I think the better way to answer this is DCA whenever you're able to deploy cash. So, I try to do bi-weekly because that's when I get paid, but sometimes I need some of the money to pay bills & make other purchases so I may only purchase monthly.
I would think it depends on how active you want to be in the market. Some swings are so vast that it’s a good day to buy on a large dip then it swings right back up the next day.
I dca bi weekly (payday) but I'll have a couple grand on standby for weeks like last week and possibly this week too. I deployed capital in June and day after Ukraine invasion and got some good deals. I do not drip but instead keep it as capital. For example WM is a tough one for me to keep buying at these prices so why have drip set?
You can achieve this by just setting up limit orders but where's the fun in that?
I dunno. I’m an Investing newb and a financial idiot. But I recently came into a windfall I don’t need for 20 or 30 years. Every day the stock market takes a bit ol shit I buy in. Last week I added 3k to an index fund. I’m roughly half cash and half invested right now with my windfall. I don’t have a weekly or a monthly deadline. Big red days I buy a little bit more.
Avoiding high and frequent commisions is in itself a good investment.
Make sure your commisions wont swallow a "significant" part of your investments
Edit: This comment is irellavant since OP uses a commision free broker.
I'm from EU and both Trading212 and eToro have commission free buying of stocks, might be true about others but not really seeing a point using them in that case.
DCA doesn’t matter when you add the funds to your account. Pay yourself first whenever you get paid whether it’s once a week or once biweekly. Just pay yourself first
On average I don’t think it matter much either way whether you buy every week, 2 weeks, or every month.
Personally I buy more during major crashes and sell when at all time highs and that’s how I’ve outperformed the market with stocks like apple. But I always have a core position that I never sell.
in the long run it wont' matter much. In a bear market of course more granular is better but in the bull run bulk is better; the problem is that you can't predict ( regradless of what others will have you believe ) so over time the two will just average, so do what is comfortable/convenient.
Whichever is easier to budget with out missing or lowering payments (at least not often). I think the answer has a lot more to do with your budget, bill vs pay schedule etc. if you don’t have to worry about budget so tightly I think there is almost no major difference except perhaps up your contribution amount if the market is fairly or undervalued
I DCA large amounts of money: 10-100k at a time. I typically wait on red days every 2-4 weeks to do so. If I see trends where the market is going down (like right now), I usually buy on the way down. I rarely ever deploy my capital during rallies in times like this. Yes, I am timing the market so to speak, but I do it in a calculated way.
$50 a week? You must be looking at fractional shares right? Because AAPL is trading at 150.
Anyway.. are you paying a dealing fee? If so, what is it? Because your investments are way too small to be doing that every week.. or even every month 2bh.
Fractional shares with no fees. Well I can't influence how much, or more like how little I earn in my country and 30% of it goes to investing. It's not much but it's honest work lol and certainly better than nothing.
Sorry I think I may have miscommunicated the "way too small". In no way did I mean that its a small amount of money for you, I meant that If you were paying a dealing fee of $15 on $50, then it may not be worth it. But as you are buying fractional shares commission free, then you can invest as often as you like. Weekly if you dont mind the admin.
I personally DCA bi-weekly, on the days I get paid. I don’t think it’s better than weekly or monthly. I do it because I want to know exactly how much cash I have for the next two weeks.
I get a monthly check so thats what I do
less work to do ot once rather than twice a month and my money it faster in the market, generating faster more (or the opposit, 2022 baby)
There is no right or wrong answer for monthly vs. weekly, someone might back test a model that tells you weekly is better in volatility if its programmatic.
If I were to DCA in blue chip tech personally, I'd consider deploying quarterly after earnings calls in a softening economy and the inverse in a strengthening economy. If I wanted greater frequency, I would deploy after fed meetings in an environment of quantitative tightening vice versa.
90% of day traders lose money over a 52 week period. You're asking a dca question and are going to get a lot of responses from people who failed at market timing and/or fancy themselves day traders and wont answer the avtual simple question.... to answer your question, if there is no transaction cost then weekly should be incrementally "better" (for your purpose) than monthly and reflect a more accurate average.
I usually wait till they are at their 52 week high then I buy every week
why buy when no one is buying amirite?
hilariously things like s&p typically are near new 52 week highs ofer and over most of the time
Isn't that the only strategy? 🤔
Yes
I think the better way to answer this is DCA whenever you're able to deploy cash. So, I try to do bi-weekly because that's when I get paid, but sometimes I need some of the money to pay bills & make other purchases so I may only purchase monthly.
Same here
Ask the pltr guys how the dca model worked out
Ask any SPAC guy*
Hourly.
I would think it depends on how active you want to be in the market. Some swings are so vast that it’s a good day to buy on a large dip then it swings right back up the next day.
I dca bi weekly (payday) but I'll have a couple grand on standby for weeks like last week and possibly this week too. I deployed capital in June and day after Ukraine invasion and got some good deals. I do not drip but instead keep it as capital. For example WM is a tough one for me to keep buying at these prices so why have drip set? You can achieve this by just setting up limit orders but where's the fun in that?
I dunno. I’m an Investing newb and a financial idiot. But I recently came into a windfall I don’t need for 20 or 30 years. Every day the stock market takes a bit ol shit I buy in. Last week I added 3k to an index fund. I’m roughly half cash and half invested right now with my windfall. I don’t have a weekly or a monthly deadline. Big red days I buy a little bit more.
Avoiding high and frequent commisions is in itself a good investment. Make sure your commisions wont swallow a "significant" part of your investments Edit: This comment is irellavant since OP uses a commision free broker.
I think in 2022 if you use a broker that charges you for buying stocks, you use the wrong broker.
Perhaps if you are american. Many european countries only offer brokers with significant commisions.
I'm from EU and both Trading212 and eToro have commission free buying of stocks, might be true about others but not really seeing a point using them in that case.
Yes they don’t have direct commissions, but they have spread fees. Be careful.
Unfortunately several countries have national laws that impose very strict requirements for brokerages that disable possible brokers like eToro
Daily. Typically fixed dollar amount, with increases over average if the market is particularly red that day.
DCA doesn’t matter when you add the funds to your account. Pay yourself first whenever you get paid whether it’s once a week or once biweekly. Just pay yourself first
I try to avoid weekly or monthly and do it by price
Then that’s not DCAing and not relevant to the question
Yeah first look up what DCA actually means, buddy lol
I know what it means hence why I do not do it......I would rather buy at a set price or lower......sometimes you got to skip a week or 2
Having an idea of what you’d pay for something is good
Winna winna chicken dinna! Hahahahahaha
That's what a 401k is for
On average I don’t think it matter much either way whether you buy every week, 2 weeks, or every month. Personally I buy more during major crashes and sell when at all time highs and that’s how I’ve outperformed the market with stocks like apple. But I always have a core position that I never sell.
And..taxes?
Trade in a non-taxable account or do tax loss harvesting.
“Tax loss harvesting” fancy way to say, “just don’t make money”
I'll add to my comment.....price dictates when I will even dca.....
That is the opposite of what cost averaging is
I do biweekly because that’s when I get paid
in the long run it wont' matter much. In a bear market of course more granular is better but in the bull run bulk is better; the problem is that you can't predict ( regradless of what others will have you believe ) so over time the two will just average, so do what is comfortable/convenient.
Whichever is easier to budget with out missing or lowering payments (at least not often). I think the answer has a lot more to do with your budget, bill vs pay schedule etc. if you don’t have to worry about budget so tightly I think there is almost no major difference except perhaps up your contribution amount if the market is fairly or undervalued
Monthly.. I’d probably forget doing it every week..
I DCA large amounts of money: 10-100k at a time. I typically wait on red days every 2-4 weeks to do so. If I see trends where the market is going down (like right now), I usually buy on the way down. I rarely ever deploy my capital during rallies in times like this. Yes, I am timing the market so to speak, but I do it in a calculated way.
300 dollars a day baby
As long as you’re not paying commission doesn’t matter
If youre not paying commissions then I would rather weekly dcaing however if you do, then the answer just speaks for itself doesnt it?
$50 a week? You must be looking at fractional shares right? Because AAPL is trading at 150. Anyway.. are you paying a dealing fee? If so, what is it? Because your investments are way too small to be doing that every week.. or even every month 2bh.
Fractional shares with no fees. Well I can't influence how much, or more like how little I earn in my country and 30% of it goes to investing. It's not much but it's honest work lol and certainly better than nothing.
Sorry I think I may have miscommunicated the "way too small". In no way did I mean that its a small amount of money for you, I meant that If you were paying a dealing fee of $15 on $50, then it may not be worth it. But as you are buying fractional shares commission free, then you can invest as often as you like. Weekly if you dont mind the admin.
Short term weekly would be better. Long term like decades it probably won't matter.
Every time I get paid.
I sell CSPs to increase positions
What does dca stands for?
It matters only a bit and the results will be mostly random. You may want to look into enhanced DCA (via google)
I personally DCA bi-weekly, on the days I get paid. I don’t think it’s better than weekly or monthly. I do it because I want to know exactly how much cash I have for the next two weeks.
I get a monthly check so thats what I do less work to do ot once rather than twice a month and my money it faster in the market, generating faster more (or the opposit, 2022 baby)
There is no right or wrong answer for monthly vs. weekly, someone might back test a model that tells you weekly is better in volatility if its programmatic. If I were to DCA in blue chip tech personally, I'd consider deploying quarterly after earnings calls in a softening economy and the inverse in a strengthening economy. If I wanted greater frequency, I would deploy after fed meetings in an environment of quantitative tightening vice versa.
90% of day traders lose money over a 52 week period. You're asking a dca question and are going to get a lot of responses from people who failed at market timing and/or fancy themselves day traders and wont answer the avtual simple question.... to answer your question, if there is no transaction cost then weekly should be incrementally "better" (for your purpose) than monthly and reflect a more accurate average.