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Subject:  Re: Investing Frequency Date:  10/27/2007  3:03 PM
Author:  warrl Number:  4464 of 5260

(I prefer to DCA and this will also keep my cash levels more stable than a lump purchase and then reaccumulating cash through savings).

There are two major uses for DCA. One is good, one is not.

(1) A way of imposing and enforcing self-discipline and discarding emotion. Unemotional self-discipline is essential to ALL good investment plans, and this is a relatively easy way to do it. Excellent idea.

(2) An investment strategy, as an alternative to putting an available lump sum into the market all at once. An investment strategy is also essential, but this is not a good one. It's a form of market timing, but strangely, one that doesn't even look at the market!
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