4 ms·
General consensus is to invest using dollar cost averaging so you don't rely on timing. Invest the same amount of money each pay cycle. If stock is expensive,
by cocoa19 5y ago
General consensus is to invest using dollar cost averaging so you don't rely on timing.
Invest the same amount of money each pay cycle. If stock is expensive, you'll be able to afford less stock, if stock is cheap, you'll afford more stock.
- jusssi 5y agoThe same principle can be applied for taking your money out. Instead of a single big cash-out, take $X per month.
- tyrust 5y agoIt's not exact that straight-forward. From Vanguard: > Our research indicates that it's prudent to invest a lump sum immediately. Article: https://investor.vanguard.com/investing/online-trading/invest-lump-sum https://investor.vanguard.com/investing/online-trading/inves... PDF: https://static.twentyoverten.com/5980d16bbfb1c93238ad9c24/rJpQmY8o7/Dollar-Cost-Averaging-Just-Means-Taking-Risk-Later-Vanguard.pdf&ved=2ahUKEwi-3cvykabwAhXhNX0KHeJ3CskQFjAAegQIBhAC&usg=AOvVaw1_IXF2JdrxbnGhqX28B0ce https://static.twentyoverten.com/5980d16bbfb1c93238ad9c24/rJ...
- deleted 5y ago[deleted]