If you haven’t seen my Facebook Live about the dollar cost average effect yet I suggest that you watch it on my page because there you get a compact lesson about the dollar cost average effect.
In short the idea is that you regularly buy shares of your chosen investment at a set amount and time (i.e. $500 every month). That way you will accumulate shares over a period of time at an average price while the asset price can go up or down.
No need to worry about timing the market and anticipate price moves. Sometimes you get to buy when it’s low and sometimes you may buy at a higher price.
The only thing that really matters for you is that on average you will make a profit in the long run.
That’s how you take out the emotions that cause many investors to take losses when they wouldn’t have to and save yourself a lot of time and headaches by simply following a proven system.
Of course this is just a part of the complete strategy that my system is built upon and that’s been making me steady profits for a long period of time. If you are interested to learn more about the system I use to invest strategically check it our right here.
Watch the full live recording (use Chrome browser):
Why the Coronavirus is good for investors, shown with an example using the dollar cost averaging method.
Posted by Lukas Xu on Tuesday, 17 March 2020
If the video doesn’t show, you can watch it directly on Facebook.