With the dividend payment I'm not sure that's accurate but will let you confirm.
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Investing in SPY using dollar cost averaging, searching for ideas.
- Thread starter FreakofNature
- Start date
With the dividend payment I'm not sure that's accurate but will let you confirm.
I'll keep it as simple as possible. Once markets enter a bear market which is a decline of 20%, locate the date it began and plot 2 years ahead. Mark that date to start dollar cost averaging the SPY. Do that for 6 months. Then wait 2 years and begin dollar cost averaging out for 6 months.
Repeat for 20 years.
This outperforms 99% of traders and fund portfolio managers.
Repeat for 20 years.
This outperforms 99% of traders and fund portfolio managers.
Quote from FreakofNature:
I buy low and in panics, but within limitations.
I like SPY as a good investment vehicle, can't go to zero and is more than well diversified. Im too young for bonds and too conservative to trust single companies.
With that said, I would like to discuss the most efficient ways to invest in SPY using dollar cost averaging.
Keeping it simple and using a capital of say, 250,000, for discussion sakes, would buying 1 ES every 100 points lower and rolling over on contract expiration be a better way than doing so in SPY due to less capital committed in the account ?
The SPY ETF expense ratio is .09%, the best in the business, is this lower or hgher than rolling over contracts every expiration in ES?
Would love to hear some ideas here as Im planning to buy 1-2 contracts every 100 levels down.
The cheaper the better, all long term of course.
Ideas very much appreciated as I got some excess capital I need to put to work and bank rates plus inflation are just killing me.
none of my figures are ever accurate, but the point is, it's hard to beat the mkt. If it was easy, everybody would be doing it.Quote from FreakofNature:
With the dividend payment I'm not sure that's accurate but will let you confirm.
But the original question of what's better ES or SPY is also one that I would be interested in hearing someone more knowledgable than me answer.
So thanks for getting me thinking again.
Quote from Lights:
I'll keep it as simple as possible. Once markets enter a bear market which is a decline of 20%, locate the date it began and plot 2 years ahead. Mark that date to start dollar cost averaging the SPY. Do that for 6 months. Then wait 2 years and begin dollar cost averaging out for 6 months.
Repeat for 20 years.
This outperforms 99% of traders and fund portfolio managers.
Interesting and not very far from what I do.
Top was 1375 less 20% that places us at 1100 so based on your strategy the DCA began last week for a first position.
Funny enough that first position is aprox 75 points green now, albeit on just 1 unit.
Any input on how to spread the additional buys and what kind of position management to use, max risk etc ?
Thank you for your post you presented a very interesting variable I had not used before, time.
Dollar cost averaging is probably the best way to invest in spy. No need to be a hero. Start at 30, investing every year the same amount no matter what would probably bring an astonishing sum of money by the time you are set to retire.
I don't see the downside to DCA.
I don't see the downside to DCA.
Is this a buy-and-forget process? I don't see anything regarding selling. If so, I don't see there is much point in buying anything other than extreme extreme extreme lows, like under 800 or so.
Although it remains to be seen if that will still feel "extreme" a couple of years from now.
Although it remains to be seen if that will still feel "extreme" a couple of years from now.
Quote from Algo_Design_Kid:
Dollar cost averaging is probably the best way to invest in spy. No need to be a hero. Start at 30, investing every year the same amount no matter what would probably bring an astonishing sum of money by the time you are set to retire.
I don't see the downside to DCA.
The only downside, assuming you don't use margin, is that you get filled on a very small position then the rest of your money never got invested and you are now back to square one.
Some SPX Levels I had in mind for buying
1000
850
600
500
450
300
Yes, a little dramatic but better be safe than sorry, the idea is to not lose.
1000
850
600
500
450
300
Yes, a little dramatic but better be safe than sorry, the idea is to not lose.
What happens when you retire if the index is at 150 or lower?.