Great read! I totally get the DCA approach when it comes to index funds investing. However, I am wondering how do you approach this when investing in individual stocks? Are you buying fractional shares, meaning you invest the same amount into all your holdings every 2 weeks?
As for your question, no, I only do that for the big dollar amounts, MELI, for example. I add money every two weeks. That means I buy stocks dozens of times. Sometimes, there will be a period when I think one stock is more attractive than another and I will buy more of that stock. I might not buy a stock for several months or even stop buying. That may be because of the company's performance (not the stock, but the company, mind you), because of the valuation or because I feel as if the position in my portfolio is big enough for now.
Great read! I totally get the DCA approach when it comes to index funds investing. However, I am wondering how do you approach this when investing in individual stocks? Are you buying fractional shares, meaning you invest the same amount into all your holdings every 2 weeks?
Thanks.
As for your question, no, I only do that for the big dollar amounts, MELI, for example. I add money every two weeks. That means I buy stocks dozens of times. Sometimes, there will be a period when I think one stock is more attractive than another and I will buy more of that stock. I might not buy a stock for several months or even stop buying. That may be because of the company's performance (not the stock, but the company, mind you), because of the valuation or because I feel as if the position in my portfolio is big enough for now.