Does Dollar Cost Averaging works? - Part 2

One must understand how DCA works. It only work in uptrend or recovery markets. And please take note that I never said DCA won't work at all, but DCA won't work in a down trend market. 

Qn:  DCA can apply in STI or China in the long term. says 10-20 years? 

Ans: Yes. Cos China & STI will be in the uptrend in the long term. Question is whether this person can/willing to invest for a period of 10-20 years. And will this person give up half-way and stop investing when he or she see their portfolio dropping by 30-50% during the downtrend/recession, for example 2008-2009 or not growing after investing for a few years.

See what happen by DCA in China for past 5 years, how much opportunity have this person lost. 

Why can't we wait till the market bottom up and start buying in the uptrend.

Buy Low Sell High is always the most basic fundamental of investing.

And please take note that DCA cannot apply to individual stock.

"Buy low and sell high. It's pretty simple. The problem is what's low and what's high" 
- Jim Rogers

Does Dollar Cost Averaging works?

dollar cost averaging - DCA is a popular concept in the financial markets.
but please understand the concept of DCA before applying. 
this is only my view - 

markets moves in 3 directions - uptrend, sideways/recovery and downtrend.
DCA only works in the uptrend and sidesway/recovery markets and not downtrend market.
try DCA in nikkei market. i don't know how much u have make over here.





China - last 5 years
Long term china will still go up . But how much opportunity have u lost in the last 5 year

Investing in unit trust/linked funds ?

A lot of people said that unit trust and linked fund cannot make money. 

Is it true?

http://www.mmltrader.blogspot.sg/2013/12/investment-linked-fund-cannot-make.html

http://www.mmltrader.blogspot.sg/2013/12/investment-linked-fund-cannot-make_24.html

MARKET SENTIMENT - 14 MAY 2014

S&P 500 touched 1900 last night. but be careful of candlestick.

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US Market Sentiment

Short Term     - neutral

Long Term      -  Bullish

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MARKET SENTIMENT - 29 APRIL 2014

When large fund (big boys)  have already get out of the market or in defensive stocks, where should you park your money in?


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US Market Sentiment

Short Term     - neutral / bearish

Long Term      -  Bullish

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MARKET SENTIMENT - 20 MARCH 2014

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US Market Sentiment

Short Term     - neutral / bearish

Long Term      -  Bullish

Those who have weak heart . My advise is to stay out of the market . Don't say I never warn you . 

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MARKET SENTIMENT - 5 MARCH 2014

No chart uploaded since no laptop to use.

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US Market Sentiment

Short Term     - although s&p500 keep on breaking new highs. My view is still neutral. my funds is still in the bond fund.
Sit back and relax .

Long Term      -  Bullish

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