Asked on 02 Mar 2020
I invest a good portion of my monthly salary into StashAway as a form of forced savings (automated monthly after my salary comes at the end of the month). Recently I was burned quite badly as I entered the market right before the big dip in us equities market that happened end Feb. Is there a better way for me to enter/invest during this period?
Based on what you said, you are already doing DCA by investing every month. In that case, you don't need to worry about timing the market! Just be patient and continue doing your monthly investment, and your returns should turn positive again in the long term.
However, if you are putting such a large portion of your salary that you are going to have trouble paying for everyday expenses, then I would advise you to relook at your allocations. Ideally, you only want to put in money that you wouldn't need for the short to medium term (at least 10 years). General rule of thumb is 50-30-20 allocation, but you should adjust as needed.
And if you are unsure what DCA is, Seedly blog actually has a great article explaining what it is and why DCA takes out the element of having to time the market.
Sorry to hear about your experience...
I think in regards to investing, it's very hard to time the market, but what is more important is to have the discipline to continue investing. As what Warrent Buffett said, Our favourite holding period is forever.
All investments are long term in nature, so do not be disheartened, because there is light at the end of the tunnel.
Pascal S, MBA Graduate at Singapore Management University
Answered on 03 Mar 2020
I have read some valuable answers from other community members.
Also, sorry to hear abou...
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