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Should You Use Dollar Cost Averaging When Investing?
By Value Invest Asia  •  August 5, 2019

I was first introduced to the concept of Dollar Cost Averaging (DCA) when I was new to investing. At that time, I thought DCA sounded logical for it denotes the idea where investing should be viewed as a long-term activity to increase one’s wealth and not as a speculative activity to make a quick buck. 

Before I move on, let me briefly explain the key concepts of Dollar Cost Averaging: 

What is DCA and How it Works? 

Dollar Cost Averaging is an investment method which involves the following:

You pick an investment, be it a stock, a mutual fund, an ETF … etc. Let’s use a stock known as A Ltd as an example. Let’s assume that you are able to save $1,000 a month to buy shares of A Ltd. In Month 1, A Ltd was trading at $ 1 a share. Thus, you purchased 1,000 shares of A...
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By Value Invest Asia
Value Invest Asia started as a simple idea. While we are still studying for the Chartered Financial Analyst Program, three of us met at a CFA event. We were just starting out in our career but we found out even then, that not many people in the financial world are true believers of value investing ...
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