dollar cost averaging vs everything else
Dollar cost averaging vs everything else
Dollar cost averaging is just another form or market timing and doesnt work.
Yes because investing a fixed amount of money over a predetermined amount of time is exactly market timing. Right
Dollar cost averaging can get fucked. I would be about 10x richer if I had gone all in on BTC and xmr from the start.
When there is an opportunity take it.
We could use an alternative definition of effectiveness based on the amount of protection provided in the worst 50 cases (out of the 500 or so, thus roughly 10% of cases). Here are the results:
DCA-06 beat lump-sum 46 times, 34 by 5%, 11 by 10%. Lump-sum lost over 7.3% 50 times.
DCA-12 beat lump-sum 48 times, 40 by 5%, 22 by 10%. Lump-sum lost over 8.2% 50 times. DCA-18 beat lump-sum 47 times, 34 by 5%, 26 by 10%. Lump-sum lost over 3.6% 50 times.
DCA-24 beat lump-sum 41 times, 33 by 5%, 22 by 10%. Lump-sum gained under 1.2% 50 times.
DCA-36 beat lump-sum 36 times, 30 by 5%, 25 by 10%. Lump-sum gained under 9.1% 50 times.
By this criterion, the maximum "insurance protection" against the worst losses is offered by DCA for 12 to 18 months. But since the "insurance premium" is hefty and increases from 1.11% to 3.84% over this period, the best balance occurs around 6 to 12 months.
i would be ... if i did ... too user.
the point of the future is it's utterly unpredictable and hindsight is always 20/20.
what are ways other than timing the market and dollar cost averaging? which is better
uh. that is it. and there isn't a better choice. it just depends on the amount of risk you want to frontload.
there are other ways, i have heard
Do you expect anyone to read this block of jargon and horse shit numbers?
Na it's 100% predictable. Bitcoin or Monero (probably Monero) will go to the moon eventually and 95% of the way there is up.
All the time you're dollar cost averaging you're risking missing a massive leg up for fear of losing 20% in a down turn.
what a statement. What else is there then?
with coins the risk is not 20% it's everything. no it's pure gambling. and your possible gains are not as good as your risks would require.
otherwise all the hedge funds would have swamped bitcoin already. they know the real risks and expected returns better.
i read it and it's interesting.
i dollar cost average penny stocks a couple shares at a time with robinhood. im doin alright
>I would be about 10x richer if I had gone all in on BTC and xmr from the start.
or 10x poorer
DCA is amazing
If you dca part of your salary into mutual funds every year you basically have a guaranteed 6 months emergency fund
>investing your emergency fund
do you not know what an emergency is?
m8 the idea is that you slowly invest your emergency fund such that you keep adding to it from your salary at an equal rate
that's an almost willfully retarded way of looking at it
If you do it right the first time, you don't need this bandaid.