How To Dollar Cost Average UP
Long term, people who DCA down fail...so do the opposite! A clear explanation on HOW to compound winners
You’ve seen it…we’ve all seen it... “dollar cost average BRO!” Meanwhile the influencers pumping the DCA content out hasn’t experienced a profit in months and look like they live out their Mom’s basement (no offense to anyone living in their Mom’s basement 😅).
Lets start this article off with: I did not come up with DCA UP out of thin air. Its not me trying to be “different” or trying to get clicks or views for engagement…I have alternative ways to do that 😏. And to be totally fair…I use to DCA. I also was a victim of this toxic bullshit buzz phrase on the internet. The reason I am saying to STOP dollar cost averaging down…is because ALL of the greatest traders and investors advise against DCA. Not a single investor in Unknown Market Wizards1 dollar cost averages. Not one. Mark Minervini, 2 time U.S. Investing Champion, openly mocks the DCA crowd as well. Paul Tudor Jones, now worth $8.1 billion2, began his investing journey in the 1980’s, and held a sign above his computer “Losers average Losers”. Don’t be a LOSER!
Before we get into the meat and potatoes of how to DCA UP, the most common retort I get is: “Warren Buffet dollar cost averages.” No he doesn’t. He also, largely, lump sum invests in what he considers great companies…typically in periods of market panic. Additionally…he started investing in 1942 at the age of 11.3 Do you think the market has changed at all over the last 83 years? And…do you work with billions of dollars? His approach and strategy was fine…but he has operated in what I like to consider the “golden years economy”…remember, boomers had no issue buying homes…Gen Z has had great difficulty…a clear indication the economy is different generationally. And how one handles moving a billion dollars is very different than how one handle’s moving $10,000 or $100,000 around the markets. The retort is pathetic and largely uneducated. You have so much more flexibility than Buffet and you live in a different time period.
So how do we Dollar Cost Average Up…let me show you, with pictures… with a trade we actually did here on Substack…