How to make money in investing?

People say making money in the stock market is impossible. But it's not true. Actually, it's easy if you DCA into good companies.

Dollar-Cost Averaging (DCA) is a strategy used by investors to reduce the impact of volatility on large purchases of financial assets, such as stocks. By investing a fixed dollar amount regularly into a specific asset, investors can buy more shares when prices are low and fewer shares when prices are high, averaging out the cost of their investments over time. When applied to large and valuable companies, this strategy tends to be particularly effective due to the generally upward trend and lower volatility of such investments compared to penny stocks.

Investing in large, valuable companies through DCA allows investors to benefit from the stability and growth potential of these firms. These companies often have more predictable performance, robust business models, and a history of resilience in various market conditions, making them a safer bet for long-term growth. As a result, investors can potentially see a more consistent and reliable accumulation of wealth over time, with reduced risk of significant loss compared to speculative investments in penny stocks.

On the other hand, penny stocks are known for their high volatility and unpredictability, making them less suitable for DCA. The inherent risk associated with penny stocks stems from their low prices, which can lead to substantial percentage swings in value with even minor market movements. While there's a potential for high returns, the risk of substantial loss is equally high. DCA into large, valuable companies mitigates such risks and leverages the power of compounding returns over time, offering a more stable path to wealth accumulation.