Replacing Emotion With Discipline Using Dollar Cost Average (DCA)

Mike Tyson’s infamous quote that, “everyone has a plan until they get punched in the mouth” is often, and appropriately applied to stock market investors, who claim they’d love to see a market decline that would allow them to buy stocks on the dip.

But often times when that sell-off comes, it’s deeper and steeper than expected. In turn, planned purchases turn to paralysis, or worse, there’s a panic into selling existing holdings.

The dramatic decline during this past fall — which took the indices into a bear market and many individual stocks down by 30% or more — seemed to put an end to investors ‘buy the dip’ mentality.

Unfortunately, rather than taking advantage of…

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