This is a friendly reminder, something I do about every 6 months…to not buy the dip. To not dollar cost average down. We have had hundreds of people jump aboard my train of lunacy…buy buying things going up, dollar cost averaging up. And the vast majority have been pleasantly shocked by this approach. I was too, my first time ~3 years ago. I too am guilty of buying dips and dollar cost averaging.
I share this reminder because I am yet again, in another bull market, seeing the exact same buzzphrases that has been repeated by the masses for decades…which has resulted in a 95% failure rate for traders1. If buying the dip was so successful, and dollar cost averaging was so successful…then why do so many lose? This is an easy problem to remedy. Instead, lump sum investments that are trending in your favor!
Number of great traders that dollar cost average: 0. Or at least I have not come across any in my readings. Don’t be one of the new investors (or creators) that inevitably builds these bad habits, corroborated by a few successes, that ultimately disappears in the end.
That said: market is looking a bit better today, we shall see if trends are reversing, and if so, we can start picking up some new positions. Stay tuned!
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