Jul 17 2022, 02:06 PM
QUOTE(plumberly @ Jul 17 2022, 01:40 PM)
Heard about DCA in the early years when I was into unit trusts but did not practice it.
Mind sharing why you think DCA is the way to go? Maybe I overlooked something important. Thanks.
To me, it is a sales invention by the UT industry to generate sales (and thus commissions for the agents) every month. They don't have to do much and get monthly commissions. Good job. UT agents, please don't launch nuclear missiles at me. Read a few books where the authors are anti DCA.
Yes, I have seen graphs illustrating the positive gains from using DCA. It works in some cases. But I feel it is better to just stop buying, and save the money till you see a "confirmed" uptrend. Then you will get a lot more at a cheaper price. No one can predict where is the dip bottom. But with some study, it is possible to gauge with some certainty where it has turned for the better. A combination of moving average, Bollinger band, Coppock curve, RSI, etc., etc. Of course, nothing is 100% certain. If WW3 breaks out after the uptrend has started, 99% of the shares will head south.
My 2 cents (which is worth less now with increases in prices).
DCA is for passive investment which I like. I dont have the skills to check the market and know it is uptrending or not and etc.Mind sharing why you think DCA is the way to go? Maybe I overlooked something important. Thanks.
To me, it is a sales invention by the UT industry to generate sales (and thus commissions for the agents) every month. They don't have to do much and get monthly commissions. Good job. UT agents, please don't launch nuclear missiles at me. Read a few books where the authors are anti DCA.
Yes, I have seen graphs illustrating the positive gains from using DCA. It works in some cases. But I feel it is better to just stop buying, and save the money till you see a "confirmed" uptrend. Then you will get a lot more at a cheaper price. No one can predict where is the dip bottom. But with some study, it is possible to gauge with some certainty where it has turned for the better. A combination of moving average, Bollinger band, Coppock curve, RSI, etc., etc. Of course, nothing is 100% certain. If WW3 breaks out after the uptrend has started, 99% of the shares will head south.
My 2 cents (which is worth less now with increases in prices).
But in the long term, market as a whole will be uptrending is what i read about so with DCA to average it all out.
As in during the bears, we would buy more stocks as the price is lower and during the bull runs we would buy less as the price is higher. But the beauty of it is we can set the amount to dca, so if recession I would double down and bull keep it normal etc.
And I am DIY without any middle men.
If ww3 break out, stock market is the least of our problem..
This post has been edited by AthrunIJ: Jul 17 2022, 02:59 PM
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