Friday 27 June 2014

Does Dollar Cost Averaging works?

dollar cost averaging - DCA is a popular concept in the financial markets.
but please understand the concept of DCA before applying. 
this is only my view - 

markets moves in 3 directions - uptrend, sideways/recovery and downtrend.
DCA only works in the uptrend and sidesway/recovery markets and not downtrend market.
try DCA in nikkei market. i don't know how much u have make over here.



Photo: http://www.fool.sg/2014/06/10/why-its-okay-to-invest-even-at-a-market-high/

dollar cost averaging - DCA is a popular concept in the financial markets.
but please understand the concept of DCA before applying. 
this is only my opinion - 

markets moves in 3 directions - uptrend, sideways/recovery and downtrend.
DCA only works in the uptrend and sidesway/recovery markets and not downtrend market. 
try DCA in nikkei market. i don't know how much u have make over here.


China - last 5 years
Long term china will still go up . But how much opportunity have u lost in the last 5 year



Photo: China - last 5 years 
Long term china will still go up . But how much opportunity have u lost in the last 5 year.