DCA works for indexes, not for falling single name
If a stock is in a confirmed downtrend, adding all the way down isn’t ‘smart long-term investing’—it’s subsidizing your own bad timing. You confuse conviction with stubbornness. “I’m just lowering my cost basis” becomes a shield to avoid admitting the original thesis is broken. Waiting For Bullish Trend Is Better Instead of shoveling cash into a falling knife, wait for the behavior of the stock to confirm demand is back. Price back above the 200‑day moving average. Higher highs and higher lows on the daily Volume expanding on up days, shrinking on down days. Pros don’t marry entries. They cut losers, wait, and only add back once the trend actually turns: price back above key moving averages, higher highs/lows, and strong volume on green days. Stop DCA’ing your mistakes. Let the trend flip bullish, then press when buyers are clearly in control.
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66 Comments
Green Gambit
@defive · 8mo
Buy high and sell low, works every time. Lol
Paul N@pauln · 8mo
You’re just saying “Time the market“ using different terminology. I prefer time in the market. I disagree with your sentiment. I buy when good quality securities and sectors are suddenly out of favour because of reasons that don’t really make sense or you know will eventually be resolved. It’s very difficult to jump in exactly at a bottom. Anyone looking at a stretched out chart of the S&P will see “the world is ending” and you will lose all your money predictions never materialized and can visualize for themselves how silly a statement like that is.
Åll-ïz @shift4 · 8mo
I think you're confusing trading and long term investing. There is a huge differance between the two.
Mr Jack Trading Cat
@mrjacktradingcat · 8mo
When I stopped trying to time absolute perfect entries and made sure we were over 200 ideally 50 got much better results
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