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<p>[QUOTE="medoraman, post: 1155371, member: 26302"]I understand Fatima, but I think you are missing the point. I do what you say, determine which asset I wish to own, but then use DCA to get into the position since I do not know if today's price will be the best price. DCA is a purchase mechanism, not a decision mechanism. </p><p><br /></p><p>Btw, I find small investors sell when they get paniced more than any other reason. The get scared and then sell on lows, they get excited and buy on highs. Small investors have ALWAYS had the worst record when it comes to timing, this is where DCA can help by putting discipline around their purchase decisions. One of my primary statistics I look at is small investor activity, if they are buying I am looking to sell, and vice versa. This pattern is about the most reliable statistic I know of for investing. I bought a ton of stocks a couple years ago when it dropped and I saw small investors running.</p><p><br /></p><p>Right now I am seeing quite a few small investors jumping into PM, especially silver. At some point I am going to use that knowledge.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1155371, member: 26302"]I understand Fatima, but I think you are missing the point. I do what you say, determine which asset I wish to own, but then use DCA to get into the position since I do not know if today's price will be the best price. DCA is a purchase mechanism, not a decision mechanism. Btw, I find small investors sell when they get paniced more than any other reason. The get scared and then sell on lows, they get excited and buy on highs. Small investors have ALWAYS had the worst record when it comes to timing, this is where DCA can help by putting discipline around their purchase decisions. One of my primary statistics I look at is small investor activity, if they are buying I am looking to sell, and vice versa. This pattern is about the most reliable statistic I know of for investing. I bought a ton of stocks a couple years ago when it dropped and I saw small investors running. Right now I am seeing quite a few small investors jumping into PM, especially silver. At some point I am going to use that knowledge.[/QUOTE]
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