What you're describing is better analyzed as a continuing series of lump sum investments. You're investing as soon as you have cash available, not unnecessarily holding onto cash.
What you're describing is better analyzed as a continuing series of lump sum investments. You're investing as soon as you have cash available, not unnecessarily holding onto cash.
If you put all in at a certain price, and later the market moves down, you'll regret that you didn't buy cheaper, and think you timed it badly.
If, however, you commit to a strategy of putting in say 5% per month over the next months, then a) you just automate it, and don't think about it anymore, and b) you don't really have a reference price at which you bought (sure, you can determine your actual cost basis, but who does that...) and thus avoid regret when the market tanks. Plus you reduce variance (by reducing the variance of your cost basis).
Yeah for a start if you're really planning to buy $10 K of a world fund pick one with stock options. Sell a PUT secured by the $10 K with a 7 DTE. This is already guaranteed better returns (but still a bad strategy) than this dumb way of DCAing.
But when people say they DCA what they mean is basically: "I make $10 K net per month, I spent $6 K, I keep $1 K in cash and I invest the $3 K that are left". Which is actually not a bad strategy at all.
Not a hill worth dying on.