QUOTE(dwRK @ Jun 22 2022, 06:51 AM)
DCA DCA DCA!!! 😆USA Stock Discussion v8, Brexit: What happens now?
USA Stock Discussion v8, Brexit: What happens now?
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Jun 22 2022, 08:52 AM
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Jun 22 2022, 08:55 AM
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#10542
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Jun 22 2022, 08:59 AM
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#10543
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11,569 posts Joined: Oct 2010 |
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Jun 22 2022, 09:07 AM
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Jun 22 2022, 09:32 AM
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Just a bear market rally, it will rip off soon
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Jun 22 2022, 10:06 AM
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#10546
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15,942 posts Joined: Jun 2008 |
QUOTE(dwRK @ Jun 21 2022, 11:02 PM) 3 letter acronyms are more common lah... etc, wtf, iou, otw, lol.... I ok with dca... professional sounding... much better than say, aml (add more losers)... but that one taken by anti-money laundering... The reluctance to admit one was wrong (either wrong decision - wrong stock selection, buying the right stock but at peak earnings or declining earnings etc etc etc etc) leads to the start of Averaging Down and IF LEFT UNCONTROLLED, this ultimately magnifies the losses to extreme proportions. Yup, the biggest risk in one's investment is the reluctance to admit one had screwed up. And they reckon Averaging Down coupled with a forgiving market will help them cover their losses. Seen it way too often. My 18 sen grossly inflated view. |
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Jun 22 2022, 10:57 AM
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110 posts Joined: May 2022 |
QUOTE(thkent91 @ Jun 21 2022, 05:04 PM) Mind enlighten me, what's wrong with DCA? Nothing wrong and depending on the securities you are holding. Get out or stop doing it when you know it's not right, i.e. would you still DCA PLTON/ARKK/TDOC knowing the tightening or covid theme has ended? Assuming you have rm100k, and earning 5k monthly and having free cash flow of 2k per month. It's okay to set Rm1k per month to DCA in fund or shares to ride the wave. The problem with DCA is having not enough of fund left to DCA when the market reaches the lowest point. But with proper planning and budgeting, it can be avoided. On the other hand, if it's index fund such as VOO/SPY, they could be a better choice considering the past 100 years performance. But you have to watch the macro environment where you might be averaging for 2 to 3 years and dont see any green in your portfolio, thus, the opportunity cost situation arises. Maybe your money is working harder by parking them at SOXL |
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Jun 22 2022, 11:39 AM
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5,114 posts Joined: Jun 2006 |
QUOTE(Boon3 @ Jun 22 2022, 10:06 AM) The reluctance to admit one was wrong (either wrong decision - wrong stock selection, buying the right stock but at peak earnings or declining earnings etc etc etc etc) leads to the start of Averaging Down and IF LEFT UNCONTROLLED, this ultimately magnifies the losses to extreme proportions. Yup, the biggest risk in one's investment is the reluctance to admit one had screwed up. And they reckon Averaging Down coupled with a forgiving market will help them cover their losses. Seen it way too often. My 18 sen grossly inflated view. if trader, capital preservation #1... manage drawdown risk, live to fight another day... but they mostly investor with steady job, 10-20 yrs longterm outlook, a few starting only this year, buy only 1-2 share at a time, buy liao what to do? admit wrong or stupid won't solve the problem... so if not cut loss, then dca is a viable option but do it smartly... i'm sure a lot are now waiting for market bottoming to dca... anyways...the market is a brutal teacher... |
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Jun 22 2022, 12:28 PM
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900 posts Joined: Feb 2016 |
QUOTE(danmooncake @ Jun 22 2022, 04:14 AM) I smell trap~. Nonetheless, last night I sold in-the-money (not deep) call option that expired next week. for me it's free money to grab.If assigned = i earn 100% premium (Losing the stocks) then i can DCA other stocks, If not = the premium will averaged down the option stock price. Win both way. This post has been edited by Lon3Rang3r00: Jun 22 2022, 12:28 PM Medufsaid liked this post
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Jun 22 2022, 12:36 PM
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#10550
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15,942 posts Joined: Jun 2008 |
QUOTE(dwRK @ Jun 22 2022, 11:39 AM) hindsight's a bitch mah... buy at the top liao what to do? i sure they know... cut loss is not investor's vocab, paper loss is not a loss until you sell... It does not matter if trader or investor. Make a mistake, do the right thing by keeping the mistake small and manageable. Admit to it. if trader, capital preservation #1... manage drawdown risk, live to fight another day... but they mostly investor with steady job, 10-20 yrs longterm outlook, a few starting only this year, buy only 1-2 share at a time, buy liao what to do? admit wrong or stupid won't solve the problem... so if not cut loss, then dca is a viable option but do it smartly... i'm sure a lot are now waiting for market bottoming to dca... anyways...the market is a brutal teacher... Some stocks, they just do not recover. For example, buy BAT in June 2015? The price then was 60++. Average down? How much money one got? BAT today? How much? Like I said, average down... can die one! |
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Jun 22 2022, 01:16 PM
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QUOTE(Boon3 @ Jun 22 2022, 12:36 PM) It does not matter if trader or investor. Make a mistake, do the right thing by keeping the mistake small and manageable. Admit to it. sure... i got a few since '97 never recover, some bankrupt... leftovers hold as remembrance lesson to never dca... Some stocks, they just do not recover. For example, buy BAT in June 2015? The price then was 60++. Average down? How much money one got? BAT today? How much? Like I said, average down... can die one! but you trying to force ppl confess their mistake a bit much lah... hahaha This post has been edited by dwRK: Jun 22 2022, 01:20 PM |
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Jun 22 2022, 01:25 PM
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4,526 posts Joined: Jan 2003 |
Not a mistake... but a lesson learn... QUOTE(Boon3 @ Jun 22 2022, 12:36 PM) It does not matter if trader or investor. Make a mistake, do the right thing by keeping the mistake small and manageable. Admit to it. Some stocks, they just do not recover. For example, buy BAT in June 2015? The price then was 60++. Average down? How much money one got? BAT today? How much? Like I said, average down... can die one! QUOTE(dwRK @ Jun 22 2022, 01:16 PM) Lon3Rang3r00 liked this post
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Jun 22 2022, 02:21 PM
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QUOTE(dwRK @ Jun 22 2022, 01:16 PM) sure... i got a few since '97 never recover, some bankrupt... leftovers hold as remembrance lesson to never dca... Eh? Never meant to force anyone. just saying it as it is. Anyway, isn't this one just a public forum, where is best to share our few sen hopefully learn a few sen more. but you trying to force ppl confess their mistake a bit much lah... hahaha |
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Jun 22 2022, 02:23 PM
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Jun 22 2022, 02:26 PM
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i'm just pulling legs ler on those who advocate DCA.... hehe... but you cannot deny...sometimes also you learn from losing...then only can win... those who wake up earlier instead of blindly doing DCA then consider lesson learn lo.... those who never wake up and continue to DCA into a losing stock or failing company...is not lesson learn lo.... QUOTE(Boon3 @ Jun 22 2022, 02:23 PM) Lon3Rang3r00 liked this post
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Jun 22 2022, 03:02 PM
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QUOTE(kevyeoh @ Jun 22 2022, 02:26 PM) i'm just pulling legs ler on those who advocate DCA.... hehe... It will always down to = Do your own research, don't blindly follow anything that a random/known person in the internet said and don't simply trust that Uncle or Friend of yours that are good at investing. At the end of the day, your money your responsibility. Don't later lose money and start to blame this and that. but you cannot deny...sometimes also you learn from losing...then only can win... those who wake up earlier instead of blindly doing DCA then consider lesson learn lo.... those who never wake up and continue to DCA into a losing stock or failing company...is not lesson learn lo.... |
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Jun 22 2022, 03:38 PM
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15,942 posts Joined: Jun 2008 |
QUOTE(kevyeoh @ Jun 22 2022, 02:26 PM) i'm just pulling legs ler on those who advocate DCA.... hehe... but you cannot deny...sometimes also you learn from losing...then only can win... those who wake up earlier instead of blindly doing DCA then consider lesson learn lo.... those who never wake up and continue to DCA into a losing stock or failing company...is not lesson learn lo.... and yeah... stocks are not like index funds. one cannot say, I buy X company and I shall DCA invest in it for 2 years. Every month I buy 1,000 shares. It just does not work this because unlike the index, individual company stocks differs greatly. Fundamentals of the company matters. Business economics of the said company matters. In 2 years stocks can easily go from boom to bust and don't recover. Good companies can run into deep problems. It happens. Haven't we seen it in the glory stocks of just recently? DCA them for 2 years? One could very well be digging the grave 24 times deeper. and sadly most don't ask the most logical questions.... why did the stock fall after I buy? is the market so nice to me that it gives me more and more discount? am I so lucky? or how about the most likely and most logical question: Did I fart up my stock selection so bad? Did I make a mistake? could this be a much better way than buta buta average down all the way? but yea... free discussion for learning and sharing purposes. This post has been edited by Boon3: Jun 22 2022, 03:39 PM sgh liked this post
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Jun 22 2022, 04:13 PM
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Jun 22 2022, 05:45 PM
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QUOTE(Boon3 @ Jun 22 2022, 03:38 PM) and yeah... stocks are not like index funds. one cannot say, I buy X company and I shall DCA invest in it for 2 years. Every month I buy 1,000 shares. It just does not work this because unlike the index, individual company stocks differs greatly. Fundamentals of the company matters. Business economics of the said company matters. In 2 years stocks can easily go from boom to bust and don't recover. Good companies can run into deep problems. It happens. Haven't we seen it in the glory stocks of just recently? DCA them for 2 years? One could very well be digging the grave 24 times deeper. and sadly most don't ask the most logical questions.... Some investors say still can go for individual stock but go for big market cap stock like GOOGL, AAPL, AMZN, MSFT etc chance of them bankrupt is rare. Well in general that is true but no guarantee always. Remember Lehman Brothers, Arthur Anderson ? Big but still can collapse. |
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Jun 22 2022, 06:45 PM
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171 posts Joined: Nov 2015 |
QUOTE(sgh @ Jun 22 2022, 05:45 PM) Some other readers in this forum mention above and I agree. Individual stock vs a basket of stocks in a ETF has different characteristics. The risk with individual stock is so much higher. But with higher risk come with higher returns and losses. So for each investor need to understand each strategy, DCA into a losing stock can be a bottomless pit. As for ETF while it is same the risk is lesser as it has many stocks inside the ETF. However the recent KWEB inform investor if ALL stocks in the ETF all fall then this ETF is same as individual stock sinking. But since ETF it seems KWEB for e.g is slowly climbing up. This may not be the same for individual stock as it can continue to sink until get delisted? Just to inquire, aside from Covid and supply chain issues, KWEB ETF price drop was mainly also due to China regulatory actions, was it not? I've just started noticing KWEB after seeing it being mentioned here several times.Some investors say still can go for individual stock but go for big market cap stock like GOOGL, AAPL, AMZN, MSFT etc chance of them bankrupt is rare. Well in general that is true but no guarantee always. Remember Lehman Brothers, Arthur Anderson ? Big but still can collapse. |
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