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

Hello fellow 🐯🐯🐯, this is part 3 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 Dollar-Cost-Averaging (DCA) where I debunked a common misconception that ❌DCA = Averaging Down❌ and compared the pros and cons of DCA 🆚 Averaging Down 🆚 1-Time Purchase.

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

🔎Background:

When I couldn’t decide what was the best auto-invest plan to be on, I discussed with 1 of my nice 🐯buddies and was laughed at🤭 when I said I was thinking of doing $1 daily for each stock. I know it’s duh…but to my creative brain🧠, it was like: 🤔💭 If I really believe that DCA works, then the best frequency should be daily as I would literally minimise all the day-to-day volatility and would only have to deal with intra-day volatility❓Thus, this research question was birthed: During a 🐻bear market, would there be a difference to my average cost price/share if I did DCA Daily 🆚 Weekly 🆚 Monthly❓

👩🏻‍🔬Method For Research Questions:

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

⭐️ I chose these stocks as I wanted a mix of index-based ETFs, Warren Buffett’s famous BRK-B, defensive stocks, popular tech stocks, and a controversial tech stock. I also added in other stocks that had the highest number of auto-invest plans in 🐯Brokers to test if Daily 🆚 Weekly 🆚 Monthly investments would make a difference to the average cost price.

(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 $1 Daily, $5 Weekly, and $20 monthly (20 sessions) to calculate the number of shares I would have gotten and the average cost per share.

⭐️ It was interesting to note that more 🐯🐯🐯 were on the Weekly and Monthly Auto-Invest Plans as compared to the Daily plans❣️A MILLI❤️N Thanks to @TigerTradingNotes for extracting theuseful data to help us invest better💕💕💕

*Disclaimer: The above stocks are not recommendations for DCA/🐯Auto-Invest. I chose these stocks for experimental and educational purposes only*

🕵🏻👩🏻‍💻Research Results:

I provided a $300 and $3000 investment table for your easy reference but the amount invested will not affect the research results. The average price/share would still be the same and we would just get proportionately more shares if we invested more.

🤔💭: During a 🐻bear market, would there be a difference to my average cost price/share if I did DCA Daily 🆚 Weekly 🆚 Monthly❓

(1) For the above chosen stocks, a Daily DCA plan obtained a lower average cost/share for 64.7% of the stocks (11/17)🥳🥳🥳

(2) Daily DCA was the best for all 3 index-based ETFs (SPY, QQQ, and VOO), for both defensive stocks (BAC and KO) and for some most tech stocks (GOOGL, AMZN, APPL, META, TSLA, and PLTR). Surprisingly, MSFT, TSLA, NVDA, BRK-B, and the 2 energy stocks were better off on weekly DCA plans.

(3) The average cost/share between Daily 🆚 Weekly DCA plan is not significantly different but it was a lot higher for Monthly DCA plans. By using a Daily as compared to a Monthly DCA plan, we could have gained 4.12% more😉

🥁🥁🥁Conclusion:❣️Monthly DCA plans are definitely the worst for the above listed stocks during the recent 🐻bear market. This is a totally unexpected positive finding and I’m elated to know that my reasoning of a daily DCA plan was the best at obtaining the lowest average cost/share most of the time was right😃 Please note that this finding may not be generalisable to other periods until I have done further testing👩🏻‍🔬

Keep a lookout for the rest of my Auto-Invest posts later today & tomorrow:

📌 DCA Profit-Loss Analysis During A Bear Market💵/💸🐻

📌 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❣️

As usual-🤔💭 Consider POV & Actions of Investors + 👩🏻‍💻👨🏻‍💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰

$Microsoft(MSFT)$ Bullish$Amazon.com(AMZN)$ Bullish$Netflix(NFLX)$ Bullish$Tesla Motors(TSLA)$ Bullish$Coca-Cola(KO)$ Bullish

@TigerStars @CaptainTiger @MillionaireTiger 

# Is auto-invest a viable strategy for investing 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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  • GoodLife99
    ·2023-03-31
    TOP
    [Like] very good sharing!
    congrats that you become Star Contributor! 实致名归!
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    • LMSunshineReplying toGoodLife99
      You need to wait for my next series of posts-havent done the analysis yet😅 but yes that’s my next plan.From my logical thinking should still be daily is better.Because stocks go up and down throughout the week. Say this week bull and you put friday buy but that’s the most expensive day of that week😅 If daily everything should even out better
      2023-04-02
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    • GoodLife99Replying toLMSunshine
      noted with thanks! just second thought, ADI during bear mkt for daily better then  monthly, however daily during bull mkt may be the other way?
      Sure will repost! forget this time! [smile]
      2023-04-01
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    • LMSunshine
      Thanks buddy❣️You bought your BAC yet? If you still want to buy, daily DCA will get 👍price😉
      Can help me repost my 4 auto-invest articles so that more 🐯🐯🐯 can access this info? It will count for the daily coin task of ”Share Trending Article”
      2023-04-01
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  • WernerBilly
    ·2023-03-31
    TOP
    Wow you are very diligent person. Really want to learn from you.
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    • LMSunshine
      Thanks for your kind words🥰
      2023-04-01
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  • A_Isopod
    ·2023-03-31
    TOP
    [可爱] [白眼] [龇牙] [流泪] [得意]
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  • BillyWilliams
    ·2023-03-31
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    Do you do spot trading or future trading?
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    • LMSunshine
      Sorry friend, I don’t do spoy or future trading.
      2023-03-31
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  • SR050321
    ·2023-03-30
    TOP
    Good job and very detail 👍
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    • LMSunshine
      Thanks buddy❣️Hope my 4 auto-invest posts help with your investing🥰
      2023-04-01
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  • LMSunshine
    ·2023-05-11
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    @Decromer Post 3, this is why I do daily $1 for several stocks, hope this helps🥰 please help to repost if yiu find it useful so more 🐯🐯🐯 can benefit❣️
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  • MojoStellar
    ·2023-04-02
    thanks for sharing
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    • LMSunshine
      Welcome, happy to share🥰
      2023-04-03
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  • LMSunshine
    ·2023-04-04
    @JohnL Thought you might be interested in this post that compares DCA daily vs weekly vs monthly, since you buy QQQ and VOO. If you find this post informative, you can click on the Snoopy icon to go to my homepage and find my 3 other posts on DCA🥰
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  • LMSunshine
    ·2023-04-02
    @hh488 Check out the tables in this post as I compared the daily,weekly,monthly DCA average cost per share for a list of stocks.
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  • GoodLife99
    ·2023-04-01

    Sharing is caring! & Good thing must share!

    Great weekn ahead! [Happy] 

    AUTO - INVEST

    Part 3

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    • icycrystal
      thanks for sharing
      2023-04-02
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  • jethro
    ·2023-04-01
    //@SR050321: Good job and very detail 👍 thanks for sharing 
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  • Popcorn28
    ·2023-03-31
    Great ariticle, would you like to share it?
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  • ed62
    ·2023-03-30
    Thanks for sharing this
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  • WonderElephant
    ·2023-04-02

    Good example! Thinking of DCA daily now

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  • icycrystal
    ·2023-03-31
    thanks for sharing
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  • 88wlam88
    ·2023-03-30
    Execellent, thanks
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  • angyenyen
    ·2023-04-11
    🌹
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  • Chooer
    ·2023-04-11
    👍
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  • Korer
    ·2023-04-11
    👍
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  • 🙏
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