Go all in for a single stock? It is certainly not that difficult to have lady luck on your side and have a huge gain in a single trading day. Similarly, it is certainly that not difficult to lose that entire gain the following day too. Can your heart take this kind of emotional coaster ride?
Dollar Cost Averaging (DCA) is definitely one of the safest methods for long-term investment. DCA will help take away a big bulk of your emotions when you invest.
Regardless of whether the market goes up or down, you continue to DCA at regular intervals, thus lowering the risk and effects of any single market move by spreading your investment out over a long period of time.
DCA over a long time horizon is the way to go for me. As someone who starts DCA at an early age, I am looking at reaping tremendous rewards when I retire!
Dollar Cost Averaging (DCA) is definitely one of the safest methods for long-term investment. DCA will help take away a big bulk of your emotions when you invest.
Regardless of whether the market goes up or down, you continue to DCA at regular intervals, thus lowering the risk and effects of any single market move by spreading your investment out over a long period of time.
DCA over a long time horizon is the way to go for me. As someone who starts DCA at an early age, I am looking at reaping tremendous rewards when I retire!
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The biggest mistake is simply buying a hot stock without understanding the fundamentals of the company. No analysis was done on the company and the buy is merely an emotional decision.