Make Extra 2-3% Every Year With This 1 Change

Let's talk about an advanced way to dollar cost average (DCA). If you're not familiar with DCA, it's a strategy where you invest a fixed amount in a particular investment at regular intervals, regardless of the price. For example, buying $100 worth of a stock every first of the month.

Now, here's my secret sauce to DCA that could potentially give you an extra 2-3% per annum. But first, let's understand what a Simple Moving Average (SMA) is. It's an arithmetic moving average calculated by adding recent prices and then dividing that by the number of time periods in the calculation average.

The strategy works best in an uptrending market, where the price is above the 200-day SMA. The trick is to DCA when the price touches the 50-day SMA. This approach can help you buy more shares when prices are low and fewer when prices are high, potentially boosting your returns.

My secret tip? Set an alert. I use TradingView for this, and I've shared my settings here. This way, you'll know exactly when to make your move. Remember, investing is not just about making money, it's about making smart decisions. Happy investing!

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