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People often write this as if investing in a "crashed" market is something trivial to spot. Sure you might be able to see prices today are lower than a week ago, but how do you know they aren't going to continue decreasing yet another month?


Dollar cost averaging is a decent strategy in a bear market. You basically buy more and more shares for the same money as it goes down. You’ll have bought more shares at the bottom them at the top.


In other words, set up buying on a schedule and stick to that schedule, purchasing the same dollar amount each month. Don't deviate from your schedule because you cannot time the market.


Why does it matter if they are decreasing next month? The goal is not to buy at the bottom of the market (if I knew how to spot market bottoms, I'd be on my private Caribbean island), but rather to keep buying into the productivity of the entire economy.




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