Should I stick to my dollar-cost averaging plan or double up on red days?
#1
I’ve been trying to stick to a disciplined dollar-cost averaging plan into my core portfolio holdings, but every time I see a big red day in the market, I get this strong urge to double up my buy order for that week. I know it messes with the averaging part of the strategy, but it feels like I’m getting a better deal. Does anyone else struggle with this, or am I just overcomplicating a simple approach?
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#2
I used to do the same on red days. The thing is, doubling up just because it dropped makes the average creep higher later and it steals the discipline you’re trying to maintain. I set a fixed cadence and auto execute, and I log the days that tempted me so I can review later. Still not perfect, but it helps.
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#3
Tried it once. Big drop, bought more, then watched it bounce a week later. Felt dumb and sweaty for days. Since then I’ve kept it simple and resisted the urge to top up on fear days.
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#4
Feels like your brain treats a red day as a sale, but the market doesn’t care about your calendar. I’ve found that sticking to the plan when feelings spike is the hardest part, not the math.
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#5
Do you think the real problem is fear of missing out driving the urge?
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