Very true, I agree with you for layman doing long term investment, DCA is the way to go. Leave timing the market to the pro traders, they have the tools and experiences to do so.
most retail investors should DCA because they are unable to control their emotions when stocks fall they dont dare to buy.. when stocks goes up they fear missing the boat the common folks often buys high and sells low
I always believed in long term Investment as a savings vehicle for retirement. As I am a passive investor, with a day job does not allow me to monitor stocks movement actively, DCA is the only way. Or else, I have to engage a financial planner if I have a bigger capital pot. :-)
Hi how are u doing . Can increase your dca from low level aggression to medium level when in bear market? And what is the increase percentage if you can .
Very general statement n advice but as good as no advice. “Never buy at bottom”? When’s bottom? If one knows the bottom, then profits r guaranteed 100% of the time. Then the advice “don’t time the market, time in market more important”? “and always sell too soon”? Again this is timing the market. When’s too soon n how soon is too soon? If one knows when’s too soon then one will never be too late.
@@sincerelycai854 Actually it's a reference to show that markets are manipulated and hard to predict. To put it simply, no one can catch the bottom and no one can sell at the peak.
DCA requires way more investing discipline than you think. You will get emotional and think that you are buying at the high and wait for dip to DCA. Because of this, you will lose out of gain that is coming. If you want to DCA, BE DISCIPLINE AND STICK TO YOUR PLAN!
One way to help maintain discipline is to set up standing order with banks or financial platform to invest fix amount on a monthly basis. Then forget about it. Come back to it 10 years later. You will be surprise what you see for doing so minimum effort.
You're comparing a lump sum investor who cashes out of the market, versus a DCA investor for whom you don't talk about cash out. That's comparing apples to oranges. If I'm a lump sum investor who puts money in with a time horizon of at least 10 years, my average entry price would have still been better than a DCA entry price given a sufficiently long period of time.
@@joshconsultancy The only case where the buying dip entry is bad is where you bought at the top. If you bought somewhere in the middle and held, or better still somewhere near the bottom, you will always be at least the same or better than DCA. But that's the point about buying the dip - you're not going to buy at the top because by definition you would have bought at some kind of price correction. Also, it depends on what exactly you mean by buying the dip, because that's a super broad term with no official definition. If by 'buying the dip' you mean simply buying when price goes down then you're basically taking just the weakest version of 'buying the dip', setting it up as a strawman, and then dismantling it. But a lot of people like me who buy the dips are looking at other things like moving averages, doing TA. We're still buying the dips, just that we're not buying any dips - we buy dips if and only if they satisfy our criteria - basically where there's a strong indication where the market is likely to turn around. Even so, people who buy the dip generally do not simply go all in as you seem to suggest. Some do but by no means does that mean that all except the most inexperienced of traders do. At least for me I split my allocation to 3-4 sections and buy in tranches, which means that if the market dips further I get to double down. Last but not least, as I pointed out, your argument about why buying the dip is bad................. is actually very heavily premised about when you EXIT. You haven't truly shown that it's actually bad to buy the dip - you've only actually shown that it's bad to sell the immediate bull after a dip. Again, going by your argument, assuming a dip buyer simply held, they would win compared to a DCA entry most of the time.
Very true, I agree with you for layman doing long term investment, DCA is the way to go. Leave timing the market to the pro traders, they have the tools and experiences to do so.
most retail investors should DCA because they are unable to control their emotions
when stocks fall they dont dare to buy.. when stocks goes up they fear missing the boat
the common folks often buys high and sells low
Good one. High volatility DCA will win.
I always believed in long term Investment as a savings vehicle for retirement. As I am a passive investor, with a day job does not allow me to monitor stocks movement actively, DCA is the only way. Or else, I have to engage a financial planner if I have a bigger capital pot. :-)
Agree. What do you DCA into?
Are the financial planners with dbs good enough to advice on DCA into which instruments
Havent explored it. Anyone can chip in? From what I know POSB has some STI etf monthly investment, that can work
Hi how are u doing . Can increase your dca from low level aggression to medium level when in bear market? And what is the increase percentage if you can .
All good =) . You can increase your DCA as long as you have thought through the worst case and wont reverse course
Great video
STI on afterburner ! Now already above3400
Thats after getting written off for years haha =)
Not right or wrong
of course. hopefully the sharing explained abit better on how to approach it
@@joshconsultancy yeah. Great 👍
For small time investors, lump sum investing might save some trading fees too.
trading fees is small vs mistakes. Oh and funds or robo portfolios dont have trading fee
"Never buy at the bottom, and always sell too soon."
Thats deep
Very general statement n advice but as good as no advice. “Never buy at bottom”? When’s bottom? If one knows the bottom, then profits r guaranteed 100% of the time. Then the advice “don’t time the market, time in market more important”? “and always sell too soon”? Again this is timing the market. When’s too soon n how soon is too soon? If one knows when’s too soon then one will never be too late.
@@sincerelycai854 Actually it's a reference to show that markets are manipulated and hard to predict. To put it simply, no one can catch the bottom and no one can sell at the peak.
@@sincerelycai854 0 is the bottom
Can you reduce the number of ads in your video please. That will be greatly appreciated. Thanks
I see 2 automatically placed there so I went with it. It brings in ad revenue to keep the channel going. Hope you understand
In most instances testosterone to bet one lump sum will gain control for most people.
Well said!
DCA requires way more investing discipline than you think.
You will get emotional and think that you are buying at the high and wait for dip to DCA. Because of this, you will lose out of gain that is coming.
If you want to DCA, BE DISCIPLINE AND STICK TO YOUR PLAN!
One way to help maintain discipline is to set up standing order with banks or financial platform to invest fix amount on a monthly basis. Then forget about it. Come back to it 10 years later. You will be surprise what you see for doing so minimum effort.
It's true, fear in market bears can still cause one to stop their DCA which is detrimental to the process itself
1
1?
You're comparing a lump sum investor who cashes out of the market, versus a DCA investor for whom you don't talk about cash out. That's comparing apples to oranges. If I'm a lump sum investor who puts money in with a time horizon of at least 10 years, my average entry price would have still been better than a DCA entry price given a sufficiently long period of time.
depends on how youve entered. Hence the "buying the dip" is a terrible idea portion discussed
@@joshconsultancy The only case where the buying dip entry is bad is where you bought at the top. If you bought somewhere in the middle and held, or better still somewhere near the bottom, you will always be at least the same or better than DCA. But that's the point about buying the dip - you're not going to buy at the top because by definition you would have bought at some kind of price correction.
Also, it depends on what exactly you mean by buying the dip, because that's a super broad term with no official definition. If by 'buying the dip' you mean simply buying when price goes down then you're basically taking just the weakest version of 'buying the dip', setting it up as a strawman, and then dismantling it. But a lot of people like me who buy the dips are looking at other things like moving averages, doing TA. We're still buying the dips, just that we're not buying any dips - we buy dips if and only if they satisfy our criteria - basically where there's a strong indication where the market is likely to turn around.
Even so, people who buy the dip generally do not simply go all in as you seem to suggest. Some do but by no means does that mean that all except the most inexperienced of traders do. At least for me I split my allocation to 3-4 sections and buy in tranches, which means that if the market dips further I get to double down.
Last but not least, as I pointed out, your argument about why buying the dip is bad................. is actually very heavily premised about when you EXIT. You haven't truly shown that it's actually bad to buy the dip - you've only actually shown that it's bad to sell the immediate bull after a dip.
Again, going by your argument, assuming a dip buyer simply held, they would win compared to a DCA entry most of the time.