Hi all,
Do you think with the ETF's in play, and the buying and selling thats going on OTC we should all consider more precisely when we do our DCA buy. Should we setting our DCA after US market close on a week day or even off a weekday and onto a weekend day?
Regards,
Greyhats
The US market does not affects your DCA. Unless you do not understand fully what they mean by DCA. It is dollar cost average. You buy based on the percentage you set from your income without having to bother what may affect the market or not. This means that the only time your DCA can shift is when your income get higher or lower . For instance if your are dcaing 40% of your income monthly and your salary is $100 which is equivalent to $40.. So if there is an increase in your monthly income, let me say from your initial $100 to $200. Your dca value would now be $80 monthly. Same thing goes to a scenario where there is a decrease in your income, the dca price would be lesser based on the percentage you set for it.
I hope you understand now. The ETF, buy and sell in the US markets cannot affect your investment approach if dca is your strategy. The only persons that may experience some challenges are trading. Remember, majority of rhose who dca are holding their investment for long. They have the mindset that the value will be significant in the near future. However it is your choice to choose if you want to hold for decades, yearly or bi- yearly.