Post
Topic
Board Speculation
Merits 2 from 2 users
Re: Buy Buy Buy or Sell Sell Sell?
by
7juju
on 16/09/2025, 17:18:26 UTC
⭐ Merited by nestex_one (1) ,JayJuanGee (1)
If you've a large discretionary income present, it's fine to lump sum since the funds are available. Personally, I wouldn't lump sum with everything at once. I'll like to divide the money into 3 parts, lump sum with the first part, use the second part to increase my aggressiveness in DCA and keep the last part for buying my target dip.

So I did lump sum some time back, but personally I feel now (hindsight?) that splitting the same amount into a DCA would have been a more effective approach.

I bought in Nov '24, as a lumpsum. Then in Jan/Feb I was happy but in Feb we got a bit of a dip - right up until April.

Conversely if I'd done a small amount in Nov, then bought DCA below my last buy price I think I'd have made a bundle more.
Situations like this are the reason why it's advisable for investors to always follow up their lump sum investment with constant/periodic DCA. Making a lump sum buy is good, but once in a while keep adding to your portfolio with dca. This will help you take more advantage of the drops that occasionally experienced in the market. Don't just make a one time lump sum buy and feel relaxed.