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Home Forums Q&As for Live Shows Dollar Cost Averaging

  • Dollar Cost Averaging

     Rob updated 8 months, 1 week ago 3Members · 2 Posts
  • Mason Corbett

    Member
    May 14, 2020 at 8:18 pm

    With dollar cost averaging, what percentage loss on a position would signal when you should further buy into a stock? (assuming you believe in the company)

  • Rob

    Member
    May 17, 2020 at 7:55 pm

    Good question. For me personally, there’s not a simple answer. It depends on so many things – like macro enviroment, company news, my strategy for holding a stock. I would say if a stock is dragged down by overall market conditions, thats usually a good time for DCA. Or if a stock trades down on low volume with no news or catalysts, that’s also a good time to DCA.

  • Justin Oh

    Administrator
    May 19, 2020 at 11:00 am

    Yes, find a stock or ETF that you believe in for a 5-10 year hold. Long term stuff. Then through a tumultuous time like this (especially a dropping market), I would divide the cash you want to put to it by (~6 months x 4 weeks), and just buy that amount per week. Hope that makes sense!

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