Post
Topic
Board Speculation
Merits 3 from 2 users
Re: Buy Buy Buy or Sell Sell Sell?
by
Jewan420
on 16/09/2024, 17:24:36 UTC
⭐ Merited by fredericktaylor (2) ,JayJuanGee (1)
I can't really get what you mean but what am trying to insinuate is
Invest with spare cash i.e amount of money you can do without
It helps in DCAing without getting anxious every time.

Your summary is very useful for an investor. One of the important features of the DCA method is the use of unnecessary overhead. This is one of the ways to successfully lengthen DCA. DCA has some characteristics, the main three are - (1) being consistent and long-term (2) using redundant funds. (3) Keeping an emergency fund ready.

I think an investor could be at risk if he ignores any of these three. DCA is essentially about being regular in investment, i.e. investing a certain amount consistently on a weekly or monthly basis. Of course you have to be long-term. Here the issue of price change has to be completely ignored. The money you use to invest must be money left over after meeting your needs, which you will not lose if you lose, or which you will not need in the future. That is, you will invest with the aim of losing the invested money that you will not regret losing. If the investment is successful, you must accept and enjoy it. Emergency funds play a major role in making investments successful in the long run. Its function is that after starting the investment, you don't have to worry about breaking the investment at an adverse moment in your life, instead of taking the money from the investment, you will take the money from the emergency fund. Selling investments at unfavorable times may not be profitable, you may face unexpected losses if the market is not in your favor. Emergency funds work to avoid this risk.