This is why i watch very short videos on topics....If someone can't explain it in under 2 mins, then they likely don't understand it themselves very well.
@@dylanrawlings5741 lol right. That isn't true at all necessarily. It totally depends on the complexity of the topic and the depth of the explanation. This scratches the surface of what DCA is. I pick shorter videos when I want a concise explanation. Longer if I want in depth. Also, sometimes people at the top of their field give lengthy explanations about their practice, and clearly _they_ understand it. ALSO, short explanations are sometimes trash. Like I get there is a link between conciseness and understanding, but only in relation to how much information is being divulged.
You've got a point there. I'm thinking she would be upset about the money she could have made. If she had invested all $12k at the start of the year and got 240 shares and then the stock does well all year, her money would have grown more than what she ended up with (200 shares, each with varying amounts of growth depending on when they were purchased). Correct me if I'm wrong, I'm trying to understand this better!
@@rBaILeY1421 The maket is volatile in the short term. Buying in a lump sum concentrates your risk of being at a loss in any point in time. Dollar cost averaging allows you to average out your risk but diminishes your return as well. Dollar cost averaging in an index severely limits your risk of losing it all because any number of stocks can go to zero without you losing your whole investment. As long as the sector of the economy your index is tracking still exists and the number of people on earth keeps growing, you will gain money over the long term with compounding interest. This is the safest way to invest in the stock market and you'll probably outperform what you could gain trying to time the market. If you do want to take on more risk and get better potential gains, you have to learn to find the intrinsic value of companies, not stocks
@@stephenchurch1784 good points! I never thought of it like that (concentrating your risk). I like the idea of dollar cost averaging an index fund. I haven't made many moves since I made my comment a year ago, but now I'm thinking it's time to reevaluate my positions. Thanks for the tips!
What kind of left handed freak is this guy! How does he do that?!! Totally missed all the info in the vid because I was too mind-blown by the amazing backward writing! Witchcraft!
Well he surely wasn’t kidding when he said in Taken on having a very particular set of skills; skills he have acquired over a very long career including to learn writing backwards ..
Wouldn't doing this ONLY when the investment is going downhill be the best thing to do? Lets say you buy 100 stocks for 100$ and then price halves, you buy 200 stocks for 100$, now you have 300 with an average cost of $0.66 each stock rather than the $1.00, so we just moved our average price down. which means we break even at $0.66. I wouldn't think a single scenario where you move your cost average UP, just take your profits on the up and dollar cost average on the down. ezpz
In a scenario where dollar cost averaging is something you do because you do not have a lump sum to invest in (like the majority of people), most people would use a chunk of their monthly salary to put towards DCA investing. However, the question I've always had is at what point, if there is one, do you stop actually dollar cost averaging and putting that monthly sum into your stock market investment instrument? Whether it be an index fund or holding your chosen asset class in a trading account, is there a point at which you stop actually investing? I've been doing this for coming up to 2.5 years now and in the long run for the purposes of the strategy I'm implementing, this is no amount of time at all but is there an optimal point at which DCA becomes disadvantageous/does not reap benefits? Would be great to hear people's thoughts/research they might know of!
Did I find the answer? 18 soon and investing soon Imma probably put a lump sum of 1k? Of my own cash or 1.7k if I get a stimulus check And dollor cost average the rest (perhaps withdraw 50 dollars a month to invest)
Ideally, never since you want your money to grow, possibly up on until the day you want to retire. Besides there is compound interest, so ideally you want to invest as long as possible
Doesn't reduce risk at all, DCA just feels more comfortable to people with higher risk aversion as they won't regret investing only part of the sum they had available, if the price goes down afterwards. They would still regret it if the share price continues to rise (i.e. they could've gained more by buying more shares before the price increased). Also if the price goes down, it could be due to a change in the company's fundamentals.
Is there a sell-side equivalent to dollar cost averaging? I was thinking about exit strategy and my first instinct was to pretend you're buying dollars with your stocks or whatever asset and so you "buy" with X units of stock every month/year. But this creates an unpredictable income stream.
They way he explains it is that if you use DCA, and the company does really well that year, then you would have bought fewer shares and actually lost money? In what scenario is using DCA effective for gains?
K sweeney the way I look at it is that it's all money gained in the end. This one is less risk, less reward financially but seems safer if your goal isn't to maximize but to stack slowly over time to balance the ups and downs of the market. I'm no expert and this is just my 2 cents that hopefully compounds each day 😆
can some explain the end of the video - she'd have less shares yes, but isn't this a justifiable outcome of dollar cost averaging? why does he throw his pen haha - this would be okay wouldn't it?
D.C.A = buying consistently every week or every month. I am a crypto type of guy, and I buy BTC and ETH every week no matter the price because, for me, it's about the long-term.
@@lukaszhorzela1801 well i guess you can still do dollar cost averaging but just buy more during dips if they happen. im just saying it seems like a meh strategy
Always Go All-in. Do your home work first ofcourse. Gain understanding of trading, stocks, options. Follow the example how you make love, you start big, you finish well, without doing a bit by bit every month. Buy bitcoin and screw the stocks. ETF's are going to be the new standard and big tech is going that way. Don't miss the bus.
I don’t know why you give a single stock as the example versus something like an index fund. You’re giving good education and bad advice at the same time.
I went to your channel expecting to find the proper explanation. All I saw was zen. If your tutorial videos are private can you please share the link🙏🏾
This is a bad explanation. It doesn't explain the benefits. It doesn't even clearly explain the strategy but leaves you with the impression that you "understand." And the final point is that if the stock goes up, it means DCA failed, which is silly.
dollar cost averaging is totally BS, buy it one time at a price and watch it keep growing, when the value falls under your purchasing price you buy more, if not keep watching it grow....................
![YoungBoy Never Broke Again - Sneaking [Official Video]](http://i.ytimg.com/vi/1ILUps2zDFU/mqdefault.jpg)
This is why i watch very short videos on topics....If someone can't explain it in under 2 mins, then they likely don't understand it themselves very well.
That sounds smart, but is not necessarily true
@@dylanrawlings5741 lol right. That isn't true at all necessarily. It totally depends on the complexity of the topic and the depth of the explanation. This scratches the surface of what DCA is. I pick shorter videos when I want a concise explanation. Longer if I want in depth. Also, sometimes people at the top of their field give lengthy explanations about their practice, and clearly _they_ understand it. ALSO, short explanations are sometimes trash. Like I get there is a link between conciseness and understanding, but only in relation to how much information is being divulged.
Totally wrong. U can't explain everything in a short time. It solely depends on its complexity.
say ur dumb and hav short attention time span without saying it .
Im not sure if im more impressed by your teaching ability or the fact that you know how to write backwards. 😳
Lol it's just flipped in post edit 😂
@yodeejaymoney766 you have no proof.
well, MSFT is now floating around $110 a share... so Arianna did very well if she went all in.
Its now at $210, im sure she is extremely happy right now lmao.
The problem is she couldn't know five years ago
@@BigNameJamesStuff I hope the party isn't over
@@Oliver-bn7jt nope the party goes on, its $221 a share now
Almost $300 now 😂
Thanks for explaining that in a simplistic way! I Watched other videos, and it sound like rocket science!
Extremely well explained
Does he actually writes backwards?
sidework1 no, it's a lightboard. It's mirrored and then flipped I think.
I'm told dollar cost averaging is going of to do and that it works. Any thoughts?
I don't understand your comment.
Writing normal on a transparent board. Then the video is Horizontally Reversed. You're welcome.
Was just thinking the same thing.
Dollar cost averaging is a great way to get the best overall price on an asset.
best explaination ever. I could not understand this but this was quick and simple. Thank u so much
The best explanation for 2 minutes!!!
Thanks for explaining! Before I didn't know what Dollar Cost Averaging meant now I do :)
The last part was not right. Even if she ends up with fewer shares (because the stock is going up) she is still making a profit!
It's not about the ammount of shares yes. It's about value. Everything is about value.... -_- i was also like ohhh ok that last was not right.
You've got a point there. I'm thinking she would be upset about the money she could have made. If she had invested all $12k at the start of the year and got 240 shares and then the stock does well all year, her money would have grown more than what she ended up with (200 shares, each with varying amounts of growth depending on when they were purchased).
Correct me if I'm wrong, I'm trying to understand this better!
Also to add... its anout the LONG TERM value too. So ariana did well ❤️
@@rBaILeY1421 The maket is volatile in the short term. Buying in a lump sum concentrates your risk of being at a loss in any point in time. Dollar cost averaging allows you to average out your risk but diminishes your return as well. Dollar cost averaging in an index severely limits your risk of losing it all because any number of stocks can go to zero without you losing your whole investment. As long as the sector of the economy your index is tracking still exists and the number of people on earth keeps growing, you will gain money over the long term with compounding interest.
This is the safest way to invest in the stock market and you'll probably outperform what you could gain trying to time the market. If you do want to take on more risk and get better potential gains, you have to learn to find the intrinsic value of companies, not stocks
@@stephenchurch1784 good points! I never thought of it like that (concentrating your risk). I like the idea of dollar cost averaging an index fund. I haven't made many moves since I made my comment a year ago, but now I'm thinking it's time to reevaluate my positions. Thanks for the tips!
What kind of left handed freak is this guy! How does he do that?!!
Totally missed all the info in the vid because I was too mind-blown by the amazing backward writing! Witchcraft!
had to watch the video twice because of this..
Writing normal on a transparent board. Then the video is Horizontally Reversed. You're welcome.
bDan vertically
@@riyasatohib5184 Reviste your answer.
The Irish are special people....
Excellent simple example right down to the point.
What about only DCA-ing when the security is in the red for the past 24hrs? Wouldn't that be slightly riskier, yet offer potentially higher returns?
Wow!! What a explanation, sir I love you.
Mrs Jane is legit and her method works like magic I keep on earning every single week with her new strategy.
Wow I' m just shock someone mentioned expert Mrs Jane I thought I' m the only one trading with her..
She helped me recover what I lost trying to trade my self..
I think I'm blessed because if not I wouldn't have met someone who is as spectacular as expert Mrs Jane
I think she is the best broker I ever seen
Thanks for introducing me to Mrs Jane
I love liam neeson teaching me econ
Well he surely wasn’t kidding when he said in Taken on having a very particular set of skills; skills he have acquired over a very long career including to learn writing backwards ..
Great video sir, thanks. Concise.
Really Good and simple explaination!
Buying when the price is down is really good so this is a good idea
Well that is a simple explanation. Thanks
Great video !!! My personal opininion it is not so safe to apply the dca technique i prefer the technique of spreading in different reliable stocks.
Perfect explanation
This is so simple its brilliant! Thank you
well that was fast. thanks. if only more content was this good.
Wouldn't doing this ONLY when the investment is going downhill be the best thing to do? Lets say you buy 100 stocks for 100$ and then price halves, you buy 200 stocks for 100$, now you have 300 with an average cost of $0.66 each stock rather than the $1.00, so we just moved our average price down. which means we break even at $0.66. I wouldn't think a single scenario where you move your cost average UP, just take your profits on the up and dollar cost average on the down. ezpz
timeless information! i should make videos like these. thanks, this has helped me on the beginners investment journey. hope you’re doing well!
In a scenario where dollar cost averaging is something you do because you do not have a lump sum to invest in (like the majority of people), most people would use a chunk of their monthly salary to put towards DCA investing. However, the question I've always had is at what point, if there is one, do you stop actually dollar cost averaging and putting that monthly sum into your stock market investment instrument? Whether it be an index fund or holding your chosen asset class in a trading account, is there a point at which you stop actually investing?
I've been doing this for coming up to 2.5 years now and in the long run for the purposes of the strategy I'm implementing, this is no amount of time at all but is there an optimal point at which DCA becomes disadvantageous/does not reap benefits?
Would be great to hear people's thoughts/research they might know of!
Did I find the answer? 18 soon and investing soon
Imma probably put a lump sum of 1k? Of my own cash or 1.7k if I get a stimulus check
And dollor cost average the rest (perhaps withdraw 50 dollars a month to invest)
Ideally, never since you want your money to grow, possibly up on until the day you want to retire. Besides there is compound interest, so ideally you want to invest as long as possible
Great video. Thank you 😊
For each of those shares, the gains or loss will be at the avg cost rate? Or at the original purchase rate?
is that to reduce risk?
The better the company does the more expensive the shares become
Doesn't reduce risk at all, DCA just feels more comfortable to people with higher risk aversion as they won't regret investing only part of the sum they had available, if the price goes down afterwards. They would still regret it if the share price continues to rise (i.e. they could've gained more by buying more shares before the price increased). Also if the price goes down, it could be due to a change in the company's fundamentals.
if you do dollar cost average strategically, it can reduce risk. but periodic purchases doesnt really reduces risk
Is there a sell-side equivalent to dollar cost averaging? I was thinking about exit strategy and my first instinct was to pretend you're buying dollars with your stocks or whatever asset and so you "buy" with X units of stock every month/year. But this creates an unpredictable income stream.
Well explained, Thanks!!
Which is the better strategy?
Can this work if you setup daily auto investments of a few dollars in different stocks
Still good move if you have to pay commission?
They way he explains it is that if you use DCA, and the company does really well that year, then you would have bought fewer shares and actually lost money? In what scenario is using DCA effective for gains?
K sweeney the way I look at it is that it's all money gained in the end. This one is less risk, less reward financially but seems safer if your goal isn't to maximize but to stack slowly over time to balance the ups and downs of the market. I'm no expert and this is just my 2 cents that hopefully compounds each day 😆
Awesome!
Does it have to be on the first of the month like what does that mean
How did you learn how to write backwards so good? Amazing!
Damn who gets 12k from their grandmother? Haha Hey thanks for this vid and the explanation sir ! 👍 😊
can some explain the end of the video - she'd have less shares yes, but isn't this a justifiable outcome of dollar cost averaging? why does he throw his pen haha - this would be okay wouldn't it?
very helpful
D.C.A = buying consistently every week or every month. I am a crypto type of guy, and I buy BTC and ETH every week no matter the price because, for me, it's about the long-term.
thanks
This seems sort of dumb. Why not just buy dips rather than the first of the month?
agreed im also buying the dips rather than just periodic purchases which mean lower average prices and able to buy more
How do you identify a dip?
@@shivam.maharshi I just mean when something is down a decent amount in the short term like 10% or so
@@GovnaBuckingham What if there is no dip and you missed 20% growth?
@@lukaszhorzela1801 well i guess you can still do dollar cost averaging but just buy more during dips if they happen. im just saying it seems like a meh strategy
Or just look for a couple of companies that’s currently undervalued and dump it there. Leave it a year, sell, and repeat with another of companies.
Wait... Are you writing backwards?????
He must have practiced that backward writing circus act a million times because he is a master at it!
Writing normal on a transparent board. Then the video is Horizontally Reversed. You're welcome.
@@virusak3 you're a smart person haha
isn't she get 24 shares, or am I stupid?
u r stupid....240*50=12000
@@amitshete1132 HAAH!🤣🙏🏻
I bought 240 shares of MSFT at $72.
Didn't buy anymore :(
my man over here writing backwards can we give him a clap
👍👍👍
SIMPLE....
Always Go All-in. Do your home work first ofcourse. Gain understanding of trading, stocks, options. Follow the example how you make love, you start big, you finish well, without doing a bit by bit every month. Buy bitcoin and screw the stocks. ETF's are going to be the new standard and big tech is going that way. Don't miss the bus.
Well MSFT is at $430 today...
Boyer Spring
Ireland
ngl the whole writing backwards thing is kinda tripping me out
Writing normal on a transparent board. Then the video is Horizontally Reversed. You're welcome.
writing backwords :o how
Howe Dam
I don’t know why you give a single stock as the example versus something like an index fund. You’re giving good education and bad advice at the same time.
I went to your channel expecting to find the proper explanation. All I saw was zen. If your tutorial videos are private can you please share the link🙏🏾
Susinct but audio too low on recording side.
Kassulke Turnpike
That is a lot of effort for a non diversified portfolio.
Dca is dumb if you invest long term tbh
How so? With the current proping up of the market, there is always the possibility of a crash no?
Perhaps Arianna should divide her investment up into half “Microsoft “ & half in her local pub , just Incase 😂🍷🍷
This is a bad explanation. It doesn't explain the benefits. It doesn't even clearly explain the strategy but leaves you with the impression that you "understand." And the final point is that if the stock goes up, it means DCA failed, which is silly.
So you had to learn how to write backwards for these videos ? Lmao??
Their mean. Invega cost investing. Yeeash. Average. Field waves brought this to my attention.
23097 Billy Gardens
dollar cost averaging is totally BS, buy it one time at a price and watch it keep growing, when the value falls under your purchasing price you buy more, if not keep watching it grow....................
88529 Mae Row
9366 Deanna Burg