What is your experience with the dollar-cost-averaging (DCA) strategy?

Asked 4 years ago

I have 6 stocks and $300 to invest on the monthly basis. So, I could put $50 in each one if I do DCA, but not sure if this is the best way to go. I would appreciate some input. Thanks.

Dollar cost averaging Investment strategies

Andrew Moran

Wednesday, June 30, 2021

The DCA strategy works for investors who have entered the stock market in the middle of a bull run or who purchased at the top.
If you got in on the ground floor in the middle of the market meltdown in February and March 2020, it is going to be hard to DCA down.
That said, in this type of market, DCA will be your friend. If you are certain of the long-term performance of a stock, whether it is in technology or energy, you need to DCA and buy the dips whenever you can. This way, you can avoid the volatility and take full advantage of the bull run (perhaps it will get memeified!).