This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Does dollar cost averaging actually work?
Gary Chan – Many peeps recommend you “time” the market with dollar cost averaging to mitigate your losses for your investments.
But think about it.
Who usually wins in the investing game: The person who has been in the longest or the person who has been in the shortest amount of time?
Mostly, it’s the people who are in the game long-term (i.e., Warren Buffet).
DCA’ing is a solid strategy if you don’t have all the resources to do your dump sooner rather than later.
But if you’re investing $100 or $1,000 a month and want to reap the most significant rewards, aim to do your investment dump at the beginning of each month.
Set up automatic investment payments so you don’t even think about it.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.