Re:“Buy and Hold” No More: The Resurgence of Active Trading
by nly on Saturday April 10, 2021 @05:11PM
(#26765149)
It's not a 'strategy' really. Most regular Joe investors earn a salary every month, and keep spare money invested in the market. DCA isn't a choice in this case, it's the natural result.
Re:“Buy and Hold” No More: The Resurgence of Active Trading
by emerongi on Saturday April 10, 2021 @06:29PM
(#26765799)
It is a strategy. If you sell your house and invest the proceeds into the stock market, DCA says you shouldn't just do one huge buy order, but you should spread your orders out over a longer timeline. It's two different strategies.
> The financial costs and benefits of DCA have also been examined in many studies using real market data, typically revealing that the strategy does not deliver on its promises and is not an ideal investment strategy.
> Recent research has highlighted the behavioural economic aspects of DCA, which allows investors to make a trade-off between the regret caused by not making the most of a rising market and that caused by investing into a falling market, which are known to be asymmetric.