry about the price, trade less emotionally and simply get the average price over a longer period of time.
DCA is often underestimated. You simply buy regularly with small amounts, don't worry about the price, trade less emotionally and simply get the average price over a longer period of time.
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•@stefan_21 well, it would have been better if he had invested a lot at the beginning and only a little in the last 10 months. Then he would have made a lot more profit now ;-)
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@MrCumEx It's always easy to tell in hindsight - but you don't know where the price is going.
With DCA, you can be happy when the price rises, but also happy when the price falls, because then you get more shares. As I said, this takes the emotion out of it.
With DCA, you can be happy when the price rises, but also happy when the price falls, because then you get more shares. As I said, this takes the emotion out of it.
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•@stefan_21 Yes, but that's not how a Buffett does it, is it? He'll have a reason why he doesn't do it that way, right?
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@MrCumEx if you're not a fan of DCA and prefer market timing, that's fine too :)
In my experience, DCA is very often the better choice. Market timing often doesn't work and when prices collapse, you often make emotional decisions that have no place in the market. But of course that depends on the investor :)
In my experience, DCA is very often the better choice. Market timing often doesn't work and when prices collapse, you often make emotional decisions that have no place in the market. But of course that depends on the investor :)
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•@stefan_21 I have nerves of steel like Warren Buffett ;-) He does it very well IMO.
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Market timing is a completely different matter to DCA. As Stefan said, I didn't know that the price would go up when I invested at the beginning. Even if I was sure that the price would go up at some point, I still don't know WHEN.
@MrCumEx Buffett doesn't do any real market timing but buys when he thinks the price is favorable. But it's also not the case that he catches the best times. The difference is that he strictly stops buying when the price reaches a certain level.
@MrCumEx Buffett doesn't do any real market timing but buys when he thinks the price is favorable. But it's also not the case that he catches the best times. The difference is that he strictly stops buying when the price reaches a certain level.
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•@RealMichaelScott Yes, that's how I do it too...
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