Dollar Cost Averaging Explained (but with a much improved performance)

Dollar cost averaging is a common approach to investing, where many people invest into something on a monthly basis, thereby getting an average overall price.

I too use dollar cost averaging on the indexes but with a more efficient approach that achieves a higher annualised return and has less drawdown.

I use it in combination with my singular stock trading strategy, which when combined, creates a highly effective wealth building approach.

Links:-

Stock Trading videos:-

Investing videos:-

As a professional trader I have consumed hundreds of financial books and endured countless hours of self education. My hope is that this channel will reduce the learning curve duration of many aspiring traders by providing the key information in a concise and enjoyable manner.

[JENNIFERSONIA]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[ccbill]

Thanks for the great teaching and sharing! You have introduced a few strategies like a) dual monthly + weekly macd for relatively stable stock like BRK, b) dual weekly + daily macd for volatile asset like bitcoin, c) weekly macd strategy for FANG stock, d) weekly macd + 20W MA strategy for general stock, e) monthly macd + RSI for gold. If possible, love to see in future videos on the pros and cons of these different strategies and which one is more suitable for index ETF (like SPY, QQQ) investing. Many thanks.

[jasonsalmon]

You have some of the best advice about investing on youtube that is easy to understand and well researched, I've been trying to find good advice on how to average up on a stock with profit, but haven't found any good video on this subject. If you think your community would like to know more and your able to help its a video that could help your channel I haven't seen any good video on this idea.

[Mehrdad]

Excellent . If index fund works (conversation with the great soul of Mr. Bogle is free), this is even better. What is very appealing is that this chanel with so much materiel and presentation of different strategies about trading does not miss this totally different approach for investment. Big thank, your work is very appreciated.👍👍👍

[richardlionheart]

This is the video i needed - thank you! no flashy watches, cars, banks of screens, babes, you on a learjet etc

[przemoj]

Hey there,

I'm just following my derivative of this method, just buying US and European sector + Japan, Asia, Emerging Markets ETF only when they are below 200d SMA [at the end of the month], and the more significant divergence from the moving average, the more I buy and the more money I put in an ETF.

[davidreichert]

I think it's fine to do this with individual stocks provided that you combine with fundamental analysis of the stock that is well established and have high confidence in its future, and exit the position should the fundamentals deteriorate.

[DarkBullCapital]

you still can apply breakout strategy to the indices with less amount.

[vampirelawyer]

One of the best videos I've ever seen. I use QLD to buy when market crashes. However, I use a formula of roughly 45% QLD, 45% SCHD and 10% bonds. I then rebalance yearly to "lock in" profits from the leveraged position. I actually do have small positions in LABU and SOXL also, that i've been buying last few weeks and plan to hold these till they get back sky high.

QLD in my opinion is the best form of leverage and much easier to manage than LEAPS

[chuckharkes]

This is simply top shelf. GREAT video!

[fidelisokodu]

I've always expected to be seeing values here, and you keep proving me right.

[donniereidjr]

Shaboom! If you heard that it was the sound of my jaw hitting the floor in shock.
This was an amazing video. My goodness I have missed out on so many investment opportunities.
WOW!

[Noaxe_Tegrinde]

Very well put together as usual! :)
As per your Warren Buffet quotation where he said ''if you enjoy spending 8hrs a week on investing then do it!!'' Well I do enjoy it very much (don't like crosswords) and as an old, late starting, fellow your otherwise invaluable presentation and strategy is of no use to me! :)
Strangely, having said that, I enjoy seeing what I should perhaps have done 40-50yrs ago. Thankfully, and effectively, up to a point, my company pension did so! :)
Where were you and the WWW fifty years ago, eh?
Key Pup the good work.
NioAxe

[williamkz]

Thanks Gareth. Very sound as always. (The Russell 2000 ETF (IWM) looks quite attractive...)

[MisterM]

I'm not sure if I understand it correctly. On the example at 3:00, you invest at the start of 2016 then again in late 2018. That's a period of almost 3 years where the index is rising and you're not putting any money in - how is this a better strategy? It would be more clear with a worked example to compare the two approaches e.g. how much you're investing at each of the two dips vs how much as a regular monthly amount. It looks like with this "timing the market" approach you're losing out on a lot of growth and compounding.

[NoGainNoPain]

Always great videos. I'm binge watching them all and it's fascinating how you can digest everything so easily. Thanks for that. I'm having trouble understanding your gentle x2 leverage. Which mechanism are you using? Dipping into your margin account and buying x2 the cash you're holding? Cheers

[Cromatox]

How do you allocate your funds for this method? If i got $1000 for investing each month. Would i DCA 100% off it until the market drops and switch method? Or would i DCA 50% and save 50% for this other method?

[MrAfricanpilot]

One of my favorite videos! When you talk about leverage, could I use a leveraged fund such as TQQQ for a longer term buy or is this instrument only good for shorter term gains?

[sp-yeht]

Nice video..btw i made my first killing by dollar cost averaging in diversified funds only..it surely works.. Only thing i started adding a bit early with a 10% fall only..☹️.
One thing i wanted to ask is do you consider nasdaq or faang or any particular sectoral etfs/funds as diversified?

[mooersproducts]

To possibly create wealth good enough to retire, diversification is indeed necessary to achieve your goal. I realized the secret of creating wealth with the guidance of a financial professional and would love to share my ideas with the ignorant ones here