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Is DCA a good way to buy STI ETF?
By Data Science Investor  •  April 25, 2020
Dollar Cost Averaging (DCA) is an investing strategy in which an investor mades regular purchases of a targeted equity or asset at periodic intervals in the attempt to reduce the effects of volatility. To put it simply as an example, it's the act of putting $1000 on STI ETF on every first trading day of the year regardless what the price of the STI ETF is. In this methodology, you also avoid attempting to time the market and hence avoid the mistake of making one lump sum purchase at a terrible price. If you were to put DCA under a microscope, does it do equally well in both rising and falling markets? Apparently no. A short article here highlight this. In a falling market, DCA triumphs. As the price of the equity keeps falling, the same sum which you invest at periodic intervals allows you to buy more and more...
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By Data Science Investor
This is a site to publish my findings and research which are based on data science to aid you in your decision making process for investments in stocks and property, particularly in the Singapore market.
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