Thought of the day

I thank whatever gods may be / For my unconquerable soul. / I am the master of my fate / I am the captain of my soul. ~William Ernest Henley, Invictus

Government's promises are like the Ringgit, they depreciate with time.



Monday, May 25, 2009

Finally...I am in green zone


After months of dollar-cost averaging, finally today I am seeing some gain.
0.809% profit is better than nothing:)

1 comment:

Swing2Freedom said...

yo fren, long time no see
how you doing? :)

just a discussion, hope u dun mind.

I figured out this a few months back when i was seriously thinking about doing DCA in my account.

I really think that there's a flaw and misconception on this DCA thing.

Here's the spreadsheet:-
http://spreadsheets.google.com/ccc?key=rLqmXrnbs1QHfkchMlU-Cfg&hl=en

In the backtest, I did a $1000 dollar cost average every month, from year 1993 all the way to 2009.

You will notice that, the profit/loss fluctuates all the way, from negative, to +100%, and back to 16% in 2009.

I believe, if anyone were to keep they money in FD, the profit will be a lot more higher than the stated rate.

so, the conclussion would be, you've gotta know when to sell all? or when to get in?

Would like to hear from your point of view too :)