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I'm adding no assumptions, and my view is math. The only thing we know is that we're choosing an asset which we believe will trend upwards. Over the relativel
by DelaneyM 4y ago
I'm adding no assumptions, and my view is math.
The only thing we know is that we're choosing an asset which we believe will trend upwards.
Over the relatively short period of DCA, it will trend upwards.
If you're saying you know that the rising trend won't begin until a future date, then that's an assumption you're adding, and it probably indicates you should wait until the rising trend begins until increasing.
- Nursie 4y ago> Over the relatively short period of DCA, it will trend upwards. But this is an assumption! > If you're saying you know that the rising trend won't begin until a future date, then that's an assumption you're adding I'm saying I have no idea what's going to happen during the DCA period. I think at this point its safe to say your view that DCA doesn't work to denoise a signal is predicated on assumptions about what the price trend is doing over the DCA timescale. If the stock is trending up over that period, then you're likely better off buying now regardless of local fluctuation. OK!