Well, it is better to DCA if it helps remove the 'buyer's remorse'
Meaning let's say you want to buy Maybank.

Example:

Maybank is RM10 per share today.

Situation I: You want to buy 1,000 of Maybank in a single transaction to save RM80 fees.

Situation II: You choose to DCA across 2 days. Today and tomorrow. It cost you additional RM80 in trading cost.

Tomorrow turns out Maybank price is RM9.50 per share.

Total cost incurred (Situation I): 1,000 x RM10 = RM10,000
Total cost incurred (Situation II): 500 x RM10 + 500 x RM9.50 + RM80 = RM9,830

Difference is RM170.

Do note that it can work the other way. Meaning you lose potential gains by DCA. So, DCA only if it helps you sleep at night to remove the 'buyer's remorse' feeling.

This post has been edited by Yggdrasil: Sep 20 2019, 08:45 PM

Splitting your trade into 2 is not DCA to me.

DCA is buying regularly fixed amount at regular intervals over a long period of time. Eg buying RM1k worth of Maybank share monthly.

You don't get my point. I'm just showing an example.

Sometimes one lump sum can be dangerous especially when you mistime your point of entry.

For example, my recent regret not to DCA was few months ago. I had RM15,000 and wanted to invest in Takaful. I bought immediately after their excellent quarterly results at RM6.75. I entered whole lump sum of RM15,000.

Few days later, Takaful dropped to RM6.00. Turns out EPF was working with a competitor "FWD Takaful".

The loss is greater than the transaction fees saved. In conclusion, strike a balance between DCA and your savings in transaction fee. To be honest, people who whine about transaction fees should stick to f.ds. Trying to save a few RM10 is on transaction fees is stupid when you can easily lose a few RM100s.

Additional information that maybe interesting:

There's a research done by Vanguard that shows one lump sum investment into an index is better than DCA across 12+ months.

However, do note that their research is based on an index. A stock is more volatile and you might want to DCA your way in.

u mean like average down when the price is retrace right..

with low interest rate, and further interest rate cut, does it help the property market in m'sia?

I've some property stocks....

BNM only cut 0.25%. I don't think that will make much difference on buyers. N no confirmation yet of any further cuts in near future.

Better wait to see if there are any goodies at Budget 2020.

This sector also start to come into my radar, as valuations are quiet low. At the moment, my take is still not yet. Wait for further catalyst. .

This post has been edited by Cubalagi: Sep 23 2019, 04:43 PM

Bursa Malaysia website down? I can’t access yesterday and today

Layhong good buy??? Buy and hold strategy.

Is there any alternative to Stock.cafe?

I want to track my portfolio return ....

WGBI
Malaysia still remain in the index but we put into watch list to monitoring closely

M1 finance allows the user to choose the ETF.

Is there any Robo-adviser that allows us to choose the ETF?

U be the robot la.. U can choose..😆

Im looking at MFLOUR via KenTrade:
The commentary says what does "RSI is also showing an overbought condition which indicates some retracement may take place...."
By retracement, do they mean the price may go down ..which I don't get as being overbought, shouldnt price go up?

Can some sifus enlighten me plz,
Kamsahamida

Overbought here means the RSI is saying price has gone up too rapidly in a short period of time, so be careful to enter as there is potential to fall.

Having said that, prices can be overbought or oversold for extended periods before they "retrace".

ah ok...thanks Cubalagi

Bursa (1818) profits dropped 26.5%

https://www.malaymail.com/news/money/2019/1...e-in-q3/1804886

Malaysian brokers must be really suffering..

Hi All,

im currently exploring other options for trading platform (apart from my current Maybank direct CDS) which is abit pricey in terms of brokerage fee.

Im seeing Hong Leong or CIMB per say, any thoughts on this?

Thank you.

how much is maybank brokerage?

if not mistaken, 0.1% of transaction fee or RM 12 minimum

Are u looking at cash upfront or collateralized trading account?

That's not too bad. CGS Cimb charges the same for cash upfront online trading.

I noticed quite a number of brokers are charging 0.1% for cash upfront online trading account. The diffrenciator for cash upfront online will then be minimum brokerage.

This post has been edited by Cubalagi: Nov 13 2019, 01:00 PM