Dollar cost averaging vs everything else

BunnyJinx
BunnyJinx

dollar cost averaging vs everything else

Methnerd
Methnerd

bump

Snarelure
Snarelure

bump

Emberburn
Emberburn

Dollar cost averaging is just another form or market timing and doesnt work.

Poker_Star
Poker_Star

Yes because investing a fixed amount of money over a predetermined amount of time is exactly market timing. Right

Sharpcharm
Sharpcharm

bump

Emberfire
Emberfire

opposite of

Fried_Sushi
Fried_Sushi

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.

Stark_Naked
Stark_Naked

When there is an opportunity take it.

JunkTop
JunkTop

bump

Stupidasole
Stupidasole

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.

Lord_Tryzalot
Lord_Tryzalot

i would be ... if i did ... too user.

the point of the future is it's utterly unpredictable and hindsight is always 20/20.

Soft_member
Soft_member

what are ways other than timing the market and dollar cost averaging? which is better

happy_sad
happy_sad

uh. that is it. and there isn't a better choice. it just depends on the amount of risk you want to frontload.

Carnalpleasure
Carnalpleasure

there are other ways, i have heard

Snarelure
Snarelure

Do you expect anyone to read this block of jargon and horse shit numbers?

RavySnake
RavySnake

yes

hairygrape
hairygrape

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.

Stark_Naked
Stark_Naked

what a statement. What else is there then?

Ignoramus
Ignoramus

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.

Spazyfool
Spazyfool

i read it and it's interesting.

PurpleCharger
PurpleCharger

bump

Stark_Naked
Stark_Naked

i dollar cost average penny stocks a couple shares at a time with robinhood. im doin alright

PurpleCharger
PurpleCharger

I would be about 10x richer if I had gone all in on BTC and xmr from the start.

or 10x poorer

VisualMaster
VisualMaster

DCA is amazing
If you dca part of your salary into mutual funds every year you basically have a guaranteed 6 months emergency fund

lostmypassword
lostmypassword

investing your emergency fund
do you not know what an emergency is?

takes2long
takes2long

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

ZeroReborn
ZeroReborn

that's an almost willfully retarded way of looking at it

Illusionz
Illusionz

bump

Nude_Bikergirl
Nude_Bikergirl

If you do it right the first time, you don't need this bandaid.

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