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Dollar Cost Averaging
Posted on 10/20/14 at 10:58 pm
Posted on 10/20/14 at 10:58 pm
Is there a particular day of the week you opt for?
For example, accumulation a mutual fund within a Roth. Exchanging $275/week for the next twenty weeks. Mondays? Seems the only historically "bad" day I could find.
In the long run I realize it will have very little to no effect, really just curious if you guys have a day you schedule to buy. Also, a related question, say the market drops 300pts in a day; if I place an order that afternoon, will it be fulfilled at the close price of that day, or the next day. I've thought about DCA just based on off days, but if the transaction doesn't go through until the following day it's not an effective way to accumulate.
Not trying to time the market, but if the are some relatively simple advantages to keep in mind when DCA within mutual funds I'd like to know.
For example, accumulation a mutual fund within a Roth. Exchanging $275/week for the next twenty weeks. Mondays? Seems the only historically "bad" day I could find.
In the long run I realize it will have very little to no effect, really just curious if you guys have a day you schedule to buy. Also, a related question, say the market drops 300pts in a day; if I place an order that afternoon, will it be fulfilled at the close price of that day, or the next day. I've thought about DCA just based on off days, but if the transaction doesn't go through until the following day it's not an effective way to accumulate.
Not trying to time the market, but if the are some relatively simple advantages to keep in mind when DCA within mutual funds I'd like to know.
3
Posted on 10/20/14 at 11:13 pm to TigerDeBaiter
Worry more about how properly diversified you are. The big secret is there is no magic answer.
And mutual funds trade at market close, so timing during the day wouldn't matter. Stocks, ETFs, etc... trade intraday.
And mutual funds trade at market close, so timing during the day wouldn't matter. Stocks, ETFs, etc... trade intraday.
Posted on 10/21/14 at 9:42 am to TigerDeBaiter
Sharebuilder does it for me on Tuesdays.
So there's that.
So there's that.
Posted on 10/21/14 at 9:55 am to TigerDeBaiter
When I initially set up my Roth, I opted for auto draft on my pay day.
After several months, I opted out and now try to look for negative days (mini dips) or after a series of down days. I make the order before the close of the market and receive the opening morning's price.
This works for me as I track the market daily and can afford to buy before a given payday.
This is definitely small-ball tactics, but I'll take any advantage I can get.
After several months, I opted out and now try to look for negative days (mini dips) or after a series of down days. I make the order before the close of the market and receive the opening morning's price.
This works for me as I track the market daily and can afford to buy before a given payday.
This is definitely small-ball tactics, but I'll take any advantage I can get.
Posted on 10/21/14 at 10:50 am to Cmlsu5618
I'm all in the 2060 vanguard target, so allocation is pretty basic right now.
Posted on 10/21/14 at 10:50 am to Oenophile Brah
I agree, very small advantage if any... My yearly max is in the money market account right now so I have the ability to choose any day as well. Probably will just stick to Mondays as it seems easy for now, although I do look at the market daily as well.
I've heard paydays are the worst to buy. I think it's been referenced as the "401k effect" somewhere I believe.
I've heard paydays are the worst to buy. I think it's been referenced as the "401k effect" somewhere I believe.
This post was edited on 10/21/14 at 10:54 am
Posted on 10/21/14 at 10:52 am to TigerDeBaiter
Me too baw
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