Do you set $X amount aside for dips and dca after that?
Do you do a % of your weekly contribution towards saving for dips and a % to dca?
Do you just stack cash for dips and dont DCA at all?
Do you just dca your whole contribution and when dips happen you dig deeper into your pockets for extra money for them?
I always thought time in market beats timing the market because stocks go up more than down? I just wanna know how real people implement this.
I've always done employer matched rrsps(401k in the us?), but in the past year switched jobs and transfered a lump sum of those rrsps to a self guided account, and have really been enjoying investing, so I wanted to start adding extra money to a tsfa(Roth IRA in us?) weekly.
Everyone says buy the dips, but I wanna know how you guys practically implement this.
byu/Merely-a-Flesh-Wound instocks
Posted by Merely-a-Flesh-Wound
17 Comments
Real bad idea before Great Depression II
The market has always gone up…pending how patient you are. Technically we always buy the dip. 😉
Only I buy is shorts and DCA on them. Not covering them till seeing strait of hormuz opened for +1 week at 2/4 daily ship number
No, you shouldn’t get focused on “buying the dip.” Just invest on a regular cadence and don’t overthink it.
Me personally I always have 30% of cash instantly accessible. During this conflict I reduced that to 15% and bought more stocks.
Timing the market is not possible in the long term if you are not insider, but if you have a solid stocks and they go down and you do DCA, you buy more when it has gone significantly lower. It’s not really timing the market
Buying regularly through the ups and downs will produce the best results on average. Timing by buying dips is more likely to lose out on potential gains.
Dunno why you think “everyone” says that
Time in market > timing the market
Sure you could try and catch the dip at its lowest point and sure you could potentially make a killing doing that.
But it’s a lot easier and safer to just buy a set amount on a regular cadence.
“Everyone” is wrong.
Buying dips is a short-sighted strategy. How do we know if a 2% dip will turn into a 5% dip will turn into a 20% dip?
DCA ensures you take advantage of the dips. It’s the opposite of trying to time the market.
If you do insist on buying dips, then the best way is to wait for the dip to end and uptrend to resume. Most will not do this, because they believe they “missed it” and won’t pay higher prices.
Yesterday confirmed a new uptrend, but stocks are 8% off the low of the “dip.” Yet, now is a safer time to buy stocks than last week.
every wednesday $500 goes into VOO that’s it
Practically, I sell equities I have low conviction in at a low. And then I sit on the cash for a little bit until we hit another local low, and then move the cash into a different equity that proceeds to then shit the bed.
You could buy a share of Voo every time it drops 1% in a day
Most of my investments are DCA, save for my ROTH which I do in January. I try to DCA on Monday’s, as those are historically red days.
However, I do keep some cash on hand for significant adjustments, watching for at least -2% days on the whole market. I bought in with the tariff drop last year and again with this Iran conflict. When this sub starts freaking out, start buying lol.
Still, these are all long term investments that I don’t mind dropping further.
People keep saying don’t buy the dip just buy at your set schedule. Here’s what I do. I buy on my regular schedule in additional to buying the dip. No one knows when the bottom is but I buy when there’s fear and bleeeing red. It’s always a better price buying at a discount than when it’s on its way up. No one said to time the bottom, just get a discount on it. Period. Waiting for your next schedule auto buy to kick in and you miss the dip. Why not just buy more and also continue your regular DCA set schedule? Unless you’re dead broke with no cash to buy an additional dip, I wouldn’t understand why wouldn’t you.
I also buy on margin when there are big dips. Typically a small % of my portfolio that I can safely pay off in less than a year.
Easy, I buy when the market dips, and then sell when it’s high
Contribute regularly and move on. It is easy to look at historical data and see where the bottom was. In real time, it is hard to predict. A 10% dip today can be still higher than what it was 8 months ago.