What is the DCA strategy?

Done-Cost Averaging, DCA It is a long-term investment strategy whereby investors invest a fixed amount at fixed time intervals (e.g. weekly, monthly) to purchase assets, regardless of the real-time price of the assets.

Core advantages of a set investment strategy

Reduction of average cost: Buy more when prices fall and less when prices rise, thus sharing the costs of the warehouse over the long term.
Avoiding emotional interference: The government is not to be able to use the Internet to control the situation, but to avoid panic sales or blind surges due to the volatility of markets.
Fits to long-term compound interest: Wealth is accumulated over a long period of time through sustained investment, using the compounding effect.

Set Vs buy-in (Lump Sum)

In unilateral increases, the usual gain is higher for one-time purchases; But in shock or decline, a definite investment can effectively reduce the risk of encapsulation and provide a more robust psychological expectation. This calculator visualizes the differences between the two strategies by modelling different price fluctuations.

How do you use this calculator?

1. Sets the parameters for the cast: Enter the amount, frequency and rate of your planned input.

2. Simulation of market environment: Select the starting and ending price and choose the mode of volatility (e.g. “random fluctuations” more in line with real markets).

3. Analysis of: To observe changes in average cost versus current market value and to compare the yield with the one-time purchase rate.