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Yup. And with DCA, a skittish investor has something they can point to when buying stocks in all market conditions. Instead of “oh, I should wait for the dip”
by function_seven 3y ago
Yup. And with DCA, a skittish investor has something they can point to when buying stocks in all market conditions.
Instead of “oh, I should wait for the dip” you can view your automatic purchases as “buying fewer shares because they’re expensive”.
Instead of “oh, the market’s crashing. I should wait for the bottom,” you can think, “I’ll just be buying more shares the cheaper they become”
It’s not a strategy per se, but more of a reasoning to stay the course and make your static monthly contribution.