Which Auto-invest Strategy is Right for You?

TigerTradingNotes
2023-05-06
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According to Professor Siegel, author of "Stocks for the Long Run," who conducted a statistical analysis of the American financial market over more than 200 years, stocks are the highest yielding asset in long-term investments, followed by corporate bonds and short-term government bonds. However, no bond can outperform inflation in the long run, only stocks can.

Obviously, stock auto-invest has become a recognised long-term investment strategy. So, what kind of auto-invest strategy can achieve higher investment returns? And how to appropriately reduce the risk of stocks?

Common auto-invest strategies include regular fixed investment, regular variable investment, and value-based investment.

Regular fixed investment is one of the most widely used and simplest investment strategies, which involves purchasing a fixed amount of stocks on a regular basis to achieve stable long-term investment.

On the other hand, regular variable investment adjusts the amount of stock purchased based on market conditions, buying more in a downturn and less on an upturn, making it a good strategy for smoothing costs.

In addition, value-based investment can reduce average costs by judging the current stock valuation and buying more when undervalued and less when overvalued.

Do you know any other auto-invest strategies? If you were to invest, what strategy would you use? Whether you're a novice or an experienced investor, regardless of market fluctuations, different targets, and funding levels, feel free to leave your comments below to share your thoughts and experiences. Let's explore how to achieve wealth appreciation through stock investment together!

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[Lovely]Activity duration: 6th May-15th May

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Is auto-invest a viable strategy for investing in stocks?
While auto-invest is a well-respected long-term investment strategy among many mutual fund investors, is it suitable for investing in high-risk stocks like those in the US market? What are your thoughts on Tiger Trade’s auto-invest feature? How would you use it to invest in stocks?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Comments

  • Khikho
    2023-05-06
    Khikho
    Win 5 Tiger-coins
    定期可变投资根据市场状况调整股票购买量,在低迷时期多买,在上升时期少买,这是一种平滑成本的好策略。
  • icycrystal
    2023-05-07
    icycrystal
    Win 5 Tiger-coins
    auto-invest is a good tool as it allows you to invest consistently. moreover, it helps people who lead a busy life to invest without having to spend much time looking over stock. furthermore, with auto-invest you do not need to fork out one lump sum at one go but spread throughout over time @LMSunshine @Fenger1188 @HelenJanet @Success88 @GoodLife99 @SR050321 please share your thoughts [smile] [smile] [smile]
    • KryZ
      Yup. 💯
    • koolgal
      That's an excellent strategy that I certainly agree😍😍😍
    • Fenger1188
      谢谢分享
  • Success88
    2023-05-07
    Success88
    Win 5 Tiger-coins
    Auto invest in $Tiger Brokers(TIGR)$ is a good way to grow you wealth. As low as USD $1. Can stop anytime if you want.
    What good about Auto unvest is consistently invest and earn passion income in good company to collect dividends, Moreover auto invest make you feel worry free and consistent money auto invest in. If uou are a busy person just let Auto invest do the job @Daily_Discussion @SR050321 @MHh @LMSunshine @HelenJanet @Fenger1188 @koolgal @SPOT_ON @TigerEvents @Tiger_SG
  • LMSunshine
    2023-05-07
    LMSunshine
    Win 50 Tiger-coins

    Using a combination of Regular Fixed + Regular Variable investment is the most effective for me😉

    In a market downturn/stock declining period📉, I will do a daily 🐯auto-invest plan of $1 (Regular Fixed) for the stocks that I want to accumulate. $1 is affordable & helps me to build a daily saving habit while allowing me to invest in 5-10 different stocks. Total per month is just about USD100-200❣️Regular Fixed helps to prevent us from missing out on the bottom and allows us to keep buying as the stock declines.

    When a stock has gone down considerably, I would invest a lump sum (Regular Variable) as this would give us the highest return when the stock recovers📈. When a stock recovers, I would stop my 🐯auto-invest plan of $1 and look for another declining stock to start my plan😉 then I repeat this process for the all stocks that I’m interested in🤗🥳

    @TigerStars @CaptainTiger @MillionaireTiger @TigerTradingNotes 

    • LMSunshineReplyDecromer
      Oh btw DCA won’t work for risky stocks. For example, quite a number of Tigers got burned DCA-ing on $MANULIFE US REIT(BTOU.SI)$ $Novavax(NVAX)$ etc
    • LMSunshineReplyDecromer
      Welcome buddy❣️ I did a series of post on auto-invest, check it out to see if it helps😉
    • Decromer
      I never thought of doing daily $1 auto invest [Happy]I'm only doing monthly auto invest.

      Thanks for sharing this tip! yes, dollar cost averaging always works out in the end

    • LMSunshineReplySirBahamut
      Take care❣️
    • SirBahamutReplyLMSunshine
      Im busy too! sometimes i even forget to do DD. I chanced upon your article and thought of saying hi!
  • koolgal
    2023-05-07
    koolgal
    Win 50 Tiger-coins

    🌟🌟🌟Auto Invest with Tiger Brokers is a fantastic way to invest with minimal capital and maximum gain over a long term horizon. 

    I like the Regular Fixed Auto Invest Strategy best as it requires the least monitoring and saves me time too. 

    Every month I would put USD100 into $SPDR Portfolio S&P 500 ETF(SPLG)$  which represents 500 of the largest and strongest US companies in the US. This auto invest strategy also minimises my risks on buying individual stocks.  Over a long term horizon it allows the magic of compounding to happen. 

    That's what Warren Buffett recommends and that's how he became a billionaire too.  It is time in the market that counts, not timing the market. 

    @TigerTradingNotes  



    Every month I will put USD 100 

  • MilkTeaBro
    2023-05-07
    MilkTeaBro
    Win 5 Tiger-coins
    Regular fixed investment, buy $VOO(VOO)$ , plus conditional pause buying at bubble market
    • ALLinOne
      thank for your recommendation about VOO which i picked it last week, MAY GOD BLESS US
    • koolgal
      Thanks for sharing your insights 😍😍😍
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