Hi Ziet, Your materials are great! I found out that they're clear and very easy to understand. Simple and clear English. Yet I also realized that - you accentuate your points with the wordings on the screen. So when a viewer combines, 1. Watching 2. Listening 3. Viewing (Wording/Scripts) Viewer really get what you're delivering.😃
Thank you so much Chun Keat! I try my best to, both during scripting, filming and editing to make sure everything is aligned and makes sense to viewers from all sorts of background! I watched them again and again to make sure it is straightforward and easy to understand - im genuinely happy to receive your kind feedback! Do let me know moving forward with my future videos! Thank you!!
"There seem to be some perverse human characteristics that likes to make easy things difficult" Warren Buffett Fantastic video again as it illustrates and enforce the keeping it simple philosophy and why it stood the test of time.
Woah love that plug, I should have known that earlier and put it into the video haha! Thank you for the kind words, glad the video lived up to your expectation!😊🙇🏻♂️
This video is gold. I started investing in July 2020, invested into Dpharma, watch a lot of videos about investing. And earned almost 100%. Same as you, i got cocky and burnt my hands. Now am looking at dca-ing
It's totally alright, we all make the mistakes but I guess it's all part and parcel of the stock market - what doesn't kill you makes you stronger! Hopefully we will grow from our mistakes and be a better investor for the time to come!
Hi Ziet, you're videos are very well articulated and responsible. It helps a lot for beginners to understand the basics and I see your comments are even detailed and very helpful. Thanks a lot for your hard work and all the advices. Keep it up bro 👍
Thank you so much Franco, I try my best to be share informative content backed by facts and results that I can obtain to the best of my ability! Have a blessed Christmas!
The result definitely surprised me as well! I've always a "meh" towards DCA but after going through this experiment, it feels so much more convincing to just invest and not try to time the market!
I used to join employee purchase plan and had some portion of my salary invest in the company stock. By the end of my tenure, I think I break even or even have small earn, just by DCA every month into the company I am working with. I can speak that this strategy works.
Thank you so much for this, I've also been really skeptical about this strategy but after laying out the numbers and seeing it for myself, it just opens up my perspective towards it! I'm definitely more confident and convicted to just invest consistently without trying too hard to time the market (frees up mental capacity too!)!
@@ZietInvests I should mention a caveat. In my case, I am investing in AIA HK. It’s a no brainer, I was working for them, I saw the opportunity, the business; if I am staying for long, the share will appreciate. DCA a good and reputable business is important. I can’t say for sure for other company
I learned from other article. Dollar value averaging usually works better than cost averaging because value averaging results in less money being invested as the stock price goes up, whereas with cost averaging you continue to invest the same number of dollars regardless of the share price.
You're correct. Dollar-cost averaging invests a fixed amount regularly, while value averaging adjusts investment amounts based on performance, potentially resulting in less money invested as prices rise. Each method has pros and cons, and the better strategy depends on various factors including one's investment goals and risk tolerance!
Thanks so much for the hard work Ziet! Really enjoyed the video especially the comparison part! Gonna stop being a donkey after watching this video haha! XD
Haha we all are donkeys when we started (im not excluded as well haha). Though with every mistakes made, I personally appreciate my decisions and learn to be more thoughtful next time! Thank you for watching!!
Great video again. Simple and to the point. Sorry for the lengthy question.......... when u say buy in 3 split (say 2000, 2000, 2000). You mentioned follow up buy when -10% pr -15%. Is that -10% from your original buy price or say after 2month the price had gone up and then there was a dip (but price still higher than your original buy price)?
Hi Amerik, great question there! My follow-up buys are usually -10/15% from my initial buy. For example, I bought TSLA at 1000 USD. If it dips to around 900 USD, I will put my follow up buy. If it doesn't dip to 900 USD and gone up around 1200 USD but dropped another 10% from there, say down to around 1050 USD (as the situation you described), then I would preferably buy when they settle at a support line, say trading sideways for 1050 USD for 3 to 4 weeks. The reasoning for 3 to 4 weeks is because that's usually the time it takes for my monthly income to build up a sizeable amount for investing. This only applies to my personal preference with TSLA, other stocks/asset may differ so do keep in mind this is not a 1-trick pony yea! I try not to average up at All-Time-Highs unless necessary or I have enough cash on hand.
Hi Ziet! You have insightful videos. Noobies like myself truly appreciate your knowledge sharing. 🙏 For your DCA, what would be your advice for exit strategy? How long do you usually hold them? Thanks
Hi Jay! Ill probably do it like this, for: 1. Selling for money? To cash out for any huge purchase: house reno, car, for kids etc 2. Sell when company fundamentals changed 3. Sell to go into capital preservation mode
Hi Sagar, thank you for your nice comment. Re your question, no, there is no minimum number of stocks one should own. The general rule of thumb is, the more you diversify, the lower the risk you're getting, but that also means the lower reward you are going for. High risk high reward, lower risk lower reward, no right or wrong, it all depends on your current financial situation, expected investment horizon and risk appetite - adjust accordingly! Can check out this video for more detailed explanation: th-cam.com/video/Gk1z88NWvIk/w-d-xo.html
Great stuff here again! Just wanted to ask , does it mean I need to gradually increase the amount of money I DCA on index funds? When do you think is the right time to increase $ investment for DCA ? Since a good index fund like VOO will gradually increase in share price. Say my DCA of $200 investment per quarter might not be enough to buy 1 share years down the line.
Hi Casey, amount is never the issue here, the gist to DCA is to "not time" the market, hence investing/buying in consistently is the key to that. My personal preference is to follow the 3 rules mentioned in this video, buy on support line, or when I have a comfortable cash cushion such that I can have a follow-up buy if market goes bearish. First-buy is usually any price as long as not all-time-highs. There's no "right-time" to increase your investment amount, it all boils down to your risk appetite, goal and earning power. Personally, I'd increase my investing power by $2 for every $1 increase in income that I earn.
If the chart keep goes 45 degrees up, you will up; DCA with fix share will lead u invest more over the time when u get in. Any data to control it as Fix DCA versus buying the dip? That will be better comparison i guess...
Hi Li Li, I have not read the book itself, but have watched extracts from other video's summary. Investing with Rose tested it and found it underwhelming: th-cam.com/video/_z5gFN3eX18/w-d-xo.html She does a few follow-up as well so I think you would benefit more from her insights. I'm never a fan of following a fixed formula since the market is dynamic and no algorithm have beaten it before.
@@li-lilim3706 Yeah just go with businesses with great fundamentals and proven scalability - should be fine! Earning Yields mean nothing if the industry is doomed to extinct in 20-30 years
Hi Joey, if you are into VTI ETF, there's really not much of strategy that we can adopt, if my budget is USD 1k/month, I would - invest around 600 USD into VTI ETF and keep the remaining 400 USD to build cash buffer for any potential bear market / correction - depending on your age, personally I would prefer S&P500 ETF over VTI as the return is higher and I think if you have time advantage, you can afford to take more risk (understanding ETFs and individual stocks have much higher risks) - when the market is All-Time-High (ATH), I would wait for the next month before I deploy any further, no harm having some cash stashed aside Keep in mind VTI ETF is a US-domiciled fund, you will lose out at 30% dividend withholding tax. For more details on tax savings, you can refer this video: th-cam.com/video/VIM1fczQdAE/w-d-xo.html
interesting strategy and thanks for sharing. For buying index like S&P500 ETF, it is hard to see discount 10-20% along the line. Average dip is around 2-3% (except for crashes like Covid). Those crashes don't happen frequently. If that the case, is it better to hold on the cash after 1st buy and wait for next big discount or still good to buy at small dips?
Hi magician, that's a good question, and the answer is really depending on your cash buffer and investment objective. Investors (especially ETF investors) aren't encouraged to time the dips because more often the time, you would lose more by staying out of the market (staying out can also means you don't consistently increase your position), can read this useful article: www.fool.com/investing/2020/12/31/missing-just-a-few-of-the-best-stock-market-days-c/
Hi Ziet, u really help us a lot especially like me. So if not mistaken, S&P500 is a dividend stock and Apple is not giving the dividends. Is the DCA is still good to apply on these two diff stocks? Can i just close my eyes and just DCA on S&P 500, QQQ and apple?
Hi Gimiya, S&P500 gives about 1.5% of dividend while Apple gives about 0.6% of dividend. What affects your DCA decision shouldn't be the dividend, but the quality of the underlying asset and the withholding tax you are subjected to. I suggest you watch this video to understand about US taxes and S&P500 ETFs: th-cam.com/video/VIM1fczQdAE/w-d-xo.html For other ETFs, i highly encourage you to watch this video first (i'm sure you will like it): th-cam.com/video/-10iIBnwITg/w-d-xo.html Hope this helps🥰 Have a great day!
Hi Sukhbir, for the initial 3 purchases, it really depends on the current market sentiment, if its a bull market, I will tend to be more skeptical and spread them further apart like once a month (again, time is not the best measurement unit here since market swings differently from season to season). The main one will always be the first purchase, the 2nd, 3rd, 4th and consecutives are usually monthly additions from my day job and side hustles. I don't add new stock picks very often (I have kept it to 3 individual stocks so far after almost a year in the US market), my portfolio here: instagram.com/p/CMMrtSPgs-G/ Not the latest one, but should be pretty close with what I have right now, will be updating it soon. For now I'm in a comfortable position to work towards DCA-ing TSLA once a month - picking new stocks and going through the headache of whether or not to commit with DCA is a pain!
Do you able to show the difference between DCA weekly, bi-weekly, monthly, bi-monthly. Not sure is there any difference on the difference type of DCA. looking forward your new video on this.
Hi, thank you for recommending this, will give it a try when I have the time to do that! But if I gotta be honest, timing within a month is pretty tight, so how effective are they depends on the volatility of the asset, my guess would be the difference is too minute. Maybe something like monthly vs quarterly vs yearly would have some notable differences.
Hi Ziet, thanks for the sharing. It's really useful! I have 2 questions: 1. If my DCA amount changes with time according to changes in financial situations, would it affect the results in the long term? For eg. for this 2 years i DCA 2 shares monthly, but after 2 years i decide to DCA 1 share monthly instead 2. I am investing in VOO. Since it's giving dividend. How do I automatically reinvest the dividend into VOO? (I'm using IBKR as you advised fyi). Thanks in advance! :)
Hi Chiek, 1. Of course it will adjust according to the weighted average amount you put since it changes your cost basis - nothing to do with DCA or not, it just means you invest less in the ups and downs. However, studies have shown historically that lump sum investing for stable/trending upward assets like Index ETFs usually would yield better result. 2. I believe there is a dividend reinvesting function provided by IBKR, but i have not tried it, they might charge you commission fee to buy that fractional shares - not worth it in my opinion, can read up more on that scheme on their website. Hope this helps!
Thank you for your video. Nice strategy which I'm using but slightly differently. I just follow the trend and doing DCA in different levels. When the average goes up I lower my investment. When it goes down I multiply it. In practice an enhanced/dynamic DCA with convex increase of buys when the price goes down. Concave decrease when it goes up. What do you think about? Any serious book/document that you can recommend about this game set?
Hi! Your strategy is a variant of DCA, often referred to as Value Averaging or Dollar Value Averaging. It's a proactive approach that increases investment when prices are low and decreases it when prices are high, which can potentially lead to higher returns in volatile markets. A classic book on this subject is "Value Averaging: The Safe and Easy Strategy for Higher Investment Returns" by Michael Edleson and William Bernstein. This book provides a great insight into this strategy!
Bro you explain things so well. Learned alot from you. But i have one question. If we wanted to start dca. And we are planning to dca on a diff country stocks/etf. Which currency should i dca on
Hi Adi, may I know what do you mean which currency should you dca on? Personally I'm focusing on US market only, so USD would be my main focus if that's what you are asking.
@@ZietInvests if i want to use the Dollar cost average method on the U.S market. I should dca on the U.S currency instead of SG currency right. Example should i be Putting in $100 sgd amount every month and buy the stock or. $100 usd every month in the stock
@@FadeAdqil SGD is just a funding currency, USD is the trading currency so you need to convert your SGD to USD before you can trade US stocks. DCA means consistently buying regardless the ups and downs of the market (stocks), not just depositing cash
Hi Ziet how can I DCA into individual US ETFs in Malaysia other than using robo advisors in which we have no control over which ETF to invest in... Thanks
Too much analysis can be very daunting some times indeed, DCA does make things simpler for us by taking emotion out of investing. Thank you for watching!
I want to say yes, but then again, I’m really not a huge fan of crypto as there’s no underlying cash generating assets that would prop up its value over time, unlike stocks (real businesses) :X
Yup of course, more trades usually will incur more fees because there is a minimum commission fee per trade. Lump sum will have you reduce the % fees paid for your trades, in total.
If you don’t sell, how do you get cash reserve?. You need to apply the same strategy on the way up. Whenever you make 100% double your money take % profit. So if the market crash you have more $$
I have multiple active sources of income that fund my investment account, I might be different from others so there is not one single strategy that works, I would prefer to let my money compound while I work hard to gain more money elsewhere since I am not an active trader
Hi Ziet, thanks for the explanation. Now i've better understanding on what's a DCA. How you see it apply to Fractional Share? assuming you can't afford to purchase one but you're going to buy like $100/ end of the month on that particular stock. Any cons of doing it?
Hi Wesley, fractional or not it’s the same, the gist of it is not to time the market and invest consistently ;P That said, the cons would obviously be spending too much on brokerage fee, but its not the end of the world if you ask me, with IBKR’s 0.35 USD/trade (US market) its almost as good as free!
@@ZietInvests Thanks sir!, will slowly investing & consistently. Now have to start practice "Zen" to calm my inner self to prevent me anyhow buy this and that. Will try to put in more time doing research on the stock & market using Qualitative Analysis approach for now (I'm still not very good at reading number). And just realized I forgot to change to Tier. So got my first transaction charged at $1 instead of $0.35
What if u wanted to invest in apple and put your 5K 1 time and u bought at 30 june 16 when the price was 22.26 and u didnt do DCA, u will get 224 shares at the price of 134 which is a return of 609%. The question is what if you have a 100K READY to invest, what would you do?
It would depend on your risk tolerance and goals - some might choose to diversify across different sectors and ETFs rather than putting it all into a single stock like Apple. Personally a good mix of them + DCA is the way to go for me!
Hi Ziet, thank you very much for your informative videos and above all, your generosity in sharing your knowledge. I have an enquiry: I am working 9-5 and relatively new to investing. With my current salary, I believe I can only afford to invest 0.5 ETF Share (VOO) per month? I guess it also consider as DCA. However, with only able to invest 0.5 share per month, does it consider cost-effective or I should just save until I have sufficient amount to purchase 1 ETF share every 3 months (say)? For investors with only small capital (around USD $100 - USD$300) per month to invest, would it be more advisable/cost-effective to invest in VUAA (USD 80/share)? How much is consider as small capital, in your opinion. Appreciate your view on this :)
Hi Joanne, I believe this video would give you more light: th-cam.com/video/zwpJIP1aNFI/w-d-xo.html With what you're describing, I would say go for the US ETF (VOO or SPLG) instead of Ireland ones (explained in the video) due to the brokerage fee difference (US vs UK). Hope this helps!
Hi Ziet hope you are doing well. I’m using dca low level . if I want to increase the level for example to medium level when market is in bear market, what the percentage to increase ? Thank you for your future opinion.
Hi Billy, what is DCA low level @@ Ultimately the percentage depends on your risk appetite and investment goal, the more you put today, the higher risk you are assuming, the higher reward you can expect, and vice versa, there's no right or wrong % yeah
Hi Ziet, great video! However, I’m a bit confused with rule #2. Do you split your investments into 3 buys during the first, let’s say month, of dollar cost averaging into a stock? What about the consecutive months? Do we just DCA i.e. $6,000 for each month after that initial investment/split?
Hi there, it totally depends on your earning power and cashflow. By general thumbrule since most people receive their paycheck once a month, the "monthly" DCA would work, but I like to optimise it by not DCA on All-Time-High days even though it is the "time to DCA". If say budget in total is $6000 for TSLA, and my monthly bullet top-up is $500, then my plan would look like this: 1. First buy of $2000 not at ATH. Keep $4000. 2. Second buy probably in a month's time, or when opportunity arises. For example at 2nd month it dipped -10%, i will put another $2000. Now i'm left with $2000 + $500 (monthly bullet top-up). 3. Third buy is discretionary, depending on my cash cushion, and my objective at that time. If got huge dips/discount, I will put the $2000, with $500 remaining. If no huge dips/discount, I will keep the $2500, save up until $4000 (since I can later on buy $2000 and have $2000 to follow up). Hopefully you can visualise what I meant haha. That said, all of the above are not guaranteed-to-work strategies, its what I do myself to mitigate the risk of missing out the huge dips without a spare cash cushion. Your situation could be totally different than mine in terms of earning power.
@@ZietInvests im confused. If the total budget is 6k, and you top up 500 monthly, isn't that mean the total budget is not 6k for tesla? Also is 6k annual budget? Thanks.
Hi Ziet, would like to get your opinion. If I have been DCA consistently and I receive a lump sum money for eg. Bonus payout or selling house, should I invest the extra cash lumpsum or spread it out via DCA? By spreading out I will be losing out in terms of "time in the market" right, but if I lumpsum I could be putting a huge portion at a high price. Would like to get your advice. Thanks!
Hi Chiek, ultimately that depends on what are you trying to achieve with that sum, plus it also depends on what kind of stock you are investing in. Technically lump sum is higher risk with higher reward, while DCA is lower risk with lower reward in comparison to lump sum - so you have to decide for yourself in this case.
Haha actually I hinted subtly, Rule No.1 DCA into quality companies with promising prospects. So far I have not seen (at least in my opinion) any KLSE companies that passes this rule (woops!) - hence I have RM 0 invested in Bursa, withdrawn completely from KLSE.
can we do dca with different amount? let say i have 10k and i want to dca 1k by monthly. what if i want to add in that 1k to 1.3k and then next month 700 then another month 1k again? will this work as normal dca?
will answer your question in a reel soon! but TLDR - it works for all intents & purposes and doesnt harm as much as you think, but by definition DCA is fixed dollar amount every fixed set of intervals - in a way like forcing you to invest the same amount during the ups and downs!
Thank you so much for the evidence-based approach and presentation. However, I'm still curious about the frequency of long-term DCA. i.e. your experiment indicated 3 month frequency. However how would it perform with 3months VS 1month VS weekly DCA? would there be differences? e.g. theoretically weekly might be able to catch the volatility of the market etc, but is that really the case with back-testing? Hope to hear some insights from you!
Hi Damien, I have not tested 3 months vs 1 month vs weekly, there will definitely be slight differences but depending on the stock volatility, the differences might be negligible in my opinion. 1 month to 3 month is too short for most established companies to make any difference (in my opinion), unless its a high volatility asset.
just wanna ask if during the bull market, if we scaling out (sell off )portion of our shares, is the DCA still work the same but just in reverse direction? or there is another formula to cover it?
That would depend if you are able to capture the “alpha” when you sell out, i.e. short the market. If you just sell out a portion with a plan to reenter later, that is effectively timing the market because you need to time your SELL and your next BUY perfectly, which defeats the purpose of DCA in the first place
If your timing is impeccable then obviously lump sum is good haha! The problem is - not all of us can consistently time the market well, maybe once or twice, but in the long run we would have a lot of misses too, so that averages out and (might) underperform DCA if you look at a long-term horizon
Hi Jasmine, DCA can apply for stocks or ETFs, and works especially well on ETFs due to their diversified nature. Currently i only DCA stocks because i dont have much ETF in my portfolio 😊
Questions, for msian which broker to use for DCA for non bursa stock or s&p? I mean which broker is the lowest in fees charged? In case I died, how my gf can withdraw my non bursa stock investment in foreign broker. Thanks.
Hi, if you want to trade in the international market, I would recommend you Interactive Brokers: th-cam.com/video/f__HgJRe3nU/w-d-xo.html Regarding your inheritance upon passing, I've replied your comment on another video
I dont understand. first you say DCA is so that you dont have to think and basically put X$ every Ymonths and then you say you split your purchase in 3, have an opening, and then the second buy at -10% or -15%. What if it doesnt go down and only up? are you not invsting more? it might dip again 6 months later but still at a higher price than if you had just bought more every month. I'd love your take on it.
Hi, what I've provided is merely a guideline on how I like to do it - because just by saying "putting X money every month" might not be feasible for most people as they have different stocks at once, and may not be able to DCA all of them monthly. That said, second buy at -10/15% is considered "favorable", if it stays level or go up, i will still continue to buy as long as my cash buffer is in the healthy region, just like how I did with my TSLA stock, then again, it depends on what stocks you are DCA-ing. Usually DCA works best for stocks with higher volatility as a means of risk management, not as a strategy to achieve highest return possible. Hope this clarifies!
Hi Charlton, I have no idea with regards to your risk appetite, monthly disposable income, and financial status etc. That side, I personally think there's not much difference between them, no need to be so rigid when it comes to investing, can always afford to wait between monthly intervals if the market is overvalued
Hi there, my simple return is computed as Sell Price/Cost. It's not time-sensitive since I just want to illustrate the difference in the total return, ROI (your method) is probably a better way to "measure" investment returns, but it's hard to show it on a video for audience that don't understand the time value of money or NPV
That is subjective from person to person, for me, my investments made are usually made for 5 - 10 years and I wont touch it unless really necessary, to shift it into a capital preservation mode (i.e. property, bond, money market funds etc.) or when I really need the money for large life expenses
Hi, I have a question I am sure someone else is having similar thinking like me, so I have total of 3 stocks and the third one i bought recently and i DCA only the third stock leaving the other two as they are for about 6-7 years, is this wrong?
Hi there, not wrong at all, we can't possibly DCA into everything due to cash constraint (especially for starters), but that said, it is always good to have a spare buffer incase you missed out on good deals for the first 2 stocks (for example a 15-20% dip due to certain factors). If you think it is a fundamentally strong stock for the long term, then there shouldn't be anything to worry about. There's no right or wrong, you can always rebalance and shift your DCA focus anytime!
@@ZietInvests Love this, thank you so much my blood pressure is normal again, I will put aside 30 percent in cash from everything I earn for the dips and the 70 for dca. Keep up the videos and the forks!
🔴 Start investing with Interactive Brokers: www.interactivebrokers.com/mkt/?src=zietPY2&url=%2Fen%2Fwhyib%2Foverview.php%3Fnored%3Dt
Love the fork mic
Hehe gotta make the most out of it! 😂
Hi Ziet,
Your materials are great!
I found out that they're clear and very easy to understand.
Simple and clear English.
Yet I also realized that - you accentuate your points with the wordings on the screen.
So when a viewer combines,
1. Watching
2. Listening
3. Viewing (Wording/Scripts)
Viewer really get what you're delivering.😃
Thank you so much Chun Keat! I try my best to, both during scripting, filming and editing to make sure everything is aligned and makes sense to viewers from all sorts of background! I watched them again and again to make sure it is straightforward and easy to understand - im genuinely happy to receive your kind feedback!
Do let me know moving forward with my future videos! Thank you!!
"There seem to be some perverse human characteristics that likes to make easy things difficult"
Warren Buffett
Fantastic video again as it illustrates and enforce the keeping it simple philosophy and why it stood the test of time.
Woah love that plug, I should have known that earlier and put it into the video haha!
Thank you for the kind words, glad the video lived up to your expectation!😊🙇🏻♂️
Love you bro, thanks for sharing I'm 100% DCA now I burned through 3 accounts before
Cheers brother, all the best to your investments!
This video is gold. I started investing in July 2020, invested into Dpharma, watch a lot of videos about investing. And earned almost 100%. Same as you, i got cocky and burnt my hands. Now am looking at dca-ing
It's totally alright, we all make the mistakes but I guess it's all part and parcel of the stock market - what doesn't kill you makes you stronger! Hopefully we will grow from our mistakes and be a better investor for the time to come!
@@ZietInvests Thanks for the encouragement Ziet and for helping the community by teaching. These should be included in high school syllabus sia.
Hi Ziet, you're videos are very well articulated and responsible. It helps a lot for beginners to understand the basics and I see your comments are even detailed and very helpful. Thanks a lot for your hard work and all the advices. Keep it up bro 👍
Thank you so much Imroz!! Hope to see more of your comments in my other videos 😁
Brother. I truly want to compliment you on your dialectics and exposition.
Keep going, you truly deserve a spot up there.
Thank you so much Franco, I try my best to be share informative content backed by facts and results that I can obtain to the best of my ability! Have a blessed Christmas!
@@ZietInvests You too, happy holidays and marry gain$ ! Cheers :)
I've been DCA for 20 years. Bear markets are great time for buying more shares at lower prices. Results are priceless
Definitely so! It’s a challenge to one’s conviction and emotions, we are all human at the end of the day :p
how much per month did you dca..
DCA vs Dips ... shocking!!! Thanks Ziet, as usual awesome stuff. Big fat thumbs up!!
The result definitely surprised me as well! I've always a "meh" towards DCA but after going through this experiment, it feels so much more convincing to just invest and not try to time the market!
good sharing, appreciate it, especially the results of your "test".
Thank you for the kind words Stella - glad it was helpful! Have a great weekend ahead 😊
Your content is Gold. So usefull.
I'm sooooo glad that you loved my work! This means a lot to me!
Thank you-very helpful content. I have learnt something new which I hope to try with scalping future indices.
Cheers!
I used to join employee purchase plan and had some portion of my salary invest in the company stock. By the end of my tenure, I think I break even or even have small earn, just by DCA every month into the company I am working with. I can speak that this strategy works.
Thank you so much for this, I've also been really skeptical about this strategy but after laying out the numbers and seeing it for myself, it just opens up my perspective towards it! I'm definitely more confident and convicted to just invest consistently without trying too hard to time the market (frees up mental capacity too!)!
@@ZietInvests I should mention a caveat. In my case, I am investing in AIA HK. It’s a no brainer, I was working for them, I saw the opportunity, the business; if I am staying for long, the share will appreciate. DCA a good and reputable business is important. I can’t say for sure for other company
Always wanted to know what is DCA. Great videos! Nice details. Keep up the good work!
Hehe thanks for the kind words Michael! Have a great weekend ahead!
got to love the fork and microphone combo
Haha thank you so much XD
I learned from other article. Dollar value averaging usually works better than cost averaging because value averaging results in less money being invested as the stock price goes up, whereas with cost averaging you continue to invest the same number of dollars regardless of the share price.
You're correct. Dollar-cost averaging invests a fixed amount regularly, while value averaging adjusts investment amounts based on performance, potentially resulting in less money invested as prices rise. Each method has pros and cons, and the better strategy depends on various factors including one's investment goals and risk tolerance!
just love your microphone
Haha thank you!
Another excellent video and sound strategy. Agree with your DCA strategy and keep up the good work!
Thank you Christopher! Have a great week ahead!😊
Great videos!! I am really enjoying them. Keep it up!
Gonna try applying this into my future trades
Thank you so much Sakthi! Have a great weekend ahead!
Thanks for the video, Weekly DCA tends to perform better on average than Monthly DCA.
If it works for you, why not!🥰
Thank you so much for the great video especially the comparison chart
You're welcome! Thank you so much for watching - and your kind words mean a lot!
Informative sharing on DCA! Thanks for the tips! 👍🏻😁
You are welcome Julia! All the best in your investments😊
Multi-functional mic holder 👍🏼.
Extracting the value out of it, haha!
Love your doge cup at the back
Hehe thank you 😝
Hahaha😁. Man I loved your video, you earned a new subscriber. The edits are pretty funny as well. Keep it up
Hehe thank you so much, im genuinely glad you liked it! Have a great weekend!
Love your explanation & video
Thank you Rusydi!
Insightful video bro. Thanks for sharing. Looking forward to more videos on your investing philosophies/strategies. 👍
Glad you liked it! Thank you for watching! 😊
Really good video Ziet. Thanks man.
I'm glad you liked the video! Thanks for watching Aaron!
DCA all the way
Yeshhh🔥
Thanks so much for the hard work Ziet! Really enjoyed the video especially the comparison part! Gonna stop being a donkey after watching this video haha! XD
Haha we all are donkeys when we started (im not excluded as well haha). Though with every mistakes made, I personally appreciate my decisions and learn to be more thoughtful next time! Thank you for watching!!
Thanks bro,really helped me!
You're most welcome! ;)
Thank you for the video!
You’re most welcome!!🥰
This man was hit so hard by the 2020 crash, he still using a fork as a microphone 1 year later.
😂😂😂😂
Thank You Ziet
You're welcome Sashi! Have a great weekend ahead!
Great video on DCA ! A very conservative method
Thank you very much Nirvenesh!
Great video again. Simple and to the point.
Sorry for the lengthy question.......... when u say buy in 3 split (say 2000, 2000, 2000). You mentioned follow up buy when -10% pr -15%. Is that -10% from your original buy price or say after 2month the price had gone up and then there was a dip (but price still higher than your original buy price)?
Hi Amerik, great question there! My follow-up buys are usually -10/15% from my initial buy.
For example, I bought TSLA at 1000 USD. If it dips to around 900 USD, I will put my follow up buy.
If it doesn't dip to 900 USD and gone up around 1200 USD but dropped another 10% from there, say down to around 1050 USD (as the situation you described), then I would preferably buy when they settle at a support line, say trading sideways for 1050 USD for 3 to 4 weeks. The reasoning for 3 to 4 weeks is because that's usually the time it takes for my monthly income to build up a sizeable amount for investing.
This only applies to my personal preference with TSLA, other stocks/asset may differ so do keep in mind this is not a 1-trick pony yea! I try not to average up at All-Time-Highs unless necessary or I have enough cash on hand.
Hi Ziet! You have insightful videos. Noobies like myself truly appreciate your knowledge sharing. 🙏 For your DCA, what would be your advice for exit strategy? How long do you usually hold them? Thanks
Hi Jay! Ill probably do it like this, for:
1. Selling for money? To cash out for any huge purchase: house reno, car, for kids etc
2. Sell when company fundamentals changed
3. Sell to go into capital preservation mode
DCA topic is well covered and answer many questions for newbies into US stocks. Really appreciate.
Thank you so much for the kind words Oliver, I try my best to share these info!
Keep it up 🌷
Thank you!
Very nice video
Thank you!
woah wtf. You're at 5k already?! And look at the comments as well, 50! Waahhhhhh big youtuber already now
Haha things have been picking up lately! 😝
@@ZietInvests congratulations! You deserve it. Keep on doing videos and never stop
@@combat2064 Thank you so much! Will work even harder week after week!
Tnks alot....this is good
You're most welcome!
Thanks
Cheers!
Great video. Thank you for sharing your knowledge with us.
Question - is there a minimum number of stocks one should own in their portfolio?
Hi Sagar, thank you for your nice comment.
Re your question, no, there is no minimum number of stocks one should own. The general rule of thumb is, the more you diversify, the lower the risk you're getting, but that also means the lower reward you are going for.
High risk high reward, lower risk lower reward, no right or wrong, it all depends on your current financial situation, expected investment horizon and risk appetite - adjust accordingly!
Can check out this video for more detailed explanation: th-cam.com/video/Gk1z88NWvIk/w-d-xo.html
Should do dca and lump sum investing !
That might work too - especially for our local market! (Though I have nothing left in KLSE myself haha!)
Woah growing fast
Yeeeey 😎
I'm waiting for a video from you on how to tell the health of a company.. 🙏🙏🙏
Hi Agnes, thank you for your suggestion! I will definitely look into that!
support here !
Yayyyy thank you very much bro!
How should we do DCA when purchasing gold ?
Great stuff here again! Just wanted to ask , does it mean I need to gradually increase the amount of money I DCA on index funds? When do you think is the right time to increase $ investment for DCA ? Since a good index fund like VOO will gradually increase in share price. Say my DCA of $200 investment per quarter might not be enough to buy 1 share years down the line.
Hi Casey, amount is never the issue here, the gist to DCA is to "not time" the market, hence investing/buying in consistently is the key to that.
My personal preference is to follow the 3 rules mentioned in this video, buy on support line, or when I have a comfortable cash cushion such that I can have a follow-up buy if market goes bearish. First-buy is usually any price as long as not all-time-highs.
There's no "right-time" to increase your investment amount, it all boils down to your risk appetite, goal and earning power. Personally, I'd increase my investing power by $2 for every $1 increase in income that I earn.
I see that subtle doge cup…🤣
Haha sharp eyes! 😝😝
jesus! thanks for the vid!
No problem buddy! All the best with your investments!
Great video Ziet! Can I get a copy of your DCA spreadsheet please?
Can! Pls drop me an email at hello@ziet.co
Though i have to dig out the file haha
are you really holding the mic with fork? that is creative
🤣🤣😂
I’m so lazy I don’t even DCA. I just HODL.
😂😂as long as it makes money haha!
Holding a mic with a fork..POWER MOVE😂
😂😂😂😂✌🏻✌🏻✌🏻✌🏻
If the chart keep goes 45 degrees up, you will up; DCA with fix share will lead u invest more over the time when u get in. Any data to control it as Fix DCA versus buying the dip? That will be better comparison i guess...
Hi Lawrence, that is a good suggestion - buy fixed dollar instead of fixed number of share; would see if I can get that tested out and structured out!
Dollar cost average is a great way to get rid of floating loss
True! 😄
Thanks for the tips. By the way, have you read Joel Greenblatt's The Little Book That Beats The Market? If so, what do you think about his strategy?
Hi Li Li, I have not read the book itself, but have watched extracts from other video's summary.
Investing with Rose tested it and found it underwhelming: th-cam.com/video/_z5gFN3eX18/w-d-xo.html
She does a few follow-up as well so I think you would benefit more from her insights.
I'm never a fan of following a fixed formula since the market is dynamic and no algorithm have beaten it before.
@@ZietInvests agree, I don't think I want to be so rigid like that. Tks!
@@li-lilim3706 Yeah just go with businesses with great fundamentals and proven scalability - should be fine! Earning Yields mean nothing if the industry is doomed to extinct in 20-30 years
❤❤
🥰
Q: How would u DCA if u hv usd1k to invest monthly into VTI ETF? Hope u reply bro need the suggestion(i understand NFA)
Subbed & liked great content!
Hi Joey, if you are into VTI ETF, there's really not much of strategy that we can adopt, if my budget is USD 1k/month, I would
- invest around 600 USD into VTI ETF and keep the remaining 400 USD to build cash buffer for any potential bear market / correction
- depending on your age, personally I would prefer S&P500 ETF over VTI as the return is higher and I think if you have time advantage, you can afford to take more risk (understanding ETFs and individual stocks have much higher risks)
- when the market is All-Time-High (ATH), I would wait for the next month before I deploy any further, no harm having some cash stashed aside
Keep in mind VTI ETF is a US-domiciled fund, you will lose out at 30% dividend withholding tax. For more details on tax savings, you can refer this video: th-cam.com/video/VIM1fczQdAE/w-d-xo.html
@@ZietInvests well said & golden advice👍🏻appreciate it bro!ill go for CSSPX to DCA usd1k mnthly coz im a low risk n lazy investor😅
@@joeymangkok No problem, live and learn along the way
DCA is supposed to match the market - how does it beat the market as you said in the intro?
interesting strategy and thanks for sharing. For buying index like S&P500 ETF, it is hard to see discount 10-20% along the line. Average dip is around 2-3% (except for crashes like Covid). Those crashes don't happen frequently. If that the case, is it better to hold on the cash after 1st buy and wait for next big discount or still good to buy at small dips?
Hi magician, that's a good question, and the answer is really depending on your cash buffer and investment objective. Investors (especially ETF investors) aren't encouraged to time the dips because more often the time, you would lose more by staying out of the market (staying out can also means you don't consistently increase your position), can read this useful article: www.fool.com/investing/2020/12/31/missing-just-a-few-of-the-best-stock-market-days-c/
Hi Ziet, u really help us a lot especially like me.
So if not mistaken, S&P500 is a dividend stock and Apple is not giving the dividends. Is the DCA is still good to apply on these two diff stocks?
Can i just close my eyes and just DCA on S&P 500, QQQ and apple?
Hi Gimiya, S&P500 gives about 1.5% of dividend while Apple gives about 0.6% of dividend.
What affects your DCA decision shouldn't be the dividend, but the quality of the underlying asset and the withholding tax you are subjected to. I suggest you watch this video to understand about US taxes and S&P500 ETFs: th-cam.com/video/VIM1fczQdAE/w-d-xo.html
For other ETFs, i highly encourage you to watch this video first (i'm sure you will like it): th-cam.com/video/-10iIBnwITg/w-d-xo.html
Hope this helps🥰 Have a great day!
Good stuff! How long of a window do you give yourself in between the 3 purchases?
Hi Sukhbir, for the initial 3 purchases, it really depends on the current market sentiment, if its a bull market, I will tend to be more skeptical and spread them further apart like once a month (again, time is not the best measurement unit here since market swings differently from season to season).
The main one will always be the first purchase, the 2nd, 3rd, 4th and consecutives are usually monthly additions from my day job and side hustles. I don't add new stock picks very often (I have kept it to 3 individual stocks so far after almost a year in the US market), my portfolio here: instagram.com/p/CMMrtSPgs-G/
Not the latest one, but should be pretty close with what I have right now, will be updating it soon.
For now I'm in a comfortable position to work towards DCA-ing TSLA once a month - picking new stocks and going through the headache of whether or not to commit with DCA is a pain!
Do you able to show the difference between DCA weekly, bi-weekly, monthly, bi-monthly. Not sure is there any difference on the difference type of DCA. looking forward your new video on this.
Hi, thank you for recommending this, will give it a try when I have the time to do that! But if I gotta be honest, timing within a month is pretty tight, so how effective are they depends on the volatility of the asset, my guess would be the difference is too minute. Maybe something like monthly vs quarterly vs yearly would have some notable differences.
Hi Ziet, thanks for the sharing. It's really useful! I have 2 questions:
1. If my DCA amount changes with time according to changes in financial situations, would it affect the results in the long term? For eg. for this 2 years i DCA 2 shares monthly, but after 2 years i decide to DCA 1 share monthly instead
2. I am investing in VOO. Since it's giving dividend. How do I automatically reinvest the dividend into VOO? (I'm using IBKR as you advised fyi).
Thanks in advance! :)
Hi Chiek,
1. Of course it will adjust according to the weighted average amount you put since it changes your cost basis - nothing to do with DCA or not, it just means you invest less in the ups and downs. However, studies have shown historically that lump sum investing for stable/trending upward assets like Index ETFs usually would yield better result.
2. I believe there is a dividend reinvesting function provided by IBKR, but i have not tried it, they might charge you commission fee to buy that fractional shares - not worth it in my opinion, can read up more on that scheme on their website.
Hope this helps!
Thank you for your video. Nice strategy which I'm using but slightly differently. I just follow the trend and doing DCA in different levels. When the average goes up I lower my investment. When it goes down I multiply it.
In practice an enhanced/dynamic DCA with convex increase of buys when the price goes down. Concave decrease when it goes up.
What do you think about? Any serious book/document that you can recommend about this game set?
Hi! Your strategy is a variant of DCA, often referred to as Value Averaging or Dollar Value Averaging. It's a proactive approach that increases investment when prices are low and decreases it when prices are high, which can potentially lead to higher returns in volatile markets.
A classic book on this subject is "Value Averaging: The Safe and Easy Strategy for Higher Investment Returns" by Michael Edleson and William Bernstein. This book provides a great insight into this strategy!
Bro you explain things so well. Learned alot from you. But i have one question. If we wanted to start dca. And we are planning to dca on a diff country stocks/etf. Which currency should i dca on
Hi Adi, may I know what do you mean which currency should you dca on?
Personally I'm focusing on US market only, so USD would be my main focus if that's what you are asking.
@@ZietInvests if i want to use the Dollar cost average method on the U.S market. I should dca on the U.S currency instead of SG currency right. Example should i be Putting in $100 sgd amount every month and buy the stock or. $100 usd every month in the stock
@@FadeAdqil SGD is just a funding currency, USD is the trading currency so you need to convert your SGD to USD before you can trade US stocks.
DCA means consistently buying regardless the ups and downs of the market (stocks), not just depositing cash
Hey Ziet, do you track your investments in a spreadsheet?
Hi Keith, I do, on a google online spreadsheet, as well as on my Yahoo Finance mobile app.
Hi Ziet how can I DCA into individual US ETFs in Malaysia other than using robo advisors in which we have no control over which ETF to invest in... Thanks
Hi Bryan, you can opt for IBKR to invest in individual US ETFs: th-cam.com/video/f__HgJRe3nU/w-d-xo.html
I just started the DCA last year coz i am ald tired to read the chart
Too much analysis can be very daunting some times indeed, DCA does make things simpler for us by taking emotion out of investing. Thank you for watching!
Would this also work for the volatility of bitcoin?
I want to say yes, but then again, I’m really not a huge fan of crypto as there’s no underlying cash generating assets that would prop up its value over time, unlike stocks (real businesses) :X
Take a shot every time he says “ dollar cost averaging “
😂😂😂That's a harsh challenge aye
Hi ,when we buy ETF with DCA does it affect commission fee...vs lump sum
Yup of course, more trades usually will incur more fees because there is a minimum commission fee per trade.
Lump sum will have you reduce the % fees paid for your trades, in total.
If you don’t sell, how do you get cash reserve?. You need to apply the same strategy on the way up. Whenever you make 100% double your money take % profit. So if the market crash you have more $$
I have multiple active sources of income that fund my investment account, I might be different from others so there is not one single strategy that works, I would prefer to let my money compound while I work hard to gain more money elsewhere since I am not an active trader
thanks a lot for this video, i'm using this same strategy to invest in cryptocurrency.
Glad you are doing well with your investments! Cheers😊
Hi. What editor software do you use? Thankyou!
Final cut pro X!
Hi Ziet, thanks for the explanation. Now i've better understanding on what's a DCA. How you see it apply to Fractional Share? assuming you can't afford to purchase one but you're going to buy like $100/ end of the month on that particular stock. Any cons of doing it?
Hi Wesley, fractional or not it’s the same, the gist of it is not to time the market and invest consistently ;P That said, the cons would obviously be spending too much on brokerage fee, but its not the end of the world if you ask me, with IBKR’s 0.35 USD/trade (US market) its almost as good as free!
@@ZietInvests Thanks sir!, will slowly investing & consistently. Now have to start practice "Zen" to calm my inner self to prevent me anyhow buy this and that. Will try to put in more time doing research on the stock & market using Qualitative Analysis approach for now (I'm still not very good at reading number). And just realized I forgot to change to Tier. So got my first transaction charged at $1 instead of $0.35
What if u wanted to invest in apple and put your 5K 1 time and u bought at 30 june 16 when the price was 22.26 and u didnt do DCA, u will get 224 shares at the price of 134 which is a return of 609%. The question is what if you have a 100K READY to invest, what would you do?
It would depend on your risk tolerance and goals - some might choose to diversify across different sectors and ETFs rather than putting it all into a single stock like Apple. Personally a good mix of them + DCA is the way to go for me!
Hi Ziet, thank you very much for your informative videos and above all, your generosity in sharing your knowledge.
I have an enquiry: I am working 9-5 and relatively new to investing. With my current salary, I believe I can only afford to invest 0.5 ETF Share (VOO) per month? I guess it also consider as DCA. However, with only able to invest 0.5 share per month, does it consider cost-effective or I should just save until I have sufficient amount to purchase 1 ETF share every 3 months (say)?
For investors with only small capital (around USD $100 - USD$300) per month to invest, would it be more advisable/cost-effective to invest in VUAA (USD 80/share)? How much is consider as small capital, in your opinion.
Appreciate your view on this :)
Hi Joanne,
I believe this video would give you more light: th-cam.com/video/zwpJIP1aNFI/w-d-xo.html
With what you're describing, I would say go for the US ETF (VOO or SPLG) instead of Ireland ones (explained in the video) due to the brokerage fee difference (US vs UK).
Hope this helps!
Hi Ziet hope you are doing well. I’m using dca low level . if I want to increase the level for example to medium level when market is in bear market, what the percentage to increase ? Thank you for your future opinion.
Hi Billy, what is DCA low level @@ Ultimately the percentage depends on your risk appetite and investment goal, the more you put today, the higher risk you are assuming, the higher reward you can expect, and vice versa, there's no right or wrong % yeah
Hi Ziet, great video! However, I’m a bit confused with rule #2. Do you split your investments into 3 buys during the first, let’s say month, of dollar cost averaging into a stock?
What about the consecutive months? Do we just DCA i.e. $6,000 for each month after that initial investment/split?
Hi there, it totally depends on your earning power and cashflow.
By general thumbrule since most people receive their paycheck once a month, the "monthly" DCA would work, but I like to optimise it by not DCA on All-Time-High days even though it is the "time to DCA".
If say budget in total is $6000 for TSLA, and my monthly bullet top-up is $500, then my plan would look like this:
1. First buy of $2000 not at ATH. Keep $4000.
2. Second buy probably in a month's time, or when opportunity arises. For example at 2nd month it dipped -10%, i will put another $2000. Now i'm left with $2000 + $500 (monthly bullet top-up).
3. Third buy is discretionary, depending on my cash cushion, and my objective at that time.
If got huge dips/discount, I will put the $2000, with $500 remaining.
If no huge dips/discount, I will keep the $2500, save up until $4000 (since I can later on buy $2000 and have $2000 to follow up).
Hopefully you can visualise what I meant haha.
That said, all of the above are not guaranteed-to-work strategies, its what I do myself to mitigate the risk of missing out the huge dips without a spare cash cushion. Your situation could be totally different than mine in terms of earning power.
@@ZietInvests I see
It’s more clear now. Thank you!
@@ZietInvests hi Ziet, second question...
Do I necessarily have to split it into 3 buys? Or is it just your general rule of thumb?
@@kingdriverify he mentioned that the split is a personal preference and a good guiding line of thinking
@@ZietInvests im confused. If the total budget is 6k, and you top up 500 monthly, isn't that mean the total budget is not 6k for tesla? Also is 6k annual budget? Thanks.
Hi Ziet, would like to get your opinion. If I have been DCA consistently and I receive a lump sum money for eg. Bonus payout or selling house, should I invest the extra cash lumpsum or spread it out via DCA? By spreading out I will be losing out in terms of "time in the market" right, but if I lumpsum I could be putting a huge portion at a high price. Would like to get your advice. Thanks!
Hi Chiek, ultimately that depends on what are you trying to achieve with that sum, plus it also depends on what kind of stock you are investing in.
Technically lump sum is higher risk with higher reward, while DCA is lower risk with lower reward in comparison to lump sum - so you have to decide for yourself in this case.
Try la apply dca to malaysia market...if u lucky enough some of the company still there.. Some might gone out radar 😂
Haha actually I hinted subtly, Rule No.1 DCA into quality companies with promising prospects. So far I have not seen (at least in my opinion) any KLSE companies that passes this rule (woops!) - hence I have RM 0 invested in Bursa, withdrawn completely from KLSE.
Does this apply to individual stocks?
Hey, yes!
can we do dca with different amount? let say i have 10k and i want to dca 1k by monthly. what if i want to add in that 1k to 1.3k and then next month 700 then another month 1k again? will this work as normal dca?
will answer your question in a reel soon!
but TLDR - it works for all intents & purposes and doesnt harm as much as you think, but by definition DCA is fixed dollar amount every fixed set of intervals - in a way like forcing you to invest the same amount during the ups and downs!
YES ZIET , WE ARE ALL DONKEYS!! THANK YOU :)
Hahaha 😂😂😂 we live and learn everyday!
Thank you so much for the evidence-based approach and presentation. However, I'm still curious about the frequency of long-term DCA. i.e. your experiment indicated 3 month frequency. However how would it perform with 3months VS 1month VS weekly DCA? would there be differences? e.g. theoretically weekly might be able to catch the volatility of the market etc, but is that really the case with back-testing? Hope to hear some insights from you!
Hi Damien, I have not tested 3 months vs 1 month vs weekly, there will definitely be slight differences but depending on the stock volatility, the differences might be negligible in my opinion. 1 month to 3 month is too short for most established companies to make any difference (in my opinion), unless its a high volatility asset.
Buy high sell low. Good strategy or nay?
Stonk strat
just wanna ask if during the bull market, if we scaling out (sell off )portion of our shares, is the DCA still work the same but just in reverse direction? or there is another formula to cover it?
That would depend if you are able to capture the “alpha” when you sell out, i.e. short the market. If you just sell out a portion with a plan to reenter later, that is effectively timing the market because you need to time your SELL and your next BUY perfectly, which defeats the purpose of DCA in the first place
How about lum sum VS DCA? Some said long term lum sum beat DCA
If your timing is impeccable then obviously lump sum is good haha! The problem is - not all of us can consistently time the market well, maybe once or twice, but in the long run we would have a lot of misses too, so that averages out and (might) underperform DCA if you look at a long-term horizon
Hi Ziet, do you DCA rules apply for buying ETFs? my plan was to just DCA monthly.
Hi Jasmine, DCA can apply for stocks or ETFs, and works especially well on ETFs due to their diversified nature. Currently i only DCA stocks because i dont have much ETF in my portfolio 😊
Questions, for msian which broker to use for DCA for non bursa stock or s&p? I mean which broker is the lowest in fees charged? In case I died, how my gf can withdraw my non bursa stock investment in foreign broker. Thanks.
Hi, if you want to trade in the international market, I would recommend you Interactive Brokers: th-cam.com/video/f__HgJRe3nU/w-d-xo.html
Regarding your inheritance upon passing, I've replied your comment on another video
I dont understand. first you say DCA is so that you dont have to think and basically put X$ every Ymonths and then you say you split your purchase in 3, have an opening, and then the second buy at -10% or -15%. What if it doesnt go down and only up? are you not invsting more? it might dip again 6 months later but still at a higher price than if you had just bought more every month. I'd love your take on it.
Hi, what I've provided is merely a guideline on how I like to do it - because just by saying "putting X money every month" might not be feasible for most people as they have different stocks at once, and may not be able to DCA all of them monthly.
That said, second buy at -10/15% is considered "favorable", if it stays level or go up, i will still continue to buy as long as my cash buffer is in the healthy region, just like how I did with my TSLA stock, then again, it depends on what stocks you are DCA-ing.
Usually DCA works best for stocks with higher volatility as a means of risk management, not as a strategy to achieve highest return possible. Hope this clarifies!
Hi , I would like to DCA on some ETFs , do you think by topping up weekly , Bi weekly or monthly is better ? thanks
Hi Charlton, I have no idea with regards to your risk appetite, monthly disposable income, and financial status etc.
That side, I personally think there's not much difference between them, no need to be so rigid when it comes to investing, can always afford to wait between monthly intervals if the market is overvalued
Hi Ziet, on the DCA slides, I did an ROI calculation and it has a return of 55.26%. Sounds dumb, but how do you get the 155% simple return? Thanks
Hi there, my simple return is computed as Sell Price/Cost. It's not time-sensitive since I just want to illustrate the difference in the total return, ROI (your method) is probably a better way to "measure" investment returns, but it's hard to show it on a video for audience that don't understand the time value of money or NPV
When you will sell the stock if the share hold for 3 years?
That is subjective from person to person, for me, my investments made are usually made for 5 - 10 years and I wont touch it unless really necessary, to shift it into a capital preservation mode (i.e. property, bond, money market funds etc.) or when I really need the money for large life expenses
Hi, I have a question I am sure someone else is having similar thinking like me, so I have total of 3 stocks and the third one i bought recently and i DCA only the third stock leaving the other two as they are for about 6-7 years, is this wrong?
Hi there, not wrong at all, we can't possibly DCA into everything due to cash constraint (especially for starters), but that said, it is always good to have a spare buffer incase you missed out on good deals for the first 2 stocks (for example a 15-20% dip due to certain factors).
If you think it is a fundamentally strong stock for the long term, then there shouldn't be anything to worry about. There's no right or wrong, you can always rebalance and shift your DCA focus anytime!
@@ZietInvests Love this, thank you so much my blood pressure is normal again, I will put aside 30 percent in cash from everything I earn for the dips and the 70 for dca. Keep up the videos and the forks!