QUOTE(Ramjade @ Oct 27 2022, 12:04 AM)
Actually if I never buy the deep. Wouldn't be up huge by now.
Doing DCA is not wrong, but doing it at the right time and the right trend is more important
I had been through 1997, 2000, 2008, and now 2022 and 2023 crisis, year 2000 is a plan-demic, it suppose to fall in 2019 at the peak but it prolongs
Let me share with you all and do your own calculation which is easier to make money, they are no wrong or right but it all depends how you look at it.
(to me, in this industry for so long, sometimes i treat DCA as a marketing scheme)
Doing cost averaging there is a formula to do it, I name it Effective cost averaging.
Many people know/don't know cost averaging is one of the most painful and expensive to do. Just because famous/ heard people say doing this is easy and effective just do it, and may have had experience doing it but had good experience/ good feel. But in matter of fact it actually the least return out of it why?
Just example 1
Start to buy a stock at USD300 bought 10 (USD3000) as a cost , draw down to 20% usd60 (240) buy another 10 (2400), down another 10% usd24(216) buy another 10(usd2160) = place in capital of usd7560.00 @ usd252 per share or possible keep doing DCA down and down, maybe price go up to usd260 per share you make your money, but very little.
The effective cost average formula is the initial cost price per share x unit= total capital
Current price x (unit "usually 3x time 5x of amount)= total amount required
Both capitals adds up and divide the unit.
if the price now is 216 for effective cost average usually ranges differently is 215.80 to 215.99 it will be the closest to the current price.
(The cost average only maximum do it 2 times, more than 2 will be very expensive to do it) (I had used it for the past 5 years not only for myself but for more than 200 people and others who guided in the industry)
At the moment still i don't do it for long term, but only short term.