Benefits of following DCA- Dollar Cost Averaging

mk4

legendary

Activity: 2716

Merit: 3817

Paldo.io 🤖

Quote from: JeromeTash on November 28, 2019, 06:37:20 PM

Imagine! it's my first time hearing about this method yet i have been trading for a while now Cheesy

However what i have observed is that the method is good for those who are patient and don't really want to go through a lot of hassle like people who do daily spot and margin trading.

Well to be fair, the strategy is a lot more for long-term investors(and not active traders) so there's already a huge difference there. Both DCA-ing and active trading can work, it just really depends on the person. But obviously, day trading isn't really for everyone. Long term investing via DCA has a higher chance of success I'd say.

JeromeTash

legendary

Activity: 2100

Merit: 1208

Heisenberg

Imagine! it's my first time hearing about this method yet i have been trading for a while now Cheesy

However what i have observed is that the method is good for those who are patient and don't really want to go through a lot of hassle like people who do daily spot and margin trading.

Velkro

legendary

Activity: 2296

Merit: 1014

Great advice to newbies in terms of trading/not sure at what price go in and buy a lot.
This method is not perfect but its best for newbies to acquire bitcoin at good price steadly.
Only problem is when you want to buy a lot like $100 000 at once, then buying for $1000 every week will take 100 weeks so 25 months so over 2 years Sad

. Its better if you have no savings, then you decide how much to spend from each paycheck with this method, easy.

RapTarX

hero member

Activity: 1358

Merit: 850

Bump

RapTarX

hero member

Activity: 1358

Merit: 850

A big shout for mjglqw for this post.

DCA- Dollar Cost Averaging
A method to accumulate a certain coin, daily/weekly/monthly/yearly (any certain interval you pick up). Regardless of its price, in the DCA method, an investor purchases the particular coin for a certain period on each interval.

Some possible picture if you would follow the DCA method-

Invest Amount- $10
Invest interval- Weekly
Invest Period- Last 6 months
Profit- 60.30%

Invest Amount- $10
Invest interval- Weekly
Invest Period- Last 1 year
Profit- 57.17%

Invest Amount- $10
Invest interval- Weekly
Invest Period- Last 2 year
Profit- 41.34%

Regardless of the bearish market, you would still in profit if you were following the DCA method. By the way, you can get benefit from the DCA method in the long-term.

Limitation
Only exhibited the graph with 1-week interval data. If you change the interval, the profit/loss will be changed.

*The green line measures total invested amount and the yellow(?) measures the value of your asset.

All graph source- https://dcabtc.com/

Topic: Benefits of following DCA- Dollar Cost Averaging (Read 240 times)