Could you explain why this is? I don't believe in DCA. I invest all my savings whenever I have money. How would I do things differently with DCA?Thanks,Nick Dollar cost averaging is a powerful mechanism to invest on a regular basis, as you do with your weekly salary.It has the neat property that an investment can actually grow even if the stock price at the end is equal to the stock price at the beginning.Consider this stock price history on a monthly basis:Jan - 10, Feb - 9, Mar - 8, Apr - 7, May - 8, Jun - 9, Jul - 10Assume you invest $100 each month so that the number of shares you buy each month is:Jan - 100/10 = 10; Feb - 100/9 ~ 11; Mar - 100/8 ~ 13; Apr - 100/7 ~ 14 May - 100/8 ~ 13; Jun - 100/9 ~ 11; Jul - 100/10 = 10Total Invested = 7x100 = $700Total Number of shares = 10+11+13+14+13+11+10 = 82Stock price at end = 10Investment worth at end = 10x82 = $820Profit = $120Neat, huh ?g2w
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