About the Video
Which is a better stock investing strategy in 2022? DCA or Lump-Sum Investing?
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ Click Here
⬇️Timestamps:
0:00 → Introduction
0:43 → DCA vs Lump Sum Investing (Overview)
2:41 → When to choose between DCA and Lump Sum Investing?
4:31 → When will DCA ever fail?
6:13 → Verdict and conclusion
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.
According to experts, lump-sum investing outperforms DCA 75% of the time for stocks and 90% of the time for bonds, but DCA may be a good choice for investors worried about taking on immediate risk, and may serve as a risk management strategy for investors looking to slowly average into the market.
Depending on the size of the investable amount in question, investing the lump sum all at once may require a high tolerance for risk; it’s more of a gamble in that the market can immediately tank or immediately skyrocket.
❗️USEFUL LINKS❗️
✅Start Investing in the U.S. market now!👇🏻
• Investing in the US market
✅Full Interactive Brokers Playlist👇🏻
• Interactive Brokers Guide
✅Beginner’s Step-By-Step Playlist to Start Investing 👇🏻
• Beginner’s Guide to Investing
✅My StashAway playlist👇🏻
• Playlist
✅🎥All the gears that I use to make my YouTube videos: Click Here
Follow Ziet
Disclaimer: This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.
