Imagine you want to buy stickers, but their price changes daily at the shop.
Instead of blowing all your R100.00 per week.
What happens in practice:
Week 1: The price is steep. Your R$ 10 buys few stickers.
Week 2: The price dropped. Your R$ 10 now buys way more stickers.
Week 3: The price ticked up a bit. You buy an average amount.
Why is this good?
You don't need 'luck': You don't have to hit the exact day when the price is lowest.
Average Cost: By the end of the month, you'll have a 'weighted average' price. The cheap buys balance out the expensive ones.
Less Stress: You won't panic if the price drops right after you've bought, because next week you're gonna scoop up more at a better price.
In a nutshell: DCA is the habit of investing the same amount on the same day of the month, no matter what happens in the market.
D O Y O U A L R E A D Y H A V E A F I X E D A M O U N T T H A T Y O U C A N S E T A S I D E P E R M O N T H T O S T A R T Y O U R I N V E S T M E N T S T R A T E G Y ?
⚠️ REMEMBER, THIS CONTENT IS FOR EDUCATIONAL PURPOSES ONLY AND IS NOT AN INVESTMENT RECOMMENDATION.
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