QUOTE(MedElite23 @ Feb 6 2021, 10:04 PM)
I do this. But only to a few targeted stocks that I have strong conviction in, and would like to start a position immediately (provided it’s not overvalued in my book), but do not want to time the market. One thing though, I do not pump into them endlessly. Instead, I allocate a fixed amount of money for that particular stock and DCA over 6 months or so depending on the price movement down the road. After that, I’ll wait to reap my harvest. The downside is, cheap can get cheaper haha
so you need to have the stomach to swallow the temporary paper loss.
Some people prefer to lump sum when the stock price is in consolidation phase. You may wanna try out different approach and see which method suits you better.
I have a few stocks that I have strong conviction in, and very much looking into DCA-into the stocks. For one, I don't have chuck load of money to go in lump sum. Secondly is because I am worried I am buying it at high price (which is a bit dumb, as I intend to keep it for a foreseeable future - but fear of losing gets the best of me).Some people prefer to lump sum when the stock price is in consolidation phase. You may wanna try out different approach and see which method suits you better.
I am not good in reading trends, so not sure if the market is in consolidation, bullish or what have you.
Maybe I'll see into your approach, setting a timeline for the DCA, stop, and wait it out for a foreseeable future. Thanks for the input!
Feb 6 2021, 10:52 PM

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