Risk Reduction with 123DCA

Both times I got in too rushed and all in one place – which ended up me getting caught on the wrong side.

So now I’ve learned a better way to enter positions – 123DCA.

1/6 go in first

1/3 go in after +/-X% (depend on volatility)

1/2 go in after further +/-X%

Doing so I might miss out on “good” price, but can see the trend first

make less profit but mitigate loss, less regret either way

Don’t be afraid to hold onto the cash for the moment

An update from September – I made the same mistaking again with buying BRK.B.

Already made a post there.

Reflecting why I was in a hurry, I didn’t want my US stock positions to drop too much.

But the thing is, if I’m 123DCA-ing, I will eventually get into the position, maybe just a bit more expensive, but not missing the train.

Instead now I have to regret going all-in at the wrong time and incurring losses.

So I’m going to make sure from now on, I am ALWAYS 123DCA-ing into anything I want to get into. period.