To The Moon

Hello fellow 🐯🐯🐯 @TigerEvents asked us to share what we’ve learnt in Q1 2023 & the best lesson I’ve learnt in this quarter is about the effectiveness of Dollar-Cost-Averaging (DCA), how to best harness the power of DCA through the 🐯Auto-Invest feature, & knowledge of how I should Auto-Invest in a 🐻 market. Hope this sharing will benefit you in your investing journey🥰

This is part 4 of my 🐯Auto-Invest series, so if you haven’t read my earlier posts, do click on the Snoopy Icon to reach my homepage to read:

(1) My introduction on DCA where I debunked a common misconception that ❌DCA = Averaging Down❌ & compared the pros & cons of DCA 🆚 Averaging Down 🆚 1-Time Purchase.

(2) Real Life Example In Action🎬: My purchase price 🆚 🐯Auto-Invest price

(3) Does DCA-ing Daily/Weekly/Monthly Matter🕵🏻‍♀️🕵🏻‍♂️❓

🔎Background:

Despite fully understanding what DCA is & how effective it can be, my creative🧠 didn’t fully agree with what I’ve read on the internet😬 For me to believe in DCA, I would need to test it for myself & this whole series on 🐯Auto-Invest posts are the results of the tests I’ve done so far.

We’ve all read numerous articles like the above about the:

(1) ⭐️ AMAZING benefits of DCA-ing ⭐️

(2) ⭐️ S&P 500 index funds⭐️ being the best choice for DCA & that stocks are less suitable. Seeing enticing articles like this make us want to follow blindly🙈🐒🐒 However, do these claims hold true in the current 🐻market❓

🔎 My research questions are:

(1) Is DCA-ing into the S&P 500 index funds the most effective strategy in a 🐻 market ❓

(2) Which type of investments give the greatest profits💵💵💵 or create the most losses💸💸💸 using the DCA strategy during a 🐻 market❓

👩🏻‍🔬Method For Research Questions: Refer to bottom of post if you’re interested to find out.

*Disclaimer: The stocks in this post are not recommendations for DCA/🐯Auto-Invest. I chose these stocks for experimental & educational purposes only*

🕵🏻👩🏻‍💻What Have I Learnt In Q1 2023 From My Research Results:

⭐️ Among the chosen stocks for research, daily DCA-ing into NVDA, META, NFLX, QQQ, MSFT, & AAPL from 3/1/22-13/4/22 would have given us profits about 5%-33%💵💵💵

⭐️ Among the chosen stocks for research, daily DCA-ing into BAC would have created the most loss at about 33%, followed by DVN (24%), TSLA (20%), AMZN (16%), BRK-B/PLTR (10%)💸💸💸

⭐️ Our famous Buffett’s ETF BRK-B didn’t give better DCA results than the controversial tech stock PLTR😅

⭐️ Contrary to popular articles & advice online, Index-based ETFs (QQQ, SPY, VOO) didn’t give better DCA results than single stocks like NVDA, META, or NFLX😱

⭐️ Contrary to popular articles & advice online, defensive stocks like BAC & KO are not that defensive after all. Even if we exclude the 🏦 crisis, KO would have at best just broken even😨

⭐️ Not all investors’ favourite MAANG stocks performed equally well via daily DCA in a 🐻 market so our stock pick matters, & not just the sector.

🤔💭: Is DCA-ing into the S&P 500 index funds the most effective strategy in a 🐻market❓

🥁🥁🥁Conclusion: Surprisingly, DCA-ing into the S&P 500 index funds isn’t the most effective strategy in a 🐻 market. In fact, a $3000 investment into the SPY & VOO would have yielded a 2.94% loss & 2.49% loss⁉️ Are you shocked😱 to know that whatever the internet said is wrong❓

🤔💭: Which type of investments give the greatest profits💵💵💵 or create the most losses💸💸💸 using the DCA strategy during a 🐻 market❓

🥁🥁🥁Conclusion: There’s NO specific type of investment (ETFs 🆚 Stocks or Growth 🆚 Defensive or FAANG🆚 Oil) that will benefit in 🐻 market. We’ll have to assess the existing investing climate & market conditions to see which sectors/stocks/ETFs will benefit the most to give us the greatest profits💵💵💵 & avoid sectors/stocks/ETFs that’ll create the most losses💸💸💸 Within A Given ⏰ Period. For example, due to the AI🤖 hype in Nov 2022, DCA-ing into QQQ, NVDA, MSFT, & META in Dec 2022 would have been a profitable decision😉 whereas DCA-ing into SPY/VOO/Oil stocks at another period would have been profitable.

🤔💭: What Is My DCA Profit-Loss Analysis During A 🐻 Market💵/💸❓

🌟 DCA is an effective & ⏰-saving strategy in making profits in a 🐻 market❣️

🌟 Both Index-based ETFs & stocks can give the great profits💵💵💵 using the DCA strategy during a 🐻 markets.

🌟 If tech stocks are oversold during a 🐻 market & a rebound is expected, investing in QQQ would give us more profits💵💵💵 than SPY/VOO❣️

🌟 Defensive stocks are not always the best DCA investments in a 🐻 market. See losses for BAC💸💸💸 & KO as example😅

🌟🌟🌟 To maximise our profits💵💵💵, we can utilise the DCA strategy but we’ll need to assess the existing market conditions & investing climate to choose the correct ETFs/stocks to invest in🕵🏻‍♀️🕵🏻‍♂️

(1) Instead of DCA-ing into the same stock over a long period of time, we can have a list of stocks where we DCA into at different periods of ⏰

(2) We might have better outcomes if we split our regular investing capital to DCA daily into several ETFs & stocks, than to DCA into only 1 S&P 500 index fund e.g. $10 into 5 different stocks/ETFs daily rather than $10 daily into 1 ETF.

(3) A $10 daily DCA plan (just $220 a month) is an affordable investing plan which could give us fairly decent profits when I choose the correct stocks/ETFs even in a 🐻 market🥳🥳🥳

🚨 Contrary to the popular belief, DCA-ing into the S&P 500 index funds isn’t the most effective strategy in a 🐻 market‼️ However, if you’re not concerned about maximising profits & intend to invest over long periods of multiple 🐂 & 🐻 markets, they might still give you profits in the future, provided that they continually grow upwards & not hit a peak like SPDR Straits Times Index ETF did, moving up & down within its range.

❣️Being successful in investing isn’t as simple as what the media portrays it to be-winning some & losing some might not give us the retirement sum we need. Therefore, I would like to encourage fellow 🐯🐯🐯 to:

(1) Question & test what we read instead of following blindly🕵🏻‍♀️🕵🏻‍♂️

(2) Keep track of our capital sum & our total gains & losses till date📊 so that we can be sure that our wins are more than our losses & that our investing strategies are indeed profit-making😉

Keep a lookout for my next post on: Auto-Invest Toolkit🛠-Everything You Need To Know To Start Auto-Investing Today😉

Do follow me if you enjoy reading analytical stock research🔍 presented in a fun & easily understandable way😉 & for the Latest Stock & 🗞🗞🗞 Updates🕵🏻‍♀️❣️

Please help to click on the “Like” & “Share/Repost” buttons at the Bottom Right corner so that more 🐯🐯🐯 can access this information, many thanks🤗🥰 You will Greatly Encourage Me❣️

$Amazon.com(AMZN)$ Bullish$Bank of America(BAC)$ Bullish$Netflix(NFLX)$ Bullish$Coca-Cola(KO)$ Bullish$Alphabet(GOOGL)$ Bearish

👩🏻‍🔬Method For Research Questions:

(1) I extracted the daily high, low, & average trading prices for the current 🐻bear market (3/1/22-14/3/23) for the list onto an excel sheet.

⭐️ The list is a mix of index-based ETFs, Warren Buffett’s famous BRK-B, defensive stocks, popular tech stocks, & a controversial tech stock. I also added in other stocks that had the highest number of auto-invest plans in 🐯Brokers to assess the profit💵 or loss💸 of these different stocks & ETFs.

(2) As my 2nd post showed that 🐯Auto-Invest captured a price similar to the average price of the day, I used the daily average price as a guide to calculate an estimated DCA price.

(3) I used a daily DCA strategy as my 3rd post showed that daily DCA generally yielded better results. I used a $10 daily over 300 days plan (A Total of $3000 over 300 days for each stock) to calculate the number of shares we would have gotten, the average cost/share, & the profit & loss for each stock.

@TigerStars @TigerEvents @TigerTradingNotes