Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Welcome FidgetyFledgling. We're glad you could join us.

Dollar cost averaging is a noble concept and usually works best in say 401k's where you buy the same mutual fund with the same amount of money again and again.

For stocks, one technique is called buying in thirds. You decide on your target portfolio, and then buy positions in the each stock in at least three portions. You might spread them over several months. But personally I would be opportunistic. If one seems to be moving ahead strongly, you may want to buy it sooner rather than wait. If you spot dips, those are great opportunities to take advantage of.

In any case, you will want to keep an eye on your stocks and act quickly if the prospects for higher prices wane.

Yes, you can park your funds in money markets while you wait, but with interest rates so low, its not a great investment opportunity. Any place safe is fine. Leaving funds in your mutual funds and then transferring over in several portions can also be considered.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.