A Thought About Dollar-Cost Averaging
My son has recently started to invest in stock and he shared with me more than once about his strategy of dollar-cost averaging like a regular saving plan at equal intervals.
Over here in my country, the bank provides a service that allows us to purchase ETF monthly with auto-deduction from our bank account.
Coinbase also has this function that it promotes whenever we purchase cryptocurrency.
Below is a videoclip that provides information about it. https://www.youtube.com/watch?v=ZdJgJqEOOQ4 Video Source
From the conversation with my son, it is a good strategy that we need not bother about whether the market is good or bad but we can even out our investment and build a nice future fund especially for my retirement.
This is a long-term investment that allows us to invest during bear market, bull market or even a stagnant situation when market is not moving up or down.
The even out of our investment regardless of market condition would allow us to save up more than putting in a bank.
Nevertheless, we must bear in mind that there are trading costs since most brokerages do charge for their service but we may be able to earn as a long-term investment to cover the fees.
Do you think dollar-cost averaging is good way of investment in your personal opinion?
After hearing much from my son, I did sign up for a regular deduction from my bank account as a long-term investment.
Disclaimer: This is my personal reflection and I am not in any position to instruct anyone what they should do. I am not responsible for any action taken as a result of this post. My post can only be a reference for your further research and growth.
