Lump Sum vs. DCA: Why not try first?
I guess we are talking about a system of investing rather than how to pick stocks.![]()
According to the DCA theory, over time, you will buy more shares when the market drops and fewer when it goes up. So, your average cost per share will be lower in the long run, you see.
For long-term investors, the lump sum theory suggests that when you sell your stock , maybe 20 years later, it will usually be at a higher price, leading to a profit.
But, what is your tolerance for losses? If u do lump sum, but later it goes down, it can be a big emotional damage.![]()
![]()
For me , I would prefer to do DCA or at least use half-half to try first lah. ![]()
Cuz, no one knows the future!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Investing enthusiast sharing my journey. Dive into the latest topics and investment trends! 🌟📈
15Followers
15Following
46Visitors
Follow
102312701 : Good