About the Video
In this video, I talk about Dollar-cost averaging (#DCA), a time-tested and proven investing strategy that even a beginner can implement to easily beat most of the market benchmarks.
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ https://www.interactivebrokers.com/mk...
To back that up, I will also show you my back-testing data to show you the differences between DCA vs Buying the Dips, plus 3 DCA rules that I personally implement in my investing routine to get the most out of my money.
🔽Time stamps:
0:00 Introduction
0:38 Video outline
1:13 What is DCA?
2:28 Why DCA?
5:56 Back-testing DCA vs Buying the Dips
9:26 My DCA Rule 1: DCA into quality companies
9:56 My DCA Rule 2: Split into 3 BUYs
10:40 My DCA Rule 3: 20% cash reserve
11:16 Summary & outro
Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset’s price and at regular intervals. In effect, this strategy removes much of the detailed work of attempting to time the market in order to make purchases of equities at the best prices.
Over time, the average cost per share you spend will probably compare quite favorably with the price you would have paid if you had tried to time it. In the long run, this is a highly strategic way to invest. As you buy more shares when the cost is low, you reduce your average cost per share over time.
Dollar-cost averaging is particularly attractive to new investors just starting out. It’s a way to slowly but surely build wealth even if you’re starting out with a small stake.
👉🏻Even God Couldn’t Beat Dollar-Cost Averaging (article): https://ofdollarsanddata.com/even-god…
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