Dollar-Cost Averaging VS Lump Sum Investing | Which is Better in 2022?

[@ZietInvests]

📌Start investing with Interactive Brokers → www.interactivebrokers.com/mkt/?src=zietPY2&url=%2Fen%2Fwhyib%2Foverview.php%3Fnored%3Dt

[@sasbadiwan7857]

Instead of blindly DCA $10 daily, do it with a bit of Technical Analysis signals. Count the days and save up that cash daily until you see a buy signal. Once you see a buy signal (for example a bullish cross on a daily chart) then you put all the DCA cash that you save up previously and put in on that best price. Now that's a combination of DCA + Lump Sum. Win-win

[@ZietInvests]

Love this idea! I like to buy at support line actually ;p

[@jagakuna1989]

so don’t buy whey market is bearish ?

[@sambadiop4740]

Thank you Ziet for this video ; explaination is clear !

[@ZietInvests]

I’m really glad you liked this! 😊😊

[@DarthTrader707]

Love your channel, but are you confused by the concept of DCA? You say "If you have 100K to invest, should you DCA or lump sum?" DCA really isn't about drip feeding your buying. If you have the 100K and don't think you can be one of those rare (VERY rare) market timers, and your horizon is long term, just go all in on good companies at once. Some advocate buying the dip, buying retraces to MA's and support. Certainly not John Bogle or Peter Lynch, but some think a few percentage points can be picked up this way. DCA is about doing exactly NOT that, when you have more money to invest. DCA isn't the same as averaging down. It's just making regular investments into a security, or better for the average investor, an index fund or ETF. If people are confusing DCA with "timing the market" and waiting for a retrace to buy, then it's no surprise studies show that lump sum beats DCA.

[@ZietInvests]

Hi Sebastian, appreciate your feedback and I see some points in your argument, but the whole argument in this context lies within the risk management of the "100K", not everyone is able to stomach the 100K dumped all-in and it may end up with panic selling and more buy-highs-sell-lows. Now, does that mean people are perfect with DCA and won't even try to time the market? Obviously no, like it or not we tend to time the market even as our emotions are swayed left and right in times like these, hence the conclusion of this video, consistently DCA (maintaining the investment principle/consistency) + dip-buying opportunity (indirectly means have some liberty to time the market if that helps one to feel "in-control"), after all emotions can and will always be our downfall in anything we do! It's not meant to be a 100% win rule but more of a guidance on how to manage one's emotions on top of the capital risk they are taking. Hope this clarifies!

[@DarthTrader707]

@@ZietInvests I sure do hear what you're saying. I've DCA into TQQQ for almost 9 years. I've kept about 500K powder dry, and I'm thinking of putting it in, now. And, I'm feeling some of that stomach turning. I'm pretty sure we're not (and the street seems to be agreeing) that we're not in the middle of something serious that is going to lead to a lost decade like the 70's or 00's. If this follows what we saw in 2011, and 2018...and 2016 to a lesser degree...the returns of the next 3-5 years will be outsized, again. Still...I can't help but remember how the market rallied strongly at various times during its 2.5 year slide. It all hinges on inflation.

[@ZietInvests]

@@DarthTrader707 Ah...my stomach would definitely turn with leveraged ETFs haha! Props to you, but do watch out for the rising oil price in US and Europe, that could translate into impacting worldwide energy prices

[@DarthTrader707]

@@ZietInvests Yeah, it's been pretty gross and it's not for the faint of heart, that's for sure. After three great years in a row, where it went up 8 times (and that includes a seventy percent drop in one month, back in 2020), I came into this year thinking that if it went down 40% for the year, it would be an okay year. We'll see what happens, but I agree...oil is the key to this inflation craziness ending. The whole world runs on oil, and until oil prices come down, inflation isn't going away. I will say, though, this won't last forever. And, when the dark cloud finally is lifted, we're going to see something like we saw in March 2009...one of the best bull runs ever. The longer this lasts, the more certain that is. But, for now, I've decided to keep my powder dry. I'll see what happens after the summer, I think.

[@david_lifeandgames]

Bro do you do covered options? Covered puts or calls? Would like to watch a video on the steps to do so in IBKR. Prefer covered since it doesn't require margin and utilizes the 100 stocks that one has on hand.

[@ZietInvests]

Ah unfortunately i dont trade options :x

[@PengWinYoutube]

This is 9 months old now so not sure ill get a reply but I feel like the average person is doing a bit of both no? I mean the average person who invests since the average person doesn't really invest at all. Any example being myself I would say I do DCA most of the time since a set amount of my paycheck goes into my savings every paycheck but any bonuses I get or tax returns I put right into my savings which is a form of lump sum saving I would assume right? Unless I have the definition misunderstood I don't think its possible for me to do lump sum investing unless I do a save in cash then dump into the market later strategy which is maybe what lump sum investing is? but that would just seem weird to me since you mentioned cash is almost always outpaced by any investment strategy so saving cash to then do a later lump sum investment seems like a waste and its better to just DCA your Yearly wage, instead of saving in cash your yearly wage and lump sum investing a portion of your wage at the end of the year.

[@ZietInvests]

Hi Matt, you're absolutely right, and actually there is no right or wrong answer because one can be saving for a long time and now that they discovered investing, they could be asking: Should they DCA or Lump Sum? And then there's you and I, we were exposed to financial literacy earlier, so we would think investing our wage as early as possible is the most common thing to do - again, everyone's situation is different so there's no 1 best way to do it :P

[@PengWinYoutube]

@@ZietInvests alright! thanks for the reply on an older video 👍

[@eszaqsc]

Punten Kak, mohon ijin bertanya. DCA vs lumpsum kan mmg lbh ringkas DCA krn tidak perlu analasis spesifik dari pasar. tapi pergerakan harga pasar kan biasanya harian. jadi mending mana ya Kak, antara DCA harian vs mingguan vs bulanan (bila menggunakan modal yang sama tiap bulannya anggapannya 600k/bulan) mohon petunjuk.

[@ZietInvests]

Hi, takda banyak beza, lebih kurang sama aja mingguan vs bulanan. Aku prefer bulanan

[@dexterstm]

Does this mean example If i follow DCA approach and I have RM10K for my initial capital investment and 2K quarterly investment. Should i put in 10k as Lump Sum for initial investment and 2K for quarterly or should I spread maybe 4k quarterly till my initial capital finishes then resume to 2k?

[@ZietInvests]

No right or wrong way as in the end, its all about what makes you feel comfortable! If you're okay with taking some risk and you think the company is priced right, you might go for putting all your money in at once. If you're more cautious, spreading out your investment over time could be the way to go 😁 Make sure to always do your research!

[@convincedquaker]

Very informative. Thank you.

[@ZietInvests]

I'm so glad you liked it! Have a great week ahead!!

[@Cheechorito]

Great analysis and points. Have always had this question on mind

[@ZietInvests]

Hehe glad you enjoyed it!😄

[@eehuntan8947]

Thanks for sharing Ziet!

[@ZietInvests]

You’re most welcome Ee Hun! 😋😋

[@bomaster4665]

Hey Ziet! Thanks for the informative videos. I'm still a uni student who's quite lost on investing, and your videos help a lot! I'd like to invest in the Ireland based ETF like CSPX, but how would DCA work with CSPX since I'm not able to invest a set amount each month (due to lack of funds) since we're not able to do fractional shares like with US stocks?

[@ZietInvests]

Hi there, you can always start with VOO if fund is an issue, CSPX is good for tax savings n no estate tax implications but it will only benefit you when you have a larger amount invested, so meanwhile, just go forth with VOO 😄

[@bomaster4665]

@@ZietInvests hi Ziet! Thanks for the response. Do you know around how many USD does it start to make sense to go for CSPX rather than VOO? Also, as a student, I don't really have an income, so I'm thinking of putting a lump sum and not DCA-ing until I graduate and start earning an income. Would it be okay to use IBKR to just park the lump sum and forget about it for 3-4 years?

[@ProdMBS-bq5vf]

I have a question: How many diffirent coins should your portfolio contain when doing DCA. I am currently invested in around 8-9 coins but i was wondering if that is too much? Im very new to crypto so any help would be appreciated

[@ZietInvests]

I don’t invest in crypto to be honest 😅 but usually with stocks, i’d say 3-4 stocks is more than handful!

[@david_lifeandgames]

You should put no more than 10% of your money into crypto since they are very volatile and is all based on speculation. This is an advice from financial experts.. Still up to you to follow or not.

[@arunraja5949]

Hi Bro, Thank you for all your informative videos. After watching all your previous videos, I am planning start investing ETFs through IBKR. I want to buy CSPX, QQQ, VWRA. Can you able to purchase all those ETFS from India through IBKR global trader? Please check it let me know.

[@ZietInvests]

Hi Arun, yes you definitely can! As far as i know, there shouldn’t be any issue with you requesting for trading permission for US and UK market 😁 (however europeans wouldn’t be able to trade US ETFs due to PRIIP regulation)

[@arunraja5949]

@@ZietInvests Thank you so much 😊 I really appreciate your explanation.

[@danieltan3147]

Thanks bro

[@ZietInvests]

🥰

[@wongtmg]

Hi Ziet, Great work and always very informative content. May I ask do Malaysian need to file IRS tax form 1065 or schedule K1 for trading UVXY and SQQQ etf? I can't find any info online. Hope you can help. Many thanks 😊

[@DarthTrader707]

Those would be treated exactly the same as buying FB or MSFT as far as taxes in any country are concerned, if that helps. All they are, are ETF's.

[@wongtmg]

@@DarthTrader707 thanks for the reply. Capital gain in trading non-partnership company share would not attract taxes for non US resident. But for partnership co. Share that i bought i received form 1065 asking me to file return. My question is do I need to file return if i i made some profit or losses trading partnership share.

[@ZietInvests]

Hi, as Sebastian rightfully mentioned, I believe they will be treated as a fund domiciled in US, hence you will be taxed on your dividends based on your country of domicile, usually 30% WHT for non-US residents from a country with no tax treaty with the US. No need to file anything, the 30% WHT will be automatically withheld by the broker upon dividend disbursements :)

[@wongtmg]

Hi Ziet, thanks for taking time to reply. Sorry not clear on my question. This is not dividend. It is profit distributed by the partnership co. to share holders.

[@alvinchoong1188]

I bought the dip but the dip dipped. So i bought the dipped but the dipped dipppeeddd. 🤦‍♂🤦‍♂ DCA all the way. At least i dont need to worry and go to bed at peace.

[@ZietInvests]

Haha maybe you can try spacing out your dip buying intervals (it's easy to get emotional and keep buying every few other % drop, might need a little bit of patience here!)

[@SiriusTheKid]

Saw a twitter account BUY the dip on LUNA crash. Bought at 20, 4, 1, 0.10. Luna went to 0.00000120 His millions became few hundreds in ONE day.

[@ZietInvests]

Investing in a stock of a cash flow generating company is completely different than putting money into a ponzi scheme 😆

[@izzuddinmnasir4884]

when i see Terra Luna & Serba Dinamik, both are quite useless for me

[@ZietInvests]

😂🤣🤣🤣

[@shahzaibajmal1073]

what is your religion?

[@ZietInvests]

Buddhist ;)

[@vs5948]

This video on DCA is like another feather 🪶 on Cap addition to your Last DCA video which I treasure to watch so many times .. Buying daily in small amounts is also a good strategy.Share your valuable view .

[@ZietInvests]

What a nice way to put it 👒 keep calm and invest on!