When stocks drop, starting dollar-cost averaging (DCA) can help avoid emotional investing. I am particularly worried about chip stocks, as September began poorly with significant declines in $NVIDIA, the $PHLX Semiconductor Index, $Micron Technology, and $Intel. I didn’t have a DCA plan previously, but investing in ETFs that include these stocks seems safer. Any ETF recommendations? Also, would you like to discuss the best frequency and strategy for DCA investing?
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Dollar-cost averaging (DCA) with individual stocks is only effective if you have a solid understanding of the fundamentals. For index funds, however, it as a good strategy.
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You are considering it too much. Purchase VOO or VTI and make the call. I would otherwise take a big sum and forget about it which is what I did with the money I got when I sold my firm. I only DCA because I have to with each paycheck.
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What qualities must the platform I select have if I want to do DCA fixes? Aside from auto-invest and 0% commission?
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A low contract fee is important, if the fee is too high, it can negatively impact your experience if you trade frequently. Additionally, the platform should allow you to set custom order expiration dates and conditions for greater flexibility.
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I had the same question before. I am using Webull, and it seems like during extended hours, you can only trade limit orders—no stop orders or auto-invest options available. The low contract fee is the only thing keeping me from quitting.
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It is a common belief that DCA performs best in uncertain market conditions. It might be a sensible strategy given the uncertainty we currently face. Just remember to keep an eye on market conditions and balance your investments with other tactics.
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