06-08-2015, 11:16 AM
Dollar cost averaging: so buying constantly, no matter what the prices are. Some people do this in a "pure" way, $1000 dollars everytime they get paid etc. I personally try to adjust to the market: for example for the past few months I have been buying with less than I could have. This might be the first month where I'm going to buy a bit more and I do have cash on hand should the markets fall more.
So yes, it's a bit painful to see the value going down but in reality, for me, it's just an opportunity to buy more. It all depends on your overall goal and time frame etc. but I'm sure that most people here will tell you the same. When the prices are down, buy more. You liked PG when you paid say $85 for it. Why wouldn't you like it now that you can get it for $77?
I guess to sum it up: I can't predict where the markets are going. So I buy constantly, using more cash when I think the prices are good and less when it seems expensive. Whether we are diving down towards the bottom or hitting all time highs, in most cases I just sit on my portfolio and smile at the end of the month when I note down the dividends received.
So yes, it's a bit painful to see the value going down but in reality, for me, it's just an opportunity to buy more. It all depends on your overall goal and time frame etc. but I'm sure that most people here will tell you the same. When the prices are down, buy more. You liked PG when you paid say $85 for it. Why wouldn't you like it now that you can get it for $77?
I guess to sum it up: I can't predict where the markets are going. So I buy constantly, using more cash when I think the prices are good and less when it seems expensive. Whether we are diving down towards the bottom or hitting all time highs, in most cases I just sit on my portfolio and smile at the end of the month when I note down the dividends received.