Practice DCA with proper discipline and emotional control. If you can manage your emotions well, you’ll be able to stick with DCA consistently. regardless of whether the market is pumping or crashing. That’s the key to making it work: buying at regular intervals no matter what the market is doing.
But in reality, it’s hard to stay calm when everything is red. When the market is bleeding, instead of buying more, many people panic and sell which completely goes against the plan. That’s when you fall into the trap of weak hands. That’s why it’s just as important to train yourself to manage fear and emotion, so you won’t be swayed by FUD.
You perfectly explained main problem with DCA. It is not just about plan but about controlling your feelings. It is easy to buy regularly when market is doing well but when prices drop and everything looks bad it is really hard to stay calm. Many people panic and sell instead of buying more which ruins their plan. And this is trap of weak hands. That is why learning to manage your fear and emotions is just as important as knowing how DCA works. You clearly identified biggest challenge for most investors.