I have about $2000 in an investment account that I would like to throw into an index fund (VOO). As I am very new to this, could someone explain pros/cons of throwing it in lump sum vs DCA? Thanks

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If you have no transaction fees with your broker, i would maybe layer it in chunks of 500 a week apart

likehelpful

Essentially helps you avoid big weekly drops in uncertain times like these. Lets say market gets hit hard on friday then wow, week 2 becomes a tremendous buy opportunity. People may expect a rebound and then week 3 it keeps going down and you can further lower your average and so on

likehelpful

Just throw it all in. Your principal isn’t big enough to where it makes sense to DCA.

Want to DCA? Put all $2k in and then buy 2 shares each paycheck moving forward. And you’ll DCA.

likehelpful

True. Wasn’t trying to disparage OP and understand it’s all relative. More so encouraging them not to overthink it as if it was $200,000 or something.

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Robinhood is going to be the patsy in this one. The funds will continue to be fine.

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Additional Posts in Option Traders & Investing

Who’s buying Dave Portnoy’s BUZZ ETF this Thursday?

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Are we still feeling HD Nov 15th or so puts?
I’m also watching X and Real quite closely for an opportunity for puts as well.
Also UVXY or possibly just VIX calls with a few months to expiry

Been selling covered calls or puts on F. Seems almost too easy. What can go wrong, outside of it actually hitting ITM?

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Question on option price in relation to theta, does the theta component recalculate each day, or it changes even every minute? Say if u buy and sell within a day, expect to lose some theta value?

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Robinhood is going to be the patsy in this one. The funds will continue to be fine.

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UBER & LYFT puts tomorrow?

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Adverse selection is a huge issue in trading. You never have perfect information and your decision won’t be perfect for the outcome. This usually means you’re too small in winners and too large in losers.

As markets crash we’re seeing something similar. People are ignoring bad outcomes when they should be working that much harder to protect previous gains and find new ideas. Lower traffic in this thread is a symptom of this phenomenon. Don’t quit just as the value of incremental effort ramps.

likeuplifting

I’m seeing lots of posts about really bad losses. If you trade you’re going to lose money - hopefully not all the time, but many positions will be mistakes. But you need a process to find ideas and manage positions. Two books you should read are “The New Trading for a Livinng” and “The Laws of Trading.” Both look at psychology, process, and risk in different ways that can help you work out your own process. The next 18 months will be much harder than the last 18 - time to start learning.

likehelpful

Anyone bought some MAC? What is your reasoning and potential fair value?

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When would trump announce more stimulus package? Monday morning before open?

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I am thinking Puts for Disney, Airlines and Casinos....but they are already down 20%

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Weekend thought as many of us watch our portfolios bleed away value as the market hit all time highs: stick with it. This is a very difficult time in the market so try to figure out what’s not working and fix it. Stick with your process while trying to improve it. That should you you in the best place to manage risk now and be positioned to capture new opportunities in the coming weeks and months. Discipline, execution, and patience are key sources of alpha. Best of luck.

likeuplifting

DOGECOIN to the 🚀🚀🚀🚀

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HD is an excellent short candidate right now. March 29 $187.5Ps or $185Ps

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Do I let the JWN $14.5 puts I sold get assigned to me today or buy back and sell puts again for next week?🤔🤔🤔

Guess it's a trade off between capping gains for less risk...

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Are USO puts a good idea rn?

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$MGNI resisting against the 20 day sma. Next stop at the 100 day sma support around 36.50. Anyone going short out for the ST?

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I have just got an options trader job at a prop trading firm. But I knew nothing about options/trading/finance. The firms said they’ll be officially training us once we start. But in the meantime, what are some books/resources that you would recommend to start learning first?

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Oh Elon.... 500x returns for some put holders who bought OTM today...

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