Every person who invests, any type of investment, must expect to be profiting aka profit. If possible profit obtained is the greatest, of course.
However, investing is not so natural. Because there are times when an investment gives a great advantage at one time, but at other times the same investment is actually causing huge losses.
The causes are numerous, including the knowledge of investors about investment instruments that he chose, and an understanding of the macro and micro economics. Complicated? It is certain.
But it could be slightly modified with an investment method called Dollar Cost Averaging (DCA), which is known for easy and simple and can be done by anyone.
"The words" dollar "because this method originated from the United States that uses the dollar," said Edhi Widjojo, president director of AXA Asset Management Indonesia. "The dollar can easily be replaced with" dollars "to adjust the currency used in investing."
In essence DCA is a method of investing regularly in the same amount of money in a specific period, in the form of stock or mutual fund investments. By investing regularly, then the investor will still make the purchase when the stock price down or up. When dropped, the shares purchased would increase much, and vice versa. At the end of the period, the difference in the purchase of high and low purchase price, and the number of shares held, which determines the success of your investment.
In other words, according to Edhi, DCA is an investment strategy regularly every certain period regardless of market movements.
"The goal is to reduce the investment risk due to market fluctuations aka market volatility," said Edhi.
Edhi explains that DCA is suitable for novice investors who do not need to care pergrakan market or market timing. "Because the investment is made in" installments ", then no need to wait for a huge amount to get started."
