Comments on: I Dollar Cost Average into My Investments a Bit Different http://www.thedividendguyblog.com/i-dollar-cost-average-into-my-investments-a-bit-different/ One Guy's Journey to Passive Income Through Dividend Investing Fri, 10 Feb 2012 13:02:29 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: W.Gadoury http://www.thedividendguyblog.com/i-dollar-cost-average-into-my-investments-a-bit-different/comment-page-1/#comment-55304 W.Gadoury Sat, 28 Nov 2009 05:10:01 +0000 http://www.thedividendguyblog.com/i-dollar-cost-average-into-my-investments-a-bit-different/#comment-55304 Concerning dollar cost averging, I've been using a technique - as an individual investor - that I've seen reference to, but apparently doesn't have wide following. Its basicall modified DCA. I started by plotting hi and low averages of the S&P, experimented with various middle-buffers (between the hi and low averages) and only bought above the hi-average line, and only sold below the low-average line. Trades were mostly mutual funds, long term only to avoid short term tax consequences, or retirement funds where there were no short-term consequences. I've been doing this for 30+ years and have have had net positive results. Haven't had time to do the math, but looking back the results have been good. I don't have time or inclination to do the math, other than insuring the sales profit on a purchase is in the above-average zone. These days I've shed the hi/low average lines and just keep watch on the S&P moving averages. The one I focus on (200, 100, 50, 20 day moving averages) depends on the prevailing volatility. My goal is to have a trade a week, when the S&P is sufficiently higher or lower that the appropriate length moving average. Its quick, easy and gets results. I should note, however, that this strategy did not save me from the 2007/2008 sell off, but the end result was "less worse" than I would have had experienced otherwise. Maintaining long term focus during this difficult period has been the "main thing." (Remember, the main thing is to keep the main thing the main thing!). Also, decreases in share value is not a loss, only a squeezing of value. Like a sponge that gets squeezed then bounces back to normal shape when "unsqueezed." Cheers. wrg Concerning dollar cost averging, I’ve been using a technique – as an individual investor – that I’ve seen reference to, but apparently doesn’t have wide following. Its basicall modified DCA. I started by plotting hi and low averages of the S&P, experimented with various middle-buffers (between the hi and low averages) and only bought above the hi-average line, and only sold below the low-average line. Trades were mostly mutual funds, long term only to avoid short term tax consequences, or retirement funds where there were no short-term consequences. I’ve been doing this for 30+ years and have have had net positive results. Haven’t had time to do the math, but looking back the results have been good.
I don’t have time or inclination to do the math, other than insuring the sales profit on a purchase is in the above-average zone. These days I’ve shed the hi/low average lines and just keep watch on the S&P moving averages. The one I focus on (200, 100, 50, 20 day moving averages) depends on the prevailing volatility. My goal is to have a trade a week, when the S&P is sufficiently higher or lower that the appropriate length moving average. Its quick, easy and gets results. I should note, however, that this strategy did not save me from the 2007/2008 sell off, but the end result was “less worse” than I would have had experienced otherwise. Maintaining long term focus during this difficult period has been the “main thing.” (Remember, the main thing is to keep the main thing the main thing!). Also, decreases in share value is not a loss, only a squeezing of value. Like a sponge that gets squeezed then bounces back to normal shape when “unsqueezed.”
Cheers. wrg

]]> By: Mickey http://www.thedividendguyblog.com/i-dollar-cost-average-into-my-investments-a-bit-different/comment-page-1/#comment-55058 Mickey Wed, 30 Sep 2009 03:27:54 +0000 http://www.thedividendguyblog.com/i-dollar-cost-average-into-my-investments-a-bit-different/#comment-55058 Nice piece. I think dollar cost investing works well provided the investor who is profiled understands the possible different outcomes that can result from market direction & frequency used compared to lump sum investing. Volatility of the investment instrument used is also a highly contributing factor on the returns derived from this strategy. With a basic understanding of markets, investor should consider actively shifting between lump sum investing & dollar cost averaging throughout their investing horizon. Mickey My Informative Article: <a href="http://www.thewhiskytrench.com/index_files/InvestingArticle7.htm" rel="nofollow">Does Dollar Cost Averaging Work?</a> Nice piece. I think dollar cost investing works well provided the investor who is profiled understands the possible different outcomes that can result from market direction & frequency used compared to lump sum investing. Volatility of the investment instrument used is also a highly contributing factor on the returns derived from this strategy. With a basic understanding of markets, investor should consider actively shifting between lump sum investing & dollar cost averaging throughout their investing horizon.

Mickey
My Informative Article:
Does Dollar Cost Averaging Work?

]]> By: sell my house fast http://www.thedividendguyblog.com/i-dollar-cost-average-into-my-investments-a-bit-different/comment-page-1/#comment-40756 sell my house fast Sat, 31 May 2008 22:42:26 +0000 http://www.thedividendguyblog.com/i-dollar-cost-average-into-my-investments-a-bit-different/#comment-40756 <strong>sell my house fast...</strong> irrespective of the geographical boundaries. The American Dream refuses to diminish in sheen and size despite the lingering subprime dark clouds. However... sell my house fast…

irrespective of the geographical boundaries. The American Dream refuses to diminish in sheen and size despite the lingering subprime dark clouds. However…

]]> By: I Dollar Cost Average into My Investments a Bit Different | passive income http://www.thedividendguyblog.com/i-dollar-cost-average-into-my-investments-a-bit-different/comment-page-1/#comment-33689 I Dollar Cost Average into My Investments a Bit Different | passive income Sun, 02 Mar 2008 21:20:49 +0000 http://www.thedividendguyblog.com/i-dollar-cost-average-into-my-investments-a-bit-different/#comment-33689 [...] Read the rest of this great post here [...] [...] Read the rest of this great post here [...]

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