3-Month Review of Starting Small Dollar Investments
Earlier when the exchange rate hit 1380, I bought about $2,000 as a small investment. Lately the rate has dropped so I'm seeing paper losses lol. But I'm just thinking of it as currency trading and holding on. I'm considering steadily buying with 10% of my salary each month.
Would that be too risky in the long run? Or is it better to keep accumulating a bit each quarter like I'm doing now? Curious to hear from people with experience.
6 answers
Yeah, you just HODL dollars, lol.
I've been steadily dollar-cost averaging for 3 years now, and if you worry about the exchange rate, you'll never buy. Actually, it's better to buy a bit more each time it dips. Putting aside 10% of your salary is totally manageable, so just go for it.
Well.. if you want to make a profit from currency exchange, you also need to factor in fees, and the tricky part is when to sell after setting a target exchange rate. Buying 10% of your salary every month indefinitely is just a dollar savings account—doesn't really feel like investing, does it?
It's a three-month review, but isn't it too early to judge if you're on a long-term plan? If anything, it might be better to buy more now while the exchange rate has dropped a bit.
Haha, I bought at 1420 and cut my losses.. But it does recover over time.
Actually, isn't a market like this, when it's falling, the right time for buying in installments? Monthly contributions seem better than quarterly, hehe. And at 1380, isn't that expensive?