I am trying to grow the money I have by DCA every month. What is the best approach in for fastest and highest growth?

I started investing using roboadvisors as I felt that it is easier to get into and it is more flexible in terms of the amount of money I need to put in. I have since invested using robots for a year now. Now, I feel like I am ready to take more risks and I am wondering if I can get higher growth potential if I invest in stocks (e.g. Tesla) instead of ETFs from robo.

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Jovan Lai

22 Mar 2021

DCA is a strategy for passive investing. It works on the assumption that the underlying asset will eventually recover and go higher over long periods of time. This works for broad market index funds or diversified portfolios.

There is no guarantee in individual stocks. Look at companies that have made people a fortune but have now tumbled and caused many who didn’t understand what they were investing in to lose money.
GE, Nokia, Toys R us, Kraft Heinz etc...

Most strategy will work in a bull market, but what if these “growth stocks” stop growing and after a bear market, they are unable to sustain the company and never recover from the plunge? DCA will lead you to continuous buy smth that is not recovering. A lot of companies in these popular “high growth” segment have very poor balance sheets. High leverage, poor debt control.

Ofc if you are convicted it works (because others have been profiting) sure! Do your due diligence and invest your money as you wish! I cannot say it has not work for others.

Just remember “anyone can make money in a bull market, it’s the bear market that tests”

In terms of “ready to take more risks” you can certainly try to buy your own ETFs inserts was of paying double layer commissions for a robo to do it for you.

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