Post
Topic
Board Bitcoin Discussion
Re: DCA method
by
pawel7777
on 14/09/2024, 11:34:44 UTC
Generally, the DCA strategy doesn't really requires struggling but rather it should depend totally on your cash flow and understanding how much of your disposal income that is readily available for investment, one doesn't really need to struggle but should tailor down the part that will suit him (...)

Agree, if investing is causing anyone financial hardship, they should reduce the amount they invest on a regular basis, or even not invest at all and focus on increasing their earnings.
The guy I was responding to said that he's doing DCA weekly, but if he doesn't have money one week, he'll try to buy double the amount the week after. That's not in line with the DCA strategy, in which making regular buys is the key.
With the approach of postponing buying to a later term, there's a risk of not averaging the price correctly (e.g. if you buy the double or triple amount on a local peak). Such an inconsistent strategy could give much worse returns than proper DCA or buying-the-dip.