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Comment by lui8906

DCA has positives and negatives.

Positive, you are averaging out the risk by spreading out your purchases and averaging into your position.

Negative, time in the market beats timing the market, therefore you are better to have all your money you intend to invest in the market right away so you can enjoy appreciation, dividends etc

If you have a large lump sum to invest it can be better to buy in one go or in a shorter period. However if you earn money over time and look to invest, it makes sense to DCA each month you receive your salary rather than waiting to time the market.

NFA DYOR :)

parent lui8906 4 years ago

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