βͺοΈ What is it?
βͺοΈ Why is it so effective?
βͺοΈ How it looks in reality?
βͺοΈ Three types
βͺοΈ When to use DCA & when do not
βͺοΈ DCA out
βͺοΈ Advanced techniques π§
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βͺοΈ What is it?
Book explanation:
Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across multiple purchases in an effort to reduce the impact of volatility on the overall purchase
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In my own simple words, the trick is, we ain't trying to catch the precise bottom or the top.
We are merely trying to build an average price at a logical place with multiple buys or sell orders while being very close to it and still gaining immense profits.