You divide your capital into 5 parts (20% each), but do not buy periodically. Instead, you:
Keep 100% of capital outside the market.
Regularly monitor the market (can use price alerts, technical indicators).
Only start buying in parts when the market drops sharply or shows signs of panic.
🔐 Advantages:
Enter at the right moment when the market is on a 'sale off'.
Average purchase price is lower compared to periodic DCA.
Maintain a strong mindset because you have a clear strategy.
⚠️ Risks to note:
Need to be patient, do not FOMO when prices are rising.
May miss opportunities if the market does not correct deeply.
Need to monitor the market regularly or set alerts.
There are many types of investments, why not choose a safe investment type?
