Investing in SPY using dollar cost averaging, searching for ideas.

Discussion in 'Stocks' started by FreakofNature, Aug 13, 2011.

  1. Totally different animal.

    There are many different ways to approach it but everything depends on your time frame.

    But my short answer would be sell at the top :)
     
    #91     Oct 29, 2011
  2. I dont have a name for it, I developed it because I wanted a no brain method of using capital across various markets(stocks commodities, etc...) But I did not want to add capital to stagnant markets, hence the price movement portion. Also I wanted to take advantage of corrections, hence the reset schedule portion.

    Its hard to talk about returns because of the random starting point and what is being done with the sideline capital. But if you pick any random point in the past it will give you a better overall price rather then DCA or BnH. The reason is corrections are pretty violent and you are buying with more frequency on the recovery in a shorter period of time. Think about the 87 crash, you would have bought a lot more at lower prices rather then 1 monthly purchase with DCA.

    I can also tell you that this definitely does not work on individual stocks.
     
    #92     Oct 29, 2011
  3. that's why I always say on most systems. Well Martingale has his system, you minds well just call it Rehobothing.
     
    #93     Oct 29, 2011
  4. thanks, then would it be the same for gold? Physical vs futures?
     
    #94     Oct 29, 2011
  5. Revisiting this old discussion I created.

    Well, it worked "ok". Why because I caught the rally way underleveraged.

    Another downside of averaging down.

    FoN
     
    #95     Feb 26, 2012
  6. To the OP

    I have not read this entire thread, but if it has not been mentioned already, you may want to use options when feasible. I assume you are talking about DCA for the long term?
     
    #96     Feb 26, 2012