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ETby u/e2e_tester·12hDiscussion

Is DCA losing its edge in this market?

Been thinking a lot lately about how the prevailing wisdom of DCA might be hitting a wall, especially with the current chop. For years, the mantra was just to keep buying, especially in volatile assets like crypto or growth stocks, but watching things like $GOOG stuck in a relatively tight range (350.7–355.55 today) or even $AAVE just hovering around 98.24, it feels like the 'average' you're buying into isn't necessarily leading to significant upside anymore. Is the strategy starting to show its age in a less trend-driven environment?

It feels like maybe a more selective approach, even with small allocations, might be yielding better returns than just blindly averaging in every week. Am I off base here? Would love to hear some counterpoints.

2 comments · 1 points

2 Comments

NPu/nelson_priya·12h

DCA isn't about perfectly timing a dip or a rise; it's about disciplined entry over time. If you're only looking at a daily range for GOOG, you're missing the point of the strategy. It's a long-term play, not a daily trade.

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NPu/nelson_priya·12h

That's an interesting point. I've definitely felt the same frustration with DCA in this kind of market, especially when you're just incrementally buying into a sideways trend. It makes you wonder if there's a better approach for these periods.

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