4 ms·

I've been dollar cost average buying for a few days now. Not too much, a few tens of thousands of dollars a day. Please carry on with the panic, everyone.

by m0zg 7y ago

FreedomToCreate 7y ago
For context, you are being downvoted for being smug and not adding anything to this conversation.
- qqssccfftt 7y ago
  That's literally all of this website
  - ForHackernews 7y ago
    For context, you are being downvoted for saying the quiet part loudly.
  - dang_ur_dumb 7y ago
    The most truthful comment of all time.
ForHackernews 7y ago
Congratulations on being rich and somehow dumb enough to think you can time the market while also believing that dollar cost averaging is a good strategy. If you are so sure you know where the bottoms are, just buy them. Don't waste your time with DCA.
- dylan604 7y ago
  I don't know why you call it dumb. This is what happens in every down turn. The people with money take advantage and increase their possessions while the people without money lose theirs. The rich get richer. The more severe the down turn, the more drastic the swing.
  - ForHackernews 7y ago
    Historically, DCA is a dumb strategy: https://business.time.com/2012/11/15/is-dollar-cost-averaging-dumb/ https://business.time.com/2012/11/15/is-dollar-cost-averagin... Instead of having all these tens of thousands of dollars sitting around, he should have invested them years ago. Some people think they're clever by waiting to "buy the dip"; others think they're being clever by "spreading out the risk" (with DCA). They're both silly attempts at market-timing. Our OP commenter is a unique doofus who has come to HN to brag about combining two different (& contradictory) losing investment strategies.
    - m0zg 7y ago
      ^ found a guy I've been buying from.
    - bluGill 7y ago
      Dollar cost averaging works for me because I didn't have those dollars sitting around last year. Like most people my main source of investment funds is my 401k contribution which is divided up over the course of the year. I suppose in theory I should have figured out the entirety of my 401k contributions from the time I start my first job until I retire, take out a loan for that amount and invest it, then when I retire pay the loan off. The numbers work out on paper, but nobody would give me such a loan so in practice it doesn't work even if the tax advantages would be allowed for such a scheme.
      - deleted 7y ago
        [deleted]
    - saltyfamiliar 7y ago
      Did you even read the article you linked to? Of course dollar cost averaging doesn't work when the market is only going up, but that's not what's happening right now. The one third of the time when DCA works is when the market experiences a wild swing in price and then returns back to where it started, which means that unless you actually expect the US economy to collapse and remain in a collapsed state for the rest of your life, dollar cost averaging is the strategy to employ in this situation.
- egdod 7y ago
  DCA is an acknowledgment that you don’t know where the bottom is.
- turc1656 7y ago
  OP said nothing about timing the market. As you mentioned, that's the entire opposite of DCA. I take your interpretation to be a bit disingenuous and lacking in good faith. OPs point is clearly that the panic selling is not rational and they are acting accordingly. Whether or not that's correct remains to be seen, however.
  - m0zg 7y ago
    It pays to remember that when one sells their shares, there is someone else who's buying at the other end of that trade. Right now that someone is me. 20+% discount sounds pretty awesome even if it's not "the bottom". I typically buy and hold, and not worry too much about turbulence, since I'm not on margin.
    - deleted 7y ago
      [deleted]
  - deleted 7y ago
    [deleted]
- dang 7y ago
  Please don't break the site guidelines regardless of how bad another comment is. Also, please don't feed egregious comments by replying. That's also in the guidelines: https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html Personal attacks will get you banned in particular, so please don't do those.
awinder 7y ago
I think you need way more than a few days to be talking about dollar cost averaging lol
Brain_Thief 7y ago
This is hands-down the most cringeworthy comment I've ever seen on HN.
dang 7y ago
If you keep posting flamebait to HN we're going to ban you. I've lost count of how many warnings we've already given. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html

I've been dollar cost average buying for a few days now. Not too much, a few tens of thousands of dollars a day. Please carry on with the panic, everyone.

by m0zg 7y ago

I've been dollar cost average buying for a few days now. Not too much, a few tens of thousands of dollars a day. Please carry on with the panic, everyone.

FreedomToCreate 7y ago

For context, you are being downvoted for being smug and not adding anything to this conversation.

qqssccfftt 7y ago
That's literally all of this website
- ForHackernews 7y ago
  For context, you are being downvoted for saying the quiet part loudly.
- dang_ur_dumb 7y ago
  The most truthful comment of all time.

ForHackernews 7y ago

Congratulations on being rich and somehow dumb enough to think you can time the market while also believing that dollar cost averaging is a good strategy. If you are so sure you know where the bottoms are, just buy them. Don't waste your time with DCA.

dylan604 7y ago
I don't know why you call it dumb. This is what happens in every down turn. The people with money take advantage and increase their possessions while the people without money lose theirs. The rich get richer. The more severe the down turn, the more drastic the swing.
- ForHackernews 7y ago
  Historically, DCA is a dumb strategy: https://business.time.com/2012/11/15/is-dollar-cost-averaging-dumb/ https://business.time.com/2012/11/15/is-dollar-cost-averagin... Instead of having all these tens of thousands of dollars sitting around, he should have invested them years ago. Some people think they're clever by waiting to "buy the dip"; others think they're being clever by "spreading out the risk" (with DCA). They're both silly attempts at market-timing. Our OP commenter is a unique doofus who has come to HN to brag about combining two different (& contradictory) losing investment strategies.
  - m0zg 7y ago
    ^ found a guy I've been buying from.
  - bluGill 7y ago
    Dollar cost averaging works for me because I didn't have those dollars sitting around last year. Like most people my main source of investment funds is my 401k contribution which is divided up over the course of the year. I suppose in theory I should have figured out the entirety of my 401k contributions from the time I start my first job until I retire, take out a loan for that amount and invest it, then when I retire pay the loan off. The numbers work out on paper, but nobody would give me such a loan so in practice it doesn't work even if the tax advantages would be allowed for such a scheme.
    - deleted 7y ago
      [deleted]
  - saltyfamiliar 7y ago
    Did you even read the article you linked to? Of course dollar cost averaging doesn't work when the market is only going up, but that's not what's happening right now. The one third of the time when DCA works is when the market experiences a wild swing in price and then returns back to where it started, which means that unless you actually expect the US economy to collapse and remain in a collapsed state for the rest of your life, dollar cost averaging is the strategy to employ in this situation.
egdod 7y ago
DCA is an acknowledgment that you don’t know where the bottom is.
turc1656 7y ago
OP said nothing about timing the market. As you mentioned, that's the entire opposite of DCA. I take your interpretation to be a bit disingenuous and lacking in good faith. OPs point is clearly that the panic selling is not rational and they are acting accordingly. Whether or not that's correct remains to be seen, however.
- m0zg 7y ago
  It pays to remember that when one sells their shares, there is someone else who's buying at the other end of that trade. Right now that someone is me. 20+% discount sounds pretty awesome even if it's not "the bottom". I typically buy and hold, and not worry too much about turbulence, since I'm not on margin.
  - deleted 7y ago
    [deleted]
- deleted 7y ago
  [deleted]
dang 7y ago
Please don't break the site guidelines regardless of how bad another comment is. Also, please don't feed egregious comments by replying. That's also in the guidelines: https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html Personal attacks will get you banned in particular, so please don't do those.

awinder 7y ago

I think you need way more than a few days to be talking about dollar cost averaging lol

Brain_Thief 7y ago

This is hands-down the most cringeworthy comment I've ever seen on HN.

dang 7y ago

If you keep posting flamebait to HN we're going to ban you. I've lost count of how many warnings we've already given. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html