Friday, 27 June 2014

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.
Photo: http://www.fool.sg/2014/06/10/why-its-okay-to-invest-even-at-a-market-high/ 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 opinion - 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
Photo: China - last 5 years Long term china will still go up . But how much opportunity have u lost in the last 5 year.
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2 comments:

  1. Investopenly28 June 2014 at 11:08

    Good point to ponder, but if apply on the STI, it would be a different story right? ;-)

    ReplyDelete
  2. Lizardo28 June 2014 at 11:34

    Take a longer time horizon for DCA. 10-20 years? I think it will pan out. Don't forget the dividends that wouldn't show up on the index.

    ReplyDelete

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+56% in 2 months !! 在家赚钱不是梦！！

  +56% in 2 months.  在家赚钱不是梦！！