Is setting limit orders at lower prices a good DCA strategy?

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  • #130270 Reply
    USER

      For those of you that are buying stocks now, how do you buy and make the most of the dip? We all know nobody can predict how low the prices might go .

      So one strategy I can think of is a limit order at various low prices so it DCAs there. But my challenge is what different amounts should one set these up at ?

      Example. VOO , 5 shares at 465, 5 at 453 etc . Is this a good strategy?

      Is there a better one any of uou recommend ?

      #130271 Reply
      George

        Worst case scenario IMHO is 50%, and I’m not saying we will get there this cycle.

        You can work out your strategies from there.

        #130272 Reply
        Jakub

          No one knows where it falls. It’s pointless to speculate on that. If you have money, you’re now getting way more shares than you would be few weeks ago.

          People are too stuck in their recent bias – when things go up, they think it will keep going, the same thing is true on the downside.

          #130273 Reply
          Zack

            Since there is not a person on the planet that can predict the bottom the best path is to follow you personal investment plan regardless of what the market is doing today or you think it might do tomorrow.

            Don’t have one? That is your first step.

            It is pointless to try to avoid the falling knife so stay the course and invest often.

            #130274 Reply
            Aaron

              I invest the same amount of money to the same index funds every paycheck whether the market is up or down.

              #130275 Reply
              Jhon

                If the account is divided into 100%, it is safest to buy 5%-10% in the current situation

                #130276 Reply
                John

                  I personally keep to the same strategy and leave my portfolio to auto buy same amount regardless of price.

                  If my limit is buying $100 worth of shares of xyz weekly, then I’m keeping it.

                  I am budgeting and this is part of it. Just more fortunate now that if I am buying 100 say of spy, I am getting more shares now than I was few months ago

                  #130277 Reply
                  David

                    If you’ve got a diversified portfolio and one asset class is sinking, a regular rebalancing strategy allows for purchase of the sinking asset funded through growth of other assets.

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