Investing in SPY using dollar cost averaging, searching for ideas.

[FreakofNature]

Quote from SrRuthenate:

What happens when you retire if the index is at 150 or lower?.

The dividends better be enough for food then

 

[oldtime]

Quote from FreakofNature:

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.

so you have 1 unit on in AUG, then the same amount each month thru JAN. Then cool it for 2 yr, and do it again, so next time would be Feb thru JUL.

no stops

So that would be about 16% a month of your stash every month for six months every two years.

Not sure if waiting for a bear mkt has anything to do with it. Tossing the I Ching everyday until you get a 64 would probably also be a good place to start.

 

[baro-san]

Life's lesson is: adapt to survive, don't and you'll die!

Buy and hold in a bear market is a bad strategy. It's simple: if you expect the prices to not go up, don't buy!

 

[oldtime]

Quote from oldtime:

so you have 1 unit on in AUG, then the same amount each month thru JAN. Then cool it for 2 yr, and do it again, so next time would be Feb thru JUL.

no stops

So that would be about 16% a month of your stash every month for six months every two years.

Not sure if waiting for a bear mkt has anything to do with it. Tossing the I Ching everyday until you get a 64 would probably also be a good place to start.

the whole secret is the part about 20yr.

 

[oldtime]

Quote from SrRuthenate:

What happens when you retire if the index is at 150 or lower?.

that's why about 15 years before you "retire" you start diversifying out of stocks.

 

[SrRuthenate]

Quote from FreakofNature:

The dividends better be enough for food then

It seems then, that profits are made or lost on the exit, not on the entries.

 

[SrRuthenate]

Quote from oldtime:

that's why about 15 years before you "retire" you start diversifying out of stocks.

You'd be close to dead by then. I suggest you donate all that money to me today instead of doing that abhorrent averaging and worrying if the price is down more.

 

[Algo_Design_Kid]

Quote from FreakofNature:

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.

I'm not sure I understand. I thought DCA was investing the same amount of money for example every year?

No matter price.

 

[oldtime]

Quote from baro-san:

Life's lesson is: adapt to survive, don't and you'll die!

Buy and hold in a bear market is a bad strategy. It's simple: if you expect the prices to not go up, don't buy!

I thought it was "Better to die on your feet than live on your knees."

But anyway, that's why I never buy gold, not since 1987, because I never expect it to go up. It was too high at $350 and it's too high at $1700.

I never hold in a bear market. Once it's gone down 20% I sell. Then when it's gone back up 20% I expect it to go up so I buy.

Thanks for that lesson on life. (BTW, as far as I know, everyone who has ever lived has died.) There is however some controversy concerning Enoch.

 

[Random.Capital]

Quote from Algo_Design_Kid:

I'm not sure I understand. I thought DCA was investing the same amount of money for example every year?

No matter price.

It is. What he's describing is a form market timing, not DCA.