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

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

  1. The dividends better be enough for food then :p
     
    #31     Aug 13, 2011
  2. so you have 1 unit on in AUG, then the same amount each month thru JAN. Then cool it for 2 yr, and do it again, so next time would be Feb thru JUL.

    no stops

    So that would be about 16% a month of your stash every month for six months every two years.

    Not sure if waiting for a bear mkt has anything to do with it. Tossing the I Ching everyday until you get a 64 would probably also be a good place to start.
     
    #32     Aug 13, 2011
  3. baro-san

    baro-san

    Life's lesson is: adapt to survive, don't and you'll die!

    Buy and hold in a bear market is a bad strategy. It's simple: if you expect the prices to not go up, don't buy!
     
    #33     Aug 13, 2011
  4. the whole secret is the part about 20yr.
     
    #34     Aug 13, 2011
  5. that's why about 15 years before you "retire" you start diversifying out of stocks.
     
    #35     Aug 13, 2011
  6. It seems then, that profits are made or lost on the exit, not on the entries.
     
    #36     Aug 13, 2011
  7. You'd be close to dead by then. I suggest you donate all that money to me today instead of doing that abhorrent averaging and worrying if the price is down more.
     
    #37     Aug 13, 2011
  8. I'm not sure I understand. I thought DCA was investing the same amount of money for example every year?

    No matter price.
     
    #38     Aug 13, 2011
  9. I thought it was "Better to die on your feet than live on your knees."

    But anyway, that's why I never buy gold, not since 1987, because I never expect it to go up. It was too high at $350 and it's too high at $1700.

    I never hold in a bear market. Once it's gone down 20% I sell. Then when it's gone back up 20% I expect it to go up so I buy.

    Thanks for that lesson on life. (BTW, as far as I know, everyone who has ever lived has died.) There is however some controversy concerning Enoch.
     
    #39     Aug 13, 2011
  10. It is. What he's describing is a form market timing, not DCA.
     
    #40     Aug 13, 2011