Hi everyone,
I’ve been in the market since 2020 and I’m looking for advice on dollar cost averaging (DCA).
If you had 40k to invest across 5-6 stocks, how would you approach DCA?
Over what time period would you deploy the capital?
Does the DCA timeline depend on the stock, or do you follow a fixed schedule?
Some of these stocks are already down ~20% over the past 5–6 months, which makes timing even harder.
My biggest problem is thinking I’m buying the bottom when I’m not. I know timing the bottom is nearly impossible, but even using charts, I still deploy capital too early and end up with no cash left while the stock continues to fall.
Are there any practical rules or frameworks you use to manage this especially to avoid deploying capital too fast?
Appreciate any insights.