It’s extremely difficult to predict the perfect moment to sell or buy a stock. Sometimes even the most experienced veteran brokers, traders, analysts and financial experts fail to get their timing right. However, when faced with a turbulent market, there is a long-term strategy that’s been proven effective.
“It’s referred to as “dollar cost averaging” and the ‘dollar in ‘dollar cost averaging can actually be any currency, not just the US dollar. The fundamentals remain the same,” says Richard Meyer Cayne of Meyer International Ltd in Bangkok, Thailand.
“It’s kind of like hitting cruise control on your investing. With dollar cost averaging, you don’t have to worry about your investments every time the market moves.”
With dollar cost averaging (commonly referred to as DCA) investors don’t have to focus so much on stock prices. Instead, investors devise a disciplined schedule for putting money into their portfolios. Dollar cost averaging involves investors building a plan that includes a set amount of securities (funds, stocks, bonds, etc.) over a set interval of time.
For example, you may devise a plan towards investing $9,000 in a Russell 2000 index fund by buying units worth $1,000 every month for nine months. Over the course of those months, the fund
may fluctuate in value. What this means is that you are spreading the risk of gaining or losing over a longer period of time ($1000 dollars per month, in this instance) instead of investing all of your money (in this scenario, $9000) at once. Sure, you could hit big on a larger investment if the stock hits a record low.
But, then again, consider the opposite scenario
DCA allows you to cover some of those concerns while still keeping your investments active in the market, long-term.
Regardless of the strategy, however, there are never any surefire guarantees that you will make money, but with dollar cost averaging, at least you can greatly reduce the amount you might lose (if you lose anything at all).
Take this particular scenario, for example. In this instance, you’d make money:
You’re essentially already investing by means of the DCA strategy if, say, for example, you are
contributing monthly income into a retirement plan. But as an independent investor, it may be prudent for you to put a little more time and research into exactly what you want to invest before kicking your personal DCA strategy into motion.
Keep in mind, this is just a strategy to help you stay afloat in the market so that you can maintain a time in market mentality, which of paramount importance during stormy times when the natural urge is to sell. So, with DCA, the longer you commit to your plan, the better the chances are that you will ultimately make money.
But how often should you buy over that timeframe? Every day? Every month? Every year? And what sort of fees come with dollar cost averaging plans? With questions like these, it might be an intelligent move to sit down and consult with a trusted financial expert like Richard Meyer Cayne of Meyer International Ltd in Bangkok, Thailand.
Talking to someone like Richard Cayne will not only help you get a better idea of exactly what’s best for you, but will also provide you with an opportunity to assess your risk appetite and evaluate your portfolio so you’re set with the best possible strategy to yield financial returns moving forward into the future.
Richard Meyer Cayne of Asia Wealth Group Holdings, the Meyer Group, Meyer Asset Management and Meyer International Ltd has been involved in wealth management planning for decades. Originally born in Montreal Quebec, Canada, he later relocated to Tokyo, Japan for over 15 years and now resides in Bangkok, Thailand. While he runs the Meyer Group and serves as the high credibility CEO of Asia Wealth Group Holdings Ltd, a London, UK Stock Exchange-listed Financial Holdings Company, as well as the Managing Director of the Meyer Group of Companies www.meyerjapan.com. and has additionally been the managing director of multiple organizations that specialize in helping high net worth individuals with succession planning .
Having worked with clients all over the globe with everything from portfolios to bonds to mutual funds to offshore investing to investing in retirement for your golden years, Richard Cayne of Meyer International can help you invest the right way and protect your cash. Richard has been a financial advisor involved in wealth management planning solutions and asset management in Asia for over 25 years and while living in Tokyo, Japan, he assisted many high net-worth Japanese families create innovative international tax and wealth management planning solutions. The financial holding public company of which he is CEO can be seen at Asia Wealth Group Holdings Ltd or the stock exchange link:
https://www.aquis.eu/aquis- stock exchange/member?securityidaqse=AWLP Asia Wealth Group Holdings Ltd – Richard Cayne Thailand. Meyer Asset Management Ltd has been in the wealth management space since March 2000 and uses fundamental analysis along with modern portfolio theory.
His image worldwide as a professional advisor has been sterling and he maintains a firm command and understanding of all things finance-related.