To parrot others - buy when you can, there is no strategy.
The _reason_ being, if a low-high price trend existed, it would be exploited by active traders and essentially disappear.
A follow-up question to what OP is asking that I'd like to ask is whether you should aim for a certain number of VWCE stocks per month or get the closest equivalent to a money sum.
Meaning, should you aim to buy 10 every month or 1000 Euros worth?
The general consensus is to buy the same monetary amount each time, which is called Dollar Cost Averaging (DCA: https://en.m.wikipedia.org/wiki/Dollar_cost_averaging).
However, as another redditor replied, you should aim to invest whatever amount is safe for you to do so.
I am using this strategy for a couple of years now. I think it doesn’t really work at most, place a limit order at the bid price and wait a few days. You might end up saving 1-2 euros per transaction. If the price is climbing you need to go in daily and adjust your price, and then after some time finally give up and buy at ask.
Everything else is market timing, which might work at volatile times but usually it is just frustrating.
You might want to keep a chunk of cash around to do some extra investing if the market suddenly dips though, but probably not at the expense of regular investments.
You are just playing around and betting the market will go down which is exactly the opposite you want, at least in the long run. As the saying says, time in the market beats timing the market. The money you think that you are saving is ridiculously small when comparing to the money you will have in the long run.
It won't matter much, except that it may save you 2 or 3 euros a month, like you say.
The downside is that there is a chance that the limit order does not get filled at all for your original price, and you may end up having to pay more than the original market order price.
I still think you can on average get a bit of an edge placing limit orders somewhere between bid and mid, but it will be insignificant for long term buy and hold.
Buy when funds are available to you. Once a month is completely fine, you don’t need to time the market. It’s not rocket science. Buy as much as you’re able to afford each month. Or every two months, or every half year.
If your investment horizon is over 2 decades, it doesn’t matter. I wouldn’t bother to try to time the market
2 decades is a lot. Even for a 2 year horizon, it would not matter / alter much things.
To parrot others - buy when you can, there is no strategy. The _reason_ being, if a low-high price trend existed, it would be exploited by active traders and essentially disappear.
A follow-up question to what OP is asking that I'd like to ask is whether you should aim for a certain number of VWCE stocks per month or get the closest equivalent to a money sum. Meaning, should you aim to buy 10 every month or 1000 Euros worth?
The obvious answer is what you can afford to invest
Yeah, 100%. I guess I just wanted to know that I'm not fucking up by DCA'ing.
The general consensus is to buy the same monetary amount each time, which is called Dollar Cost Averaging (DCA: https://en.m.wikipedia.org/wiki/Dollar_cost_averaging). However, as another redditor replied, you should aim to invest whatever amount is safe for you to do so.
Ramit Sethi also suggests to increase that amount by, I think, 1% each year, which does make sense. Or, simply, 10% of your income.
It does not matter.
I am using this strategy for a couple of years now. I think it doesn’t really work at most, place a limit order at the bid price and wait a few days. You might end up saving 1-2 euros per transaction. If the price is climbing you need to go in daily and adjust your price, and then after some time finally give up and buy at ask. Everything else is market timing, which might work at volatile times but usually it is just frustrating. You might want to keep a chunk of cash around to do some extra investing if the market suddenly dips though, but probably not at the expense of regular investments.
You are just playing around and betting the market will go down which is exactly the opposite you want, at least in the long run. As the saying says, time in the market beats timing the market. The money you think that you are saving is ridiculously small when comparing to the money you will have in the long run.
To add on this, using Flatex is it better to do it monthly via fixed amount or accumulate and buy every 2-3 months to reduce the fees?
Buy a bit more when it's down if you can, but regarless few cents/euro difference in price doesn't really matter with a long time horizon.
It won't matter much, except that it may save you 2 or 3 euros a month, like you say. The downside is that there is a chance that the limit order does not get filled at all for your original price, and you may end up having to pay more than the original market order price. I still think you can on average get a bit of an edge placing limit orders somewhere between bid and mid, but it will be insignificant for long term buy and hold.
No.. just do it.. like Nike..
Buy when funds are available to you. Once a month is completely fine, you don’t need to time the market. It’s not rocket science. Buy as much as you’re able to afford each month. Or every two months, or every half year.