Author Topic: How does cost averaging work? (Read 5996 times)

joconcepcion · « **Reply #75 on:** Dec 16, 2011, 12:03 PM »

maraming salamat sir FE!

ferrariEverest · « **Reply #76 on:** Dec 16, 2011, 12:08 PM »

^ Sir joconcepcion,
nagdouble check pa ako kung ikaw yung nireplyan ko. heheh
you're welcome!

research_solutions · « **Reply #77 on:** Dec 17, 2011, 12:47 PM »

Thank you FE and Mam Win

You mentioned po na about 10% drop in NAV may be a possible indicator. do you mean po na 10% drop from its last crest po? kasi over the long run paakyat naman ang trend ng Odyssey po eh. so 10% ng last peak nya po ang ginagawa nyo? or 10% of the average? kindly help me out.

wintan2006 · « **Reply #78 on:** Dec 17, 2011, 02:11 PM »

10% down from the last NAVPS.

luranski · « **Reply #79 on:** Dec 17, 2011, 04:24 PM »

has anyone tried value averaging?

wintan2006 · « **Reply #80 on:** Dec 17, 2011, 05:13 PM »

@luranski,yes,i am practicing it for 3 yrs.What we were discussing in this thread above is called value averaging.ngayon ko lang nalaman ang correct term.Cost averaging is investing the same amount every month while value investing is where investors buy more( buying low) and sell (selling high).

what differentiates value averaging to cost averaging is that you have to watch the market unlike cost averaging,wala ka ng pakialam kesyo mataas sya or mababa basta lagay ng same amount of money at the same period of time.

TSO · « **Reply #81 on:** Dec 17, 2011, 05:15 PM »

Quote from: luranski on Dec 17, 2011, 04:24 PM

has anyone tried value averaging?

*raises hand*

^_^

freefront · « **Reply #82 on:** Dec 17, 2011, 08:38 PM »

Quote from: luranski on Dec 17, 2011, 04:24 PM

has anyone tried value averaging?

Yep. But not on my own fund. I'm running my baby sister's account alongside mine. Since i'm using PDC warehousing, that would be cost averaging while her account is funded in bursts, usually during dips. I use the free fund switching for mine, but not on hers. Next year would be a different story for sure.

luranski · « **Reply #83 on:** Dec 20, 2011, 09:59 PM »

Thanks guys. What do you think is better?

ferrariEverest · « **Reply #84 on:** Dec 21, 2011, 06:45 AM »

Quote from: luranski on Dec 17, 2011, 04:24 PM

has anyone tried value averaging?

i think pareho lang to dun sa Pyramiding down

Quote from: luranski on Dec 20, 2011, 09:59 PM

What do you think is better?

of course VA is much much better than CA. simply because u are not investing/trading blindly with VA.

mxherr5 · « **Reply #85 on:** Dec 21, 2011, 11:19 AM »

Quote from: TSO on Dec 17, 2011, 05:15 PM

*raises hand*

^_^

Sir, do you do that with your stock market investment
or local MF/UITFs? I already gave up doing it and just do
random investing hahaha...

Sunlife's the best fund family to practice this, too bad
its a hassle to accomplish their order ticket then have
my agent submit it.

But I'm eyeing on doing VA soon using ALFM Growth Fund,
With its online buy and sell feature, I think VA won't be
a problem with BPI's MF/UITFs =D

TSO · « **Reply #86 on:** Dec 21, 2011, 12:33 PM »

Stocks.

Bakit pa ako papasok sa mutual fund?

Avician · « **Reply #87 on:** Dec 21, 2011, 04:54 PM »

Quote from: TSO on Dec 21, 2011, 12:33 PM

Stocks.

Bakit pa ako papasok sa mutual fund?

Tama, Ika nga sa seminar na inattend ko dito sa stocks, it is your money, so ikaw dapat ang magmanage,. Siguro ok lang siguro part of your investment sa mutual fund for diversification of investment, Pero eventually once natutuo ka na at naiintindihan na ang stock market, stocks nalang kasi sa stocks din naman nagiinvest ang mutual fund at bonds.

allanmm13 · « **Reply #88 on:** Dec 21, 2011, 06:03 PM »

Quote from: Avician on Dec 21, 2011, 04:54 PM

Pero eventually once natutuo ka na at naiintindihan na ang stock market, stocks nalang kasi sa stocks din naman nagiinvest ang mutual fund at bonds.

Minor correction po, sa stocks parang katapat nyan eh MF Equity (ownership investment).
Yung Bond (loanership investment) wala atang katapat sa stocks yun.

mxherr5 · « **Reply #89 on:** Dec 21, 2011, 08:46 PM »

@TSO,

Hmmm maybe because I view stocks differently hehehe
Its something you just buy on dips, unlike mutual funds
that you can just you know, hold forever theoretically =D

@avi, allan's right. I think bonds are raised for capital expenditures
or to pay off existing debt