Is it Better to DCA or Invest Heavily During the Drop?

Nasdaq and S&P 500 log worst day since 2022 after Alphabet and Tesla fail to impress Wall Street. ------------ Which is better: DCA through auto invest fuction or invest actively during the drop?

【Voting Post】A pullback is coming. So what? Does this mean people should sell their holdings or to continue holding? Ultimately depends on your time horizon. If your time horizon is 30-40 years, will a 20% drawdown from a potential recession affect your investment decision? How about a time horizon of < 10 years. Introducing "Tactical DCA".  That would be the idea of automating your monthly investments into a broad-based index such as the $Vanguard S&P 500 ETF(VOO)$ . A more concentrated index such as $Invesco QQQ Trust-ETF(QQQ)$  is good in a bull market as gains are amplified and investors chase growth or potential future heavyweights, but picking something more diversified is better in the
$Taiwan Semiconductor Manufacturing(TSM)$  TSMC, the world's largest contract chipmaker, is facing a mixed bag of fortunes when it comes to its WIP status. On the one hand, the company's most advanced 3nm node is running at full capacity, thanks to strong demand from AI chipmakers. However, its other nodes are seeing a almost full in capacity utilization. Key takeaways from TSMC's WIP status: 3nm: The most advanced node, is currently at full capacity (over 100%). 5/4nm: Capacity has decreased from 92% in 2022 to 80% in 2023, but is expected to rebound to 94% in 2025. 7/6nm: Capacity has decreased from 85% in 2022 to 61% in 2023, but is expected to rebound to 75% in 2025. 16/12nm: Capacity has decreased from 86% in 202

US Black Monday: What’s Next?

Both the S&P 500 and Nasdaq 100 crashed by 3% on Monday. The fear index, VIX $Cboe Volatility Index(VIX)$ , surged 65% to 38.45 from 23.39. This current VIX level of 38.45 is the highest since 2020.   Reasons for the Equity Market Rout Unwinding of yen carry trade due to yen appreciation and interest rate hikes Rising Middle East tensions Recession indicator - Sahm Rule triggered Weakening US labor market Potential US-China tech war Sector rotation triggered by impending rate cuts and Trump’s re-election odds Growth scare due to lower earnings guidance   How Low Could the S&P 500 Go? 1) Based on 2022 Correction: The S&P 500 experienced a maximum drawdown of 25.43% in 2022 due to recession fears, geopolitical tensions, and risi
US Black Monday: What’s Next?

How is Hasbro revised?

$Hasbro(HAS)$ has seen an upturn after several quarters of low stock prices, reporting 2024Q2 results on July 25th that beat market expectations and lifted guidance.The company turned around despite a year-over-year decline in revenue, but significantly improved profitability by divesting its entertainment business and reducing the burden of high-cost operations.The highlights on the revenue front are still currently focused on a few key titles such as Baldur's Gate 3 in the digital gaming business, and the company still needs to strengthen its new game capabilities in this segment.Investment highlightsRevenue down but better than expected, with improved performance in the consumer products segmentQ2 total revenue was $995 million, down 17.1% year-
How is Hasbro revised?
Is It Better to Dollar-Cost Average or Invest Heavily During a Sell-Off? When it comes to investing, one of the most debated strategies is whether to dollar-cost average (DCA) or to invest heavily during market sell-offs. Each method has its proponents and critics, and understanding the nuances of both can help investors make more informed decisions tailored to their risk tolerance and financial goals. Dollar-Cost Averaging (DCA) **What is DCA?** Dollar-cost averaging involves investing a fixed amount of money at regular intervals, regardless of the asset's price. This strategy aims to reduce the impact of volatility by spreading out investments over time. **Advantages of DCA:** 1. **Mitigates Market Timing Risk:** - DCA reduces the risk of investing a large sum at an inopportune time, su
avatarBarcode
07-26
Kia ora Tiger traders, Is It Better to Dollar-Cost Average (DCA) or Invest Heavily During a Drop? This is a common debate among investors, and the answer isn’t always clear-cut. Let’s dive into the pros and cons of each strategy and explore which might be more effective depending on the market conditions and individual circumstances. Dollar-Cost Averaging (DCA) What is DCA? Dollar-cost averaging involves investing a fixed amount of money at regular intervals, regardless of the asset’s price. This strategy aims to reduce the impact of volatility on the overall purchase. Advantages: Reduces Risk: By spreading out investments over time, DCA reduces the risk of making a large investment at an inopportune time. Disciplined Approach: It promotes regular investing habits and can help avoid emotio
avatarkoolgal
08-18
🌟🌟🌟Many Thanks Tiger Brokers for my latest badge showing my Annualised returns of 50%.  I simply buy and hold and this is how I achieve this result. 

Important Level for $SPX & $VIX, Not that Pessimistic?!

$S&P 500(.SPX)$ Heisenberg's Chart Update: What a day today huh?! First 2% drop close in god knows how long. Anyhow, we look forward bretherns! I can see a small mini reprieve bounce near term here. And then we trek further lower to fill that 5,375 gap fill, causing the Daily RSI to hit oversold conditions similarly to April's 5% correction. Heisenberg on XSeth Golden: VIX has signaled a RISK-OFF event when 10-Day ROC crosses 40. Historically, this has proven a $S&P 500(.SPX)$ BUY signal with forward 3 and 6-month positivity rates 84% and 91% respectively. If you have 3-6 months and cash...Seth Golden on X @TRIGGER TRADES : Watch for the 5467-
Important Level for $SPX & $VIX, Not that Pessimistic?!

Nasdaq -3.64%: DCA or Invest Heavily During the Drop?

$NASDAQ(.IXIC)$ plunged 3.64% yesterday and continued to decline after today's opening. Do you think dollar-cost averaging into index ETFs $Invesco QQQ(QQQ)$ or buying during the dip is better? As earnings reports are released, investors are beginning to question whether the high valuations for star companies are justified, sparking concerns about the health of global tech companies. Current data shows that the P/E ratio of $S&P 500(.SPX)$ constituents is 21.4 times, compared to the historical average of 15.9 times.DCA or invest heavily during the pullback?How do you view?Leave your comments and also post to win tiger coins~
Nasdaq -3.64%: DCA or Invest Heavily During the Drop?

Why are Semiconductor Stocks Under Fire

The semiconductor industry is facing a significant headwind today, with major players like $STMicroelectronics NV(STM)$ tumbling over 10%. This sharp decline is a direct result of growing geopolitical tensions and the potential for stricter trade rules limiting China's access to advanced chip technology. China is a behemoth in the semiconductor market, accounting for a staggering 49% of $ASML Holding NV(ASML)$'s revenue. ASML, a crucial player in chip manufacturing equipment, is caught in the crossfire of this geopolitical standoff. The potential restrictions on chip exports to China could have far-reaching consequences for the entire semiconductor industry. This news comes at a particularly challenging t
Why are Semiconductor Stocks Under Fire
DCA or invest Heavily? This is the moment, once in a few times of your life that many is waiting for? DCA or Dollar Cost Averaging is usually use for ETF or Funds. This technique is good for average and most people. This technique is also used by funds house as they cannot buy too much or see too much.  I had taught a friend this technique after 2008 Lehman Brothers and many of my clients had benefit from DCA.  However I also taught my friend an advantage technique which she details in this blog https://rainbowwealth.blogspot.com/2021/12/rainbowwealth.html . I will share the essential here. Most people do not have time or do not know how to read the technical charts. Thus is unable to read when is the best time to buy the stocks near bottom.  I taught my friend this eas

Chart of the Week - Corporate Tax Rates

The USA is leading the way in the Global race to the bottom (15%) -- here's why that matters...While anything can happen (and probably will) heading into November, the consensus at least for now is that Trump will win the Presidential election — and one of his remarks last week prompted me to refresh my work on Corporate Tax Rates.The plan or proposal (and of course it is one thing to make a promise on the campaign trail vs what you can actually get legislated) is to take the US corporate tax further lower from 21% down to 15%.The interesting thing is this would take it in line with the 2021 OECD agreement on a global minimum corporate tax rate of 15% (ironically implemented as part of an effort to discourage a race to the bottom on competitive reductions to corporate tax rates).It would a
Chart of the Week - Corporate Tax Rates

No Pressure, Bulls.

No Pressure, Bulls.
avatarShyon
08-01

DCA or Investing Heavily during Pullback?

Interesting hit topic. For me, I think the decision between Dollar-Cost Averaging and investing heavily during a pullback depends on your investment goals, risk tolerance, and market outlook. 1. Dollar-Cost Averaging (DCA):  This strategy involves investing a fixed amount of money at regular intervals, regardless of market conditions. It helps reduce the impact of volatility and lowers the average cost per share over time. It's a good approach if you prefer a more disciplined and less risky investment strategy. DCA 2. Investing Heavily During a Pullback:  This approach involves making larger investments when prices have dropped, with the hope that the market will recover and the investment will yield higher returns. It can be riskier as it requires market timing and assumes you c
DCA or Investing Heavily during Pullback?
My Choice: A Balanced Approach While the allure of high returns from a well-timed lump sum investment is tempting, the reality is that consistently predicting market bottoms is nearly impossible. The emotional toll and risk involved make it a strategy suitable for only the most experienced and risk-tolerant investors. For the majority of investors, DCA offers a more prudent and sustainable path to wealth building. By eliminating the need for market timing and reducing the impact of volatility, DCA aligns with the principles of long-term investing. However, I believe a balanced approach can be beneficial. For instance, one could allocate a portion of their investment funds to DCA while maintaining a smaller allocation for opportunistic lump sum investments. This hybrid strategy allows inves
Whether to use dollar-cost averaging (DCA) or invest heavily during a market drop depends on your risk tolerance, investment strategy, and market conditions. Here are my three key takeaways: 1. Risk Management: DCA spreads out your investment over time, reducing the impact of market volatility and lowering the risk of investing a large amount just before a significant drop. This strategy can be beneficial if you are risk-averse and want to avoid making large investments during uncertain times. 2. Potential Returns: Investing heavily during a market drop can result in higher returns if the market rebounds strongly. This approach requires confidence in your market timing and the ability to handle short-term losses. It's often favored by those who believe in the long-term potential of their i

Market Thoughts: What's Going on Next?

Market thoughts:- Today was a material single day decline. The $S&P 500(.SPX)$ is below its short term trend. A checkmark on the risk-off criteria. - Despite the daily decline, breadth remained positive with more stocks making new highs than lows. - Overall 2/3 risk-off criteria are active. I will refrain from bearish thoughts until 3/3- The melt-up scenario is on pause with $ARK Innovation ETF(ARKK)$ < 45, my trade there has ended with a paper cut. Will reattempt on next close above 45. Will repeat until melt-up transpires or a bear market never enables price to trade above 45- $iShares Russell 2000 ETF(IWM)$ is still above 212, this is a bright spotFollow
Market Thoughts: What's Going on Next?

NDX Bearish Momentum Builds; Eyes on 50 DMA

$NASDAQ 100(NDX)$ - Daily Chart:There is a bullish crossover in the Stochastic oscillator, but a green day tomorrow seems unlikely considering the $Tesla Motors(TSLA)$ and $Alphabet(GOOG)$ $Alphabet(GOOGL)$ earnings reports.Today's candle foreshadowed a bearish move, and the key level mentioned this morning was not surpassed.The red arrow points not only to the bearish candle but also to the imminent bearish crossover between the 10 and 20 DMA.Price action is targeting the 50 DMA, currently at $19,389....I liked more a red Monday... $Invesco QQQ(QQQ)$ Imagehttps://x.com/SmartReve
NDX Bearish Momentum Builds; Eyes on 50 DMA
I think better to have both - DCA and during the big drop buy more. DCA to keep constant investing and big drop is a bonus to buy good companies at a good price. @koolgal @Shyon @HelenJanet @SPACE ROCKET @TigerGPT @LMSunshine @rL @GoodLife99 @Universe宇宙