facebookHow long should I be monthly cost averaging into a stock for? 6 months or 1 year? - Seedly

Anonymous

20 May 2020

βˆ™

General Investing

How long should I be monthly cost averaging into a stock for? 6 months or 1 year?

In other words, how much money should I be pumping into a single stock . Should I stop once I have 10k, 50k or maybe even 100k invested into the stock?

Discussion (9)

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On Stock Picking:

https://papers.ssrn.com/sol3/papers.cfm?abstrac...

TLDR Version: With over 60,000 firms and stock data, the best performing 811 firms (1.33% of total) accounted for all of the net global wealth creation.

On Dollar Cost Averaging and Lump Sum Investing:

https://www.morningstar.com.au/learn/article/th...

TLDR Version: Most people should not be following a DCA strategy if they have a pot of gold. DCA strategy works best for people who want to invest from their monthly cash-flow.​​​

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Should cost average until its no-longer in value range and/or X weightage in your portfolio

Elijah Lee

16 May 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

In my view, if your available cashflow is enough to sustain the DCA with a transactional cost of les...

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