Hello to all readers. We meet again on a somewhat pertinent investment topic.
Because after all this time I have plenty of time left each day. In addition to having read a book that appears to be polished to be able to organize ideas and use your time more efficiently, this provides an opportunity to sit back and listen and study various information about investing in the Thai stock exchange.
This topic will be written understanding my own experience. If any information is wrong, I apologize here.
What is DCA?
This question is probably the most heard in recent years. As more people pay attention to saving and investing
The meaning of DCA is that you can find it on Google because it has a wide variety of people.
For me, a DCA is a gradual purchase of the same amount of assets each month or week, or even as a gradual daily purchase.
Why did DCA leave?
Because investing is like life Therefore, investing for life is something that every ordinary human being should do.
If you have a billion Buying valuables seems like an easy task.
On the other hand, if you are a salaried man, you will be able to own certain assets. It may not be easy to spend all your money on just one thing.
So, it is the reason that Accumulation or DCA is the answer to your valuables as a billion investors.
How does DCA work?
DCA usually occurs in the stock market. You can open a share account at any bank in Thailand. Or open a share account at the same bank where you have a deposit account.
After opening an account, you can reload your account to start doing DCA right away.
In general, DCA is a function of the popular “Streaming” application.
When you have successfully reloaded the stock account, then DCA can be started using the general principle: you can define that.
What stocks will you buy gradually?
Little by little you will buy those shares. With what amount per month (The minimum purchase is 100 shares, so calculate enough money)
You want those shares to be bought. Every day of the month, for example, every 1/5/15/25 of each month.
After completing the setup, you have a duty, just wait for the time you have chosen. As you must remember, on each of those dates, funds will be debited from your stock account to DCA.
Don’t forget to also recharge enough for the DCA.
Is DCA really good?
Because DCA is better than being idle, not investing.
If a lot of DCA time is given (it is an investment that takes time)
If you are thinking of buying that asset for a lump sum, then DCA is better.
Is not true
If you want high returns for a short time (DCA is wrong)
If you have enough money to buy that asset You don’t need DCA (you’re already rich)
If you have a DCA with assets that continue to lose value (such as throwing money away)
Advantages and precautions of DCA
With a DCA, you can become the owner of a high-value asset by gradually building it up. (Low investment takes a long time to accumulate).
DCA will make assets less expensive. Because every time there is a purchase, the price of that asset can be cheap or expensive. Making that cost an average cost
The longer the DCA, the value of the asset only tends to increase. Increase wealth
But keep in mind that a good DCA is a good asset. (Therefore, there must be a detailed study of the assets that will be DCA each time)
It continues to drive DCA to assets that have a tendency to decline in value. Which resulted in a loss of the investment period also caused losses.
Presenting DCA from real experiences
And then it gets to the heart of the article. That led to the last paragraph of the article. I have been in the field to save DCA stocks myself for about 3-4 months so I would like to share my experience. As a guide for novice investors
As previously written, a typical DCA requires a date each month. For the system to buy accumulated for us Difficult conditions that can be defined as
The DCA is assigned every week (weekly).
Make DCA monthly (monthly) * Popular
DCA is required every 1/5/15/25 of every month.
Of course, a typical DCA will allow you to buy the stocks that interest you. At a price that is not too expensive But because sometimes Buy once a month and set a specific date. It may not be the best option for DCA.
The author has made the DCA in both normal and new formats. Both are separate accounts Making it possible to see the difference quite clearly